While many Western brands are scaling back global operations, McDonald’s and Yum China (KFC) are currently executing their most aggressive expansion strategies in history.
Here is an analysis of how these two giants have managed to grow "like wildfire" in the world’s second-largest economy.
KFC and McDonald’s were symbols of urban luxury in big cities like Beijing and Shanghai.
But today, they are expanding into much smaller cities where hundreds of millions of people are entering the middle class.
Take for instance McDonald's, which recently reached 7,000 stores in China, with a goal of reaching 10,000 by 2028.
Why KFC (Yum China), on the other hand, already surpassed the 10,000-store milestone and is moving even faster.
As a matter of fact, it opened over 1,350 new stores in 2024 alone and is on track to hit a goal of 20,000 total stores by late 2026.
One of the biggest secrets to their success is that they don't just export Western menus; they try to capture the group of people that crave Western brands but expect local convenience and pricing.
For instance, you can find congee (rice porridge), egg tarts, and spicy chicken skewers that taste like street food. In some regions, KFC even sells crayfish burgers and bamboo shoot soup.
Despite their growth, the big bands still face local competitors like Tastien and Wallace, which have forced the Western giants into a brutal price war.
To counter this, KFC launched "Crazy Thursday," a massive weekly discount campaign that became a viral meme culture in China. McDonald’s countered with "10 Yuan ($1.40) Deals" to ensure they aren't outpriced by local budget chains.