Whether or not China’s lowest rate of economic growth in the last 27 at 6.2% is a result of the current US/China trade war – fast food chains are looking to expand in China as they offer, and consumers look for cheaper options. Even with the slowdown, China’s market for new customs is still larger than the US with a population of 1.4 billion people.
The following chains are looking to expand:
1. McDonald’s – plans to open 400 stores by the end of 2019 and have 4,500 stores by 2022. McDonald’s stock has a market value of $164.4 billion and up 20% from last year.
2. Popeye’s – looking to open 1,500 stores in the next ten years.
3. KFC – already have 6,000 stores in China with reported net sales of $1.4 billion in net sales in China alone, accounting for more than 25% of KFC’s total revenue. Yum brands (parent company of KFC and other brands such as Taco Bell), spun off their KFC China brands into Yum China.
4. Burger King – have more than 1,000 stores in China
5. Tim Hortons – will open 1,500 stores in the next 120 years.
6. Starbucks – operating in China for over 20 years has more than 3,900 stores. They will try to have 6,000 stores in China by 2022. Starbucks’ China/Asia Pacific sales comprise 20% of their third quarter revenue.
Like US auto manufacturers, it appears fast food companies realize the market potential of 1.4 billion people in China versus the 350,000 population in the US.