China and the United States are divided on many issues, from tariffs and technology to Taiwan. But there is one thing tying them together: fast food.
American restaurant and beverage chains are expanding rapidly in China, drawn by the potential customer pool in a country with four times the U.S. population. China’s languishing economy and cutthroat industry competition, meanwhile, have Chinese chains trying their luck in the U.S., turning crumbs and straws into a two-way cultural bridge between the two superpowers.
The bilateral trade in burgers and bubble tea is business- and consumer-led gastrodiplomacy in action, said Yaling Jiang, the founder of ApertureChina, a market research company with headquarters in Shanghai and London. In China, recent American arrivals like Popeyes and Five Guys are seen as a guilty pleasure, she said, while the increasingly international palates of Americans have created space for Chinese brands to serve as their nation’s unofficial ambassadors.
“Consumerism builds a safe, introductory channel for contemporary Chinese culture and can be a great way to elevate China’s soft power,” Jiang said.
The White House has not revealed the menu for the state dinner that U.S. President Donald Trump is hosting for Chinese President Xi Jinping on Thursday. But a taste for a cheap, crowd-pleasing meal may be something the two leaders share.
In 2013, Xi made a rare public visit to a steamed-bun restaurant in Beijing. He waited in line and ordered a 21-yuan ($3) meal featuring six pork-and-scallion buns, vegetables, and a bowl of stewed pork liver and intestines. Trump’s love of fast food is legendary; he even manned a fry station at a Pennsylvania McDonald’s during his 2024 campaign.
American fast-food companies are expanding their presence in China
Last month, Chinese customers lined up in the rain for the opening of the first Church’s Texas Chicken in Shanghai. Church’s plans at least 600 more across China. Wendy’s says it anticipates opening 1,000 restaurants there over the next decade.
Established players are deepening their reach as well. McDonald’s plans 1,000 new Chinese restaurants this year and 10,000 total by 2028. Burger King, which arrived in China in 2005, says it expects to triple its store count to 4,000 by 2035.
“Despite political tensions between the U.S. and China, Chinese actually still go crazy for American brands,” said Shaun Rein, founder and managing director of the Shanghai-based China Market Research Group.
KFC became the first major American fast-food chain to enter mainland China when it opened a Beijing restaurant in 1987. At the time, it was viewed as a premium destination worth taking a date to, Rein said. McDonald’s and Pizza Hut arrived in 1990.
“McDonald’s and KFC were a beacon of health and hygiene compared to what you had in the rest of the market,” Rein said.
China is now KFC’s largest market by far. The Kentucky-born fried chicken chain counts about 13,000 restaurants in China, compared with around 3,750 in the U.S. American brands see room for further growth.
Much of China’s population lives in the smaller, inland cities where brands like McDonald’s and Starbucks are rolling out stores, said Sory Park, a project manager at China-focused market research and strategy firm Daxue Consulting.
That doesn’t make China a cakewalk for foreign restaurant companies. Most American chains now rely on Chinese partners to find locations and share the financial risk. Earlier this year, a Chinese investment firm acquired a 60% stake in Starbucks’ China operation after several years of falling store traffic.
American chains trade on their brand names and signature products, but many tailor their menus to appeal to Chinese customers. KFC restaurants in China, for example, serve french fries and Original Recipe chicken alongside custardy egg tarts and congee, a savory rice porridge.
“They need to operate like a Chinese company but deliver American menus that incorporate Chinese values, eating habits, and tastes,” Park said.
Chinese fast-food chains seek new opportunities in the US
Mixue, one of the world’s largest fast-food chains with more than 53,000 locations, opened its first three U.S. stores in December. Mirroring the Shanghai crowd outside Church’s Texas Chicken, New York customers waited in the cold to sample soft-serve ice cream, fruit teas and milk tea with toppings like coconut jelly and taro balls at a store in Herald Square.
Mixue has announced at least two dozen more planned locations across four states. At least nine other mainland Chinese chains have made their U.S. debuts since 2023, all but one specializing primarily in drinks and snacks. They include Heytea, with 40 U.S. locations, and Luckin Coffee, which overtook Starbucks as China’s biggest coffee brand and has 20 stores in New York.
Wallace, a chain founded in 2000, grew to more than 20,000 restaurants by selling American-style chicken and hamburgers in China. In California, where the second U.S. Wallace opened last month, the company tweaked its chicken sandwich recipe to appeal to American diners.
Before entering the U.S., many major Chinese food-and-beverage chains expanded in Southeast Asia. A real estate slump and weak consumer spending made growth harder to find at home. The average life span of China’s 16 million restaurants and chains was expected to fall to 15 months last year, according to a U.S. government report.
The American restaurant industry is considerably smaller, with 1 million locations, according to the National Restaurant Association. Jiang, of ApertureChina, sees another advantage for Chinese brands: a social media trend called “Chinamaxxing,” in which Westerners adopt Chinese lifestyle habits or wellness practices.
Not every brand makes its origins clear. Wallace’s U.S. website and social media pages do not mention the brand’s Chinese ownership or headquarters in southeastern China’s Fujian province. The company didn’t respond to an email from The Associated Press.
The U.S. carries both potential rewards and risks for Chinese chains
American and Chinese chains alike have an appetite for opportunities across the Pacific. But Chinese brands remain largely unproven stateside. Even chains with thousands of locations elsewhere are testing whether novelty can translate into loyalty.
The U.S. is too lucrative a market to ignore, said Aaron Allen, founder of restaurant consulting firm Aaron Allen and Associates. It accounts for one-third of global restaurant revenue despite having only around 4% of the world’s population, he said.
“The grass is always greener somewhere else in the world,” Allen said.
While American brands can carry a premium image in China, many Chinese brands compete heavily on price. At a Mixue in Hollywood this week, a medium matcha latte cost $6.83; a nearby Starbucks sold the same drink for almost $1 more. Wallace sells three full-size chicken sandwiches for $10.
“The Chinese can build stuff cheaper and faster. Why would that not apply to food?” Allen said.
But Allen said Chinese brands could face customer backlash or higher tariffs if they undercut U.S. rivals with low-cost Chinese imports. Like other Chinese companies, restaurant brands also could face U.S. scrutiny over their collection and use of customer data, he said.
Luckin Coffee co-founder and CEO Jinyi Guo told investors in February that the U.S. “represents one of our important long-term opportunities” and the company was proceeding “with great patience and discipline.”
China and the United States, despite significant political and economic tensions, share an unexpected commonality: fast food. The expansion of American fast-food chains into China is a booming venture fueled by the country’s massive population, while Chinese fast-food brands are increasingly testing the waters in the U.S. market. This cross-cultural exchange reflects a form of « gastrodiplomacy, » as American and Chinese fast-food chains seek to bridge cultural divides and attract consumers in both countries.
American chains have made significant inroads into the Chinese market, drawn by the potential for substantial profits. For instance, recent American arrivals such as Popeyes and Five Guys are perceived as guilty pleasures among Chinese consumers. Meanwhile, established players like KFC and McDonald’s continue to deepen their presence. KFC, which opened its first outlet in Beijing in 1987, has since become a household name in China, boasting approximately 13,000 restaurants compared to around 3,750 in the U.S. McDonald’s has similar ambitions, planning to open 1,000 new locations in China this year alone, with a target of 10,000 by 2028.
Shaun Rein, the founder of the China Market Research Group, notes that despite the ongoing political tensions between the U.S. and China, Chinese consumers maintain a strong affinity for American brands. Fast food, in particular, has evolved in China from a luxury dining experience to a widely accepted option, often viewed as a symbol of health and hygiene compared to local alternatives.
However, the fast-food landscape in China poses challenges for American companies. Most chains collaborate with local partners to mitigate risks and navigate the complex market. Adapting their menus to appeal to local tastes is essential; KFC, for instance, offers a range of Chinese dishes like congee and egg tarts alongside its classic offerings. This hybridization of menus demonstrates the necessity for American brands to resonate with Chinese consumer preferences while maintaining their brand identity.
Conversely, Chinese fast-food brands are making their mark in the U.S. market. Notable chains like Mixue have opened locations in the U.S., offering products such as soft-serve ice cream and fruit teas. Other brands like Heytea and Luckin Coffee have also made their debuts, with Luckin Coffee even surpassing Starbucks in popularity within China. These expansions are driven in part by a saturated domestic market and a desire for growth, pushing Chinese brands to explore opportunities abroad.
Chinese chains face significant competition in the U.S., where the restaurant industry is considerably smaller than in China, boasting around 1 million locations. The U.S. market, however, represents a lucrative opportunity due to its substantial consumer spending on dining, accounting for one-third of the global restaurant revenue. Despite the potential rewards, Chinese brands must navigate the complexities of consumer preferences and market dynamics in the U.S.
Mixue and other Chinese brands emphasize affordability, often pricing their products competitively against established American chains. For example, a medium matcha latte from Mixue costs around $6.83, while a similar drink at Starbucks is priced higher. This pricing strategy can attract cost-conscious consumers but carries risks, such as potential backlash or scrutiny regarding the quality and origins of their products.
Furthermore, the U.S. market presents unique challenges for Chinese chains, including regulatory hurdles and the need for cultural adaptation. While many Chinese companies have successfully established themselves in Asia and beyond, replicating that success in the U.S. is not guaranteed. The novelty of Chinese fast-food offerings may attract initial interest, but building lasting consumer loyalty is a different challenge altogether.
In summary, the intersection of American and Chinese fast food highlights a unique aspect of bilateral relations amid broader geopolitical tensions. Fast food serves as a cultural bridge, allowing both sides to explore and appreciate each other’s culinary preferences. While American chains continue to thrive in China’s expanding market, Chinese brands are cautiously entering the U.S. with hopes of carving out their niche. The ongoing evolution of this sector illustrates how consumer tastes and globalization can facilitate connections between two powerful nations, providing a glimpse of potential collaboration even amidst larger disagreements.
