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A fresh ‘appetite’ for the Chinese market: US restaurant chains return to China’s growth story as market appeal grows

2026-07-17 08:59   环球时报网英文版

  The renewed focus on China comes as US restaurant brands face a more challenging operating environment at home.

  The US restaurant industry remains one of the world"s largest, but years of expansion have left many chains competing in a challenging business environment amid "persistent cost pressures," "uneven traffic" and higher operating costs, according to an industry report from the US National Restaurant Association.

  Wendy"s latest financial performance illustrates the pressure. In its 2026 first-quarter earnings report, Wendy"s said its US same-restaurant sales fell 7.8 percent year-on-year, while international systemwide sales increased 6 percent.

  Attractive dining market

  Zhu Danpeng, a Chinese food industry analyst, told the Global Times on Thursday that many international restaurant brands view China as one of their most important overseas markets.

  "The development of brands such as KFC, McDonald"s and Starbucks in China has demonstrated the feasibility of this market model," he said.

  China"s large consumer base, the growing role of younger generations as a major consumption force, and rising demand for fast food, delivery services and convenient dining have created continued room for international restaurant brands to expand, Zhu said.

  China"s catering sector has remained resilient amid evolving consumption patterns. Official data released on Wednesday showed that the sector"s value added rose 5.0 percent year-on-year in the first half of 2026, faster than the 4.7 percent GDP growth during the same period.

  The continued expansion of established global brands also highlights the depth of China"s dining market. Starbucks has described China as "its largest overseas market," while Yum China, which operates KFC and Pizza Hut in China, had over 18,000 restaurants as of the end of 2025 and continues to see room for further growth.

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