Fast food chains from the United States and China are expanding into each other's markets, highlighting a growing cultural and economic link between the two countries, even as political tensions remain. 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. Meanwhile, Chinese chains are entering the U.S. market, seeking new opportunities amid a challenging domestic environment.
American fast-food companies are expanding their presence in China. Last month, Chinese customers waited in the rain for the opening of the first Church’s Texas Chicken in Shanghai. Church’s plans to open at least 600 more locations across China. Wendy’s anticipates opening 1,000 restaurants there over the next decade. Established players are also deepening their reach. McDonald’s plans to open 1,000 new restaurants in China this year and 10,000 total by 2028. Burger King, which entered China in 2005, aims to triple its store count to 4,000 by 2035.
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 seen as a premium destination worth taking a date to. McDonald's and Pizza Hut followed in 1990. Today, China is KFC’s largest market, with about 13,000 restaurants in the country compared to around 3,750 in the U.S. American brands see room for further growth, particularly in smaller, inland cities where brands like McDonald’s and Starbucks are expanding. However, China is not an easy market for foreign companies, and most American chains now rely on Chinese partners to find locations and share the financial risk.
Chinese fast-food chains are also seeking new opportunities in the U.S. Mixue, one of the world’s largest fast-food chains with over 53,000 locations, opened its first three U.S. stores in December. 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 plans at least two dozen more locations across four states. At least nine other mainland Chinese chains have made their U.S. debuts since 2023, with most specializing in drinks and snacks. These 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.
While the U.S. market is lucrative, Chinese brands face challenges, including competition and potential regulatory scrutiny. American and Chinese chains alike are exploring opportunities across the Pacific, but Chinese brands remain largely unproven in the U.S. Even chains with thousands of locations elsewhere are testing whether novelty can translate into customer loyalty. The U.S. is too big to ignore, said Aaron Allen, founder of a restaurant consulting firm. It accounts for one-third of global restaurant revenue despite having only around 4% of the world’s population. While American brands can carry a premium image in China, many Chinese brands compete heavily on price, which may lead to customer backlash or higher tariffs if they undercut U.S. rivals with low-cost imports.
Fast Food Chains Expand Across U.S.-China Border Amid Cultural and Economic Ties
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