Spicy chicken in Shanghai… Popeyes is cookin’ up a big comeback in China after mysteriously closing all nine of its locations there in April. The fried-chicken franchise plans to open 1.7K stores in China in the next decade, with 10 openings in the next quarter. FYI: Popeyes is owned by Restaurant Brands International (owner of Burger King and Tim Hortons) in the US, but operates under Tims China in China.
Sweet heat: While Popeyes plans to offer its iconic spicy chicken and popcorn shrimp, it’ll also serve more localized dishes like sweet chili chicken and pomelo milkshakes.
Long lines: Throngs queued up for Popeyes’ Shanghai flagship opening last week, giving the company an opening-day record for orders.
Slow times, fast food… China is struggling to bounce back from its strict pandemic policies, but consumers haven’t stopped splurging on fast food. Thanks to viral menu favorites and Gen Z’s love of all things fried, China’s fast-food market has surged 70% since 2017. Now US chains are doubling down. Subway plans to open 3K+ new shops in China to expand its footlong footprint by 7X over the next 20 years. McDonald’s is opening 900 locations in China this year, while Starbucks aims to have 9K shops in its second-largest market by 2025.
Recoveries can be lopsided… Lots of US companies have reported taking a hit from China’s underwhelming recovery (most recently, construction giant Caterpillar and cosmetics titan Estée Lauder). But restaurants and hotels are telling a different story. In Shanghai, spending on hotels and dining out soared 42% to $2.6B in the first half of this year, boosting results for companies like Marriott and Starbucks.