US food operators accelerate expansion in China

Source:Global Times Published: 2020/7/1 23:40:51


Photo: VCG


 
US food operator Shake Shack is to expand in the Chinese mainland with a minimum of 15 new openings in South China by 2030 as foreign catering brands step up efforts to push further into the Chinese market. 

Shake Shack announced on Tuesday its plan to open a minimum of 15 branches in Shenzhen, Guangzhou, Fuzhou and Xiamen, pushing the number of outlets in the Chinese mainland to 55 by 2030. 

The US brand opened its first mainland outlet in Shanghai in January 2019 and set a record with queues for nearly seven hours on the opening day. 

"We remain humbled by our fans in China and continue to be encouraged by the performance of our Chinese business through this recovery. It's a great time to deepen our roots in this market," said Michael Kark, chief global licensing officer of Shake Shack in a press release.

Foreign catering brands are eager to push further into the Chinese market, particularly now that the novel coronavirus outbreak has been contained.

Turkey-based TAB Food Investments, which operates fast food chain Burger King, introduced a new brand, chicken restaurant Popeyes, in mid-May.

Popeyes is set to open 1,500 stores in the Chinese mainland in the next 10 years, TFI CEO and Vice Chairman Korhan Kurdoğlu told the Global Times in May.

There is a huge attraction for foreign brands to enter and expand in the Chinese market, given the country's large and still rising population, Zhu Danpeng, a food industry analyst, told the Global Times on Wednesday.

"The consumption behavior of China's young consumers is less loyal to brands than older generations, which provides an excellent opportunity for new foreign food and beverage brands to tap the Chinese market," he said.



Posted in: INDUSTRIES,COMPANIES

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