China and the United States, two of the world’s largest economies, are often at odds on numerous issues, including trade policies, technology, and geopolitical tensions surrounding Taiwan. However, a surprisingly unifying element exists between these two nations: fast food.
American restaurant and beverage chains are rapidly expanding within China, lured by the vast consumer base in a country boasting a population four times that of the United States. Concurrently, the challenges posed by China’s sluggish economy and fierce competition have prompted local chains to explore opportunities in the U.S. market. This dynamic exchange of culinary offerings serves as a cultural bridge between the two superpowers.
According to Yaling Jiang, founder of ApertureChina, a market research company based in Shanghai and London, the bilateral trade in fast food items represents a form of “gastrodiplomacy.” American brands like Popeyes and Five Guys are viewed in China as indulgent treats, while Chinese cuisine is increasingly embraced by American consumers, effectively positioning these brands as cultural ambassadors.
“Consumerism offers a welcoming introduction to contemporary Chinese culture and can significantly enhance China’s soft power,” Jiang elaborates.
As the U.S. prepares for a state dinner hosted by President Donald Trump for Chinese President Xi Jinping, it’s noteworthy that both leaders share a penchant for fast food. In 2013, Xi made headlines by visiting a steamed bun restaurant in Beijing, while Trump has famously embraced fast food throughout his public life, even working at a McDonald’s during his 2024 campaign.
The appetite for American fast food remains strong in China. Recently, customers braved rainstorms to be among the first to experience the opening of Church’s Texas Chicken in Shanghai, with plans for 600 more locations nationwide. Wendy’s is also eyeing significant growth, with plans to establish 1,000 restaurants in China over the next decade.
Established brands are not resting on their laurels. McDonald’s is launching 1,000 new outlets in China this year alone and aims for a total of 10,000 by 2028, while Burger King anticipates tripling its store count to 4,000 by 2035. Despite ongoing political tensions, the allure of American brands remains strong among Chinese consumers, as noted by Shaun Rein, founder of the China Market Research Group.
KFC, which opened its first location in Beijing in 1987, was perceived as a premium dining experience at the time. Today, KFC is the largest American fast food chain in China, with around 13,000 restaurants compared to approximately 3,750 in the U.S. The continued expansion reflects a growing demand, particularly in smaller inland cities where brands like McDonald’s are opening new outlets.
However, operating in China is not without challenges. Many American chains collaborate with local partners to navigate the market and share financial risks. For instance, Starbucks recently sold a 60% stake in its Chinese operations amidst declining foot traffic.
To cater to local tastes, American chains often adapt their menus. KFC in China, for example, features items like custardy egg tarts and congee alongside its traditional offerings.
Conversely, Chinese fast food chains are also making strides in the U.S. market. Mixue, which boasts over 53,000 locations globally, opened its first three stores in the U.S. in December. The response has been enthusiastic, with customers queuing in cold temperatures to try their offerings of soft-serve ice cream and fruit teas.
Mixue plans to expand with at least two dozen more locations across four states. Other Chinese chains, including Heytea and Luckin Coffee, have also made their U.S. debuts, focusing primarily on beverages and snacks.
Wallace, a chain founded in 2000, has expanded to over 20,000 restaurants in China, selling American-style chicken and hamburgers. The company recently opened its second U.S. location in California, adapting its offerings to appeal to American tastes.
Before venturing into the U.S. market, many Chinese food and beverage chains expanded in Southeast Asia. However, a real estate slump and weak consumer spending in China have made growth more challenging at home. The average lifespan of restaurants in China was projected to drop to just 15 months last year, highlighting the competitive environment.
With the U.S. market being significantly smaller, with approximately 1 million locations, the potential rewards are enticing. The U.S. accounts for one-third of global restaurant revenue despite representing only about 4% of the world’s population, as noted by Aaron Allen, founder of the restaurant consulting firm Aaron Allen and Associates.
“The grass is always greener somewhere else in the world,” Allen observes, emphasizing the allure of the American market for both domestic and international brands.
While American brands often carry a premium image in China, many Chinese brands compete heavily on price. For instance, a medium matcha latte at a Mixue in Hollywood costs $6.83, while a nearby Starbucks charges nearly $1 more for a similar drink.
However, Chinese chains may encounter challenges such as customer backlash or increased tariffs if they undercut U.S. competitors. Furthermore, scrutiny over data collection practices remains a concern for all foreign brands operating in the U.S.
Luckin Coffee, which has rapidly risen to prominence in China, considers the U.S. market an “important long-term opportunity,” as stated by co-founder and CEO Jinyi Guo, emphasizing a patient and disciplined approach to growth.
As both American and Chinese brands seek to expand their footprints across the Pacific, the interplay of cultural exchange and competitive business strategies will continue to unfold, bringing unique flavors and experiences to consumers on both sides.
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Durbin reported from Detroit. Chan reported from Hong Kong. Associated Press writer Fu Ting contributed from Washington.
