SHANGHAI: One September day at lunchtime, the line outside a newly opened Church's Texas Chicken — a US-based fried chicken chain — wound back two or three times, filling nearly half the sidewalk on a downtown Shanghai food street.
After about an hour, two young women were nearing the end of the line. "It's a first store, so a big crowd is only normal," one said. Behind them was an eager buyer surnamed Shi, who had studied in Canada. The bone-in fried chicken felt like an old acquaintance, he said. "It's juicier."
Across the street, Gao — the owner of a herbal tea shop — has grown used to the long queue out front. She recalled the crowds were even bigger in the first few days after opening. "They lined up from 9 am to 10 pm."
The fast-food brand, headquartered in Atlanta, Georgia, is the latest to make high-profile inroads into the Chinese mainland market. While McDonald's and KFC, which entered China over three decades ago, have long been etched in the memories of Chinese millennials, a new wave of US fast-food brands is once again betting on China's younger generation.
In early August, Virginia-based burger brand Five Guys opened its first two Beijing locations following its 2021 Shanghai debut. The chain, which prides itself on using fresh ingredients and no freezers, charges around 100 yuan ($14.94) per meal, pricier than most of its fast food peers. Nevertheless, even weeks after opening, there are still long lines of customers awaiting their orders.
"With US fast food brands increasingly entering China, the Chinese market is a top priority in our global expansion, underscoring our long-term commitment to the country," said Steven Zhang, China CEO of Texas Chicken. The chain has signed a development deal with a local team for at least 600 stores.
Chinese consumers' love of US fast food can be traced back to a few years after the country's reform and opening-up.
In November 1987, KFC opened its first fried chicken restaurant in the Chinese mainland in Beijing. A piece of original recipe chicken cost 2.5 yuan at the time — a pretty penny by Chinese consumption standards then. Even so, crowds still waited nearly an hour in line for a wing, drumstick or leg.
In October 1990, McDonald's opened its maiden Shenzhen, Guangdong province store, where all 20 cash registers running at full capacity still weren't enough to meet demand, and all 500 seats inside were filled.
Over the past four decades, the country's fast-food sector has gone from a blank slate to one of the most crowded markets in the world.
"As one of China's most trend-setting and inclusive cities, Shanghai is highly receptive to new things, making it an ideal place for foreign brands to take root and a high-quality market sample for refining our products, services and operating models in the early stages," said Zhang of Texas Chicken.
Before opening, the Church's Texas Chicken store ran taste tests with over 500 Chinese consumers, adjusting saltiness, seasoning and crispiness to fix issues locals care about, Zhang said.
The restaurant sits in a fashionable food district in downtown Shanghai that has seen a revival in recent years.
The presence of US brands in China is going hand-in-hand with their deep integration into the country's industrial chain. McDonald's China — together with its core Chinese supply chain partners — participated in a supply chain expo held in Beijing in June.
Yum China, which also owns Pizza Hut in the Chinese mainland, said it remains committed to a local-first approach, working to develop a local supply chain system up to world-class standards.
Church's Texas Chicken has chosen a local Chinese team to work with Yangtze River Delta suppliers and build a local supply chain, Zhang said. - China Daily/ANN
