Five Guys Burgers Set for Beijing Expansion Amid Uptick in US Fast-Food Foothold in China

Next month, the renowned American burger establishment, Five Guys, is all set to launch in Beijing. This event signifies the continued expansion of U.S. restaurant brands in China, undeterred by the escalating competition in the market.

Five Guys plans to establish three eateries in Beijing’s shopping centers, strategically located in areas favored by the younger demographics. The brand’s entry into Mainland China came about in 2021, facilitated through a collaboration with local franchise operator, JumboFive. The inaugural restaurant, located at Shanghai’s Printemps Mall on Huaihai Middle Road, attracted considerable consumer attention. The brand reported that customers started lining up from as early as 2 am, enduring waits of over three hours on the opening day.

The rapid expansion of Five Guys in China aligns with a larger trend noticed among American fast-food companies. These organizations are seeking growth opportunities in China as the prospects in the U.S. become more saturated. Domino’s Pizza China serves as a representative example, recently extending its franchise network to encompass 1550 stores. The pizza chain added a net of 235 new outlets in the first half of the year, concurrently reporting a surge in sales during the second quarter.

In an akin move, Yum China recently decided to purchase the Pizza Hut business in mainland China from U.S.-based Yum Brands. The deal, worth US$1.2 billion in cash, aims to tap into the potential of Pizza Hut as the country’s largest casual dining restaurant brand. Last year, Pizza Hut generated a substantial revenue of $2.3 billion and an operating profit of $183 million.