Chinese Food Chains Making Global Expansion Moves

Chinese food chains are broadening their reach beyond borders, making significant strides in international markets. By leveraging their unique culinary offerings and strategic expansion plans, these chains are establishing a global presence. This expansion reflects the growing appeal of Chinese cuisine worldwide and highlights the industry’s evolving dynamics as it ventures into new territories.

For decades, it’s been common to see U.S. restaurant and fast food chains around the globe, but now China is making its mark in the international food industry. While much of the initial expansion has been focused on other Asian countries, Chinese food chains are also branching out into markets like the United States, Australia, and the United Kingdom. These chains are introducing unique concepts abroad, with a focus on beverages and single-item menus.

Chinese media outlet Caixin reports that the recent surge in international expansion is driven by market saturation and challenges in the Chinese economy. This expansion not only boosts business but also enhances China’s soft power, reflecting its cultural influence and appeal worldwide.

As of 2023, Chinese soft power has prominently featured soft serve and bubble tea, with Mixue leading the charge. By the end of the year, Mixue, a popular chain from Zhengzhou in Hunan province, had over 4,000 stores in 11 countries outside China, including Southeast Asia, Indonesia, South Korea, Japan, Australia, Myanmar, Hong Kong, and Macau. Other bubble tea chains have also expanded internationally. Chagee, which began its overseas expansion in 2019, now has at least 100 stores in Malaysia, Thailand, and Singapore. Recent expansions include Heytea, which opened locations in London, Melbourne, New York, Kuala Lumpur, and Vancouver last year, and Shuyi Tealicious, which expanded to Malaysia, Vietnam, Indonesia, and Spain in 2023, having previously focused on Canada. Chabaidao also entered Seoul this year. China’s largest homegrown coffee chain, Luckin, which was embroiled in a fraud scandal over inflated sales, only began its international operations in 2023, opening 30 locations in Singapore.

Chinese restaurants specializing in specific dishes are also making waves abroad. Yang's Braised Chicken Rice, known for its single menu item, has opened over 100 locations in the U.S., Australia, Japan, and Singapore since 2017. Tai Er, serving fish and pickled cabbage stew, has expanded to four Asian countries and the U.S. since 2021, emphasizing artisanal ingredients and traditional preparation methods. Hotpot is another successful segment, with Haidilao expanding to 13 countries, including Hong Kong and Taiwan, between 2012 and 2023. Zhangliang Malatang, which started its international expansion in 2019, now operates in 15 countries, including the United States, Australia, Canada, the United Kingdom, and New Zealand.

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Source: Statista‍