US fried chicken restaurant chain operator Popeyes Louisiana Kitchen is pushing ahead with its expansion plans in China despite the economic downturn caused by the coronavirus pandemic. The company announced that it is still on track to establish up to 1,500 restaurants in mainland China over the next decade, starting with its flagship restaurant in Shanghai.
The first flagship Popeyes is reportedly set to open along Huaihai Road in Shanghai next week. Popeyes China CEO, Raphael Coelho, mentioned in a statement that China continues to be an attractive market for international brands and the demand remains high despite the economic downturn. He added that Shanghai will be the perfect location to establish its foundation given the high demand for international products.
The flagship store will have a larger-than-usual area of about 470 square meters. The company stated that the store will incorporate both Chinese and Louisiana design aesthetics that will provide customers with a more luxurious and premium dining experience. Coelho stated that the launch of the flagship will be the start of the company's rapid expansion in the country over the next decade. The company is aiming to set up new roots in the Chinese market, which it hopes would help it grow into a long-term brand that is loved by local clients and consumers.
After the establishment of the flagship store in Shanghai, Popeyes China plans to immediately construct other branches in neighboring cities and regions. The first batch of new restaurants will be built in cities such as Nanjing, Suzhou, and Hangzhou. The company then plans to expand to farther areas such as Beijing, Chengdu, Tianjin, Wuxi, and Ningbo.
The company's franchise in China is owned by TAB Foods Investments (TFI), the same company that owns a major stake in Burger King China. Popeyes and Burger King are owned by US-Canadian food giant Restaurant Brands International. TFI currently operates thousands of fast-food chain restaurants in China and Turkey. It first introduced Burger King to China in 2012, with the company now having more than 1,300 outlets across the nation.
The decision to bring Popeyes into China comes as other major businesses increase their investments in the country. Foreign companies such as Starbucks and Walmart have both announced big expansion plans in China. In response to concerns over the economic effects of the coronavirus pandemic, Coelho stated that China's quick response in dealing with the crisis has boosted his confidence in sticking with their long-term strategy.
