US-based fried chicken chain Popeyes has set its eyes on China’s booming fast-food market, announcing an ambitious plan to open 1,700 outlets across the mainland in the coming decade. This move comes as a challenge to established rivals like KFC and McDonald’s.
The company’s aggressive growth strategy has been made possible after a sister company, known simply as Tims in mainland China, became the exclusive operator of the Louisiana-based restaurant brand. Tims China’s well-honed store development platform and strong mainland team are expected to drive Popeyes’ expansion.
The decision to expand also reflects the growing interest of international fast-food chains in China’s massive consumer market, following the country’s recovery from its Covid-19 containment measures earlier this year.
“China remains a very important market for the brand to expand its presence,” said Jason Ge, general manager of Popeyes China, expressing hopes that customers will be impressed by the food, decor, and music.
After a major business revamp, Popeyes reopened its first store in Shanghai, just four months after closing all nine of its outlets in China. The brand first entered China three years ago, creating a buzz among food enthusiasts.
The plan is to open 10 outlets in Shanghai this year, and increase that number to 70 by 2024. By 2025, the brand aims to add 100 new outlets, expanding to more than a dozen mainland cities. In five years’ time, Popeyes anticipates running 500 stores on the mainland, including 180 franchise outlets.
Popeyes currently operates 4,100 outlets worldwide.
Lu Yongchen, chief executive of Tims China, emphasized that both brands would work together to expand the mainland business, focusing on supply chains, digitalization strategy, and brand awareness.
“The reopening of China’s economy heightened global fast-food giants’ hopes that they can regain growth momentum in the world’s largest consumer market,” remarked Chen Xiao, CEO of Shanghai Yacheng Culture.
In Shanghai alone, spending on hotels and dining out jumped 42% in the first half of 2023, reflecting a fast recovery in the restaurant business. According to YuboZhiye Information Technology, China’s fast-food market size is expected to reach 1.5 trillion yuan in 2024, up 70% from 2017.
With a budget of US$30 million in cash and an additional earmark of US$60 million, Popeyes China is fully prepared to pursue aggressive growth, creating a riveting battle with other fast-food giants in the world’s largest consumer market.
This news is based on the article published on thestar.com.my.
