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Zhu Wenqian

American burger chain Five Guys will debut its first Beijing store next month, the company said last week, joining a group of US fast-food brands newly entering or accelerating their expansion in China.
Chains including Wendy’s, Chili’s, Texas Chicken and Popeyes are hoping to grab a slice of the world’s second-largest consumer market as they face saturation at home, analysts said.
Five Guys opened its first China outlet in Shanghai in 2021 and drew large crowds. It plans to open three locations in Beijing at popular shopping centres catering to young consumers, with site hoardings indicating opening soon.
“Some smaller American chains are seeking opportunities in China to offset saturation in their domestic markets,” said Sandy Lim, China consumer analyst at S&P Global Ratings. “Despite fierce competition, there are still pockets of demand within China’s large catering market.”
Unlike earlier foreign brands that relied on direct-operation models managed by overseas headquarters – fully exposing them to profits, losses and volatility and causing some to eventually leave the market – many US brands now favour franchising, Lim added.
Fu Yifu, a special research fellow at Su Merchants Bank in Nanjing, in eastern China’s Jiangsu province, said inflation had continued to squeeze household spending power in the US, while the penetration rate of Western fast food in China continued to rise.
Early entrants including KFC, McDonald’s and Starbucks have refined a local franchising model to reduce risk. Five Guys targets quality-focused diners in first-tier cities. As Chinese consumers no longer blindly prefer foreign brands, these chains must rely on distinct products and localised operations to grow, Fu said.
“I’m excited Five Guys is landing in Beijing, and it brings back my American memories,” said Ray Jin, a 40-year-old office employee in Beijing. “I visited Popeyes recently and found its taste and layout differ greatly from US outlets. I’m eager to see how Five Guys caters to local customers.”

Meanwhile, Nasdaq-listed Wendy’s announced in May that it plans to open up to 1,000 stores across China over the next 10 years. It has signed a new franchise agreement with an experienced local restaurant operator, whose name remains undisclosed, according to its first-quarter earnings report.
Same-store sales for the burger chain in the US declined 7.8 per cent year on year in the first quarter, while systemwide sales in international markets rose by 6 per cent from a year earlier, according to its earnings report.
Regarding its expansion in China, Wendy’s said it did not have additional details to share at this time.
Meanwhile, US fast food chain Texas Chicken will open its first store in China in Shanghai this summer. It has partnered with Deke Shengtang, a leading local operator with multiple quick-service restaurant brands, to develop at least 600 restaurants nationwide over the next few years, it said in a statement in April.
Another US chain, Chili’s, opened its second store in Beijing in May, attracting crowds and producing frequent table waits.
Louisiana fried chicken brand Popeyes returned to Beijing in April, two decades after pulling out of China in 2003. It also runs over 80 outlets in Shanghai.


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Unlike earlier attempts that relied on management by overseas headquarters, US firms now favour franchising, analyst says


Unlike earlier attempts that relied on management by overseas headquarters, US firms now favour franchising, analyst says.


Five Guys to open in Beijing as more US chains hunger for success in China

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Unlike earlier attempts that relied on management by overseas headquarters, US firms now favour franchising, analyst says

Unlike earlier attempts that relied on management by overseas headquarters, US firms now favour franchising, analyst says