Fast-food sector sizzling as more firms enter market

Five Guys, a popular burger chain from the United States, entered the Beijing market earlier this month with the opening of two restaurants, marking the latest move by the international quick-service restaurant brand to expand in the increasingly competitive dining market in the country.

The Virginia-based chain opened outlets at Xidan Joy City and Chaoyang Joy City, where customers began lining up before opening hours. The launch follows Five Guys' debut in Shanghai in 2021, where they have since expanded to five stores in the city.

A Five Guys representative told Beijing Business Today that the company expects to have three stores operating in Beijing by the end of September. The chain plans to further expand in the capital next year while accelerating store openings across eastern China.

Founded in 1986, Five Guys has built its global reputation on a made-to-order operating model featuring fresh beef patties, hand-cut fries prepared daily and customizable burgers. The company said it is also increasing local sourcing in China — about 80 percent localized so far — while maintaining its standardized menu and operating procedures.

Five Guys' expansion comes as several US quick-service restaurant chains ramp up investment in China.

In April, fried chicken chain Popeyes opened its Beijing flagship store in the Wangfujing commercial district before announcing expansion plans for Shanghai; Nanjing, Jiangsu province; and Hangzhou, Zhejiang province. The company has also partnered with Alibaba-backed Taobao Flash Purchase to develop at least 20 stores, bringing its nationwide store count to more than 90.

Church's Texas Chicken also announced its formal entry into China this year after signing an exclusive franchise agreement with local partner Deke Shengtang. The company plans to open its first store in Shanghai and has outlined a long-term goal of operating more than 600 outlets nationwide.

At the same time, international restaurant operators are restructuring their China businesses, shifting away from traditional franchise models toward greater local ownership and operational control.

In June, Yum China — which operates KFC and Pizza Hut on the Chinese mainland — completed its acquisition of Pizza Hut's mainland business from Yum Brands, becoming the brand's sole owner in the market after previously operating under a franchise agreement.

Yum China has continued to post solid growth. The company reported a 6 percent increase in second-quarter system sales from a year earlier, while revenue rose 13 percent to $3.1 billion and operating profit climbed 14 percent to $348 million. It added about 1,200 net new stores in the first half of the year, expanded into more than 200 additional cities and ended the period with 19,297 restaurants.

McDonald's adopted a similar localization strategy earlier. In 2017, a consortium led by CITIC Group, CITIC Capital and Carlyle acquired a controlling stake in the Chinese mainland and Hong Kong operations of McDonald's. Subsequent equity adjustments have left the consortium with a majority ownership stake.

As of June 30, McDonald's operated 8,114 restaurants in China, adding 887 net new locations over 2025. China accounted for more than 60 percent of net new restaurant openings in the company's International Operated Markets segment.

Meanwhile, Restaurant Brands International sold an 83 percent stake in Burger King China to Chinese private equity firm CPE in 2025, while retaining a minority interest and granting the investor exclusive long-term development rights.

China's burger market continues to show strong growth potential. According to iiMedia Research, burgers are the country's most popular Western fast-food category, with more than half of surveyed consumers identifying them as their preferred choice. The survey also found that food safety has overtaken taste as the leading purchase consideration — a trend that could favor premium brands such as Five Guys as competition intensifies.