Foreign fast-food brands eye quick expansion
Within two years, Subway added nearly 500 stores in China, comparable to combined growth over previous three decades
McDonald's remains optimistic about China's growth potential.
In a recent statement, McDonald's China highlighted its loyalty program as a key factor in its performance, with the company noting that the program had become a "best-practice model" for its global operations.
By year-end, McDonald's plans to enter the Ningxia Hui autonomous region and Qinghai province, achieving 100 percent coverage of all provincial-level administrative areas on the Chinese mainland. The chain is expected to open 1,000 new restaurants this year.
Meanwhile, Restaurant Brands International, the parent company of quick-service chain Burger King, is also making strides in China. CEO Joshua Kobza highlighted the progress at Burger King China in the second quarter of 2025, where same store comparable sales turned positive, and unit economics improved quarter-over-quarter.
The wider Western quick-service food chain boom in China, as evidenced by the performance of McDonald's, Yum China and Subway, also highlights the changing consumption patterns and eating habits of Chinese consumers, according to industry research.
Roolee Lu, director of food & drink and food services, Mintel China, said since the start of 2025, restaurant revenue has shown only modest growth, and consumer confidence has improved only slightly. However, leading brands have continued their expansion over the past 12 months.
"Western-style quick-service chains have fared best. Their mature, standardized operating systems, sharp price-value positioning and relentlessly refreshed menus allowed them to deliver the steadiest growth in an otherwise sluggish landscape," said Lu.
Major chains have increasingly turned to discounting: McDonald's 9.9 yuan ($1.38) burger-and-snack deals, Pizza Hut's buy-one-get-one offers, and, in late 2024, McDonald's announced its 2025 Value Year campaign, while Pizza Hut launched its value-oriented WOW sub-brand.
"These giants leverage scale and brand power to protect margins, even as they trade margin for traffic," she added.
Yet, Western food faces growing competition. Against the backdrop of surging "China-chic" dining trends, 18-24 year olds are drifting away from Western fare, said Lu.
In Mintel's 2023 fast-food study, this group's preference for Western food has fallen to parity with, or even below, Chinese cuisine. More worrying, this same demographic shows the highest likelihood of becoming ultra-frequent users of Chinese fast food.
If this trend persists, Western brands risk losing market share among the demographic that once fueled their growth, said Lu.
