Popeyes made its debut in China on May 15. Its flagship location is in Shanghai.
Popeyes officially opened its doors in China on May 15 and the turnout was perhaps not something one would expect from a fragile consumer set still navigating a massively disruptive pandemic.
As evidenced by a number of social media posts showing hundreds of customers waiting hours in line outside of that flagship Shanghai restaurant, demand in China is high for this brand. Credit some good, old-fashioned buzz for that.
Such buzz was put into motion by a single product launch in the U.S. in August of 2019. Popeyes’ chicken sandwich sold out in two weeks after generating traffic growth of 256% at the chain. Its relaunch in November yielded a 299% increase in foot traffic. Within just a few short months, Popeyes chicken sandwich was declared one of the most successful fast food product launch ever.
Executives at Popeyes’ parent company, Restaurant Business International, have made it clear they want to try and duplicate that success overseas, including China, and considering chicken rival KFC’s success in the market, why not?
So far, so good. Although the company wouldn’t disclose specific sales numbers, Popeyes today reported its most successful week for new market entry in its 48-year history. That those results are indexed against more than 3,300 restaurants in 25 countries is significant on its own, never mind the fact that the global pandemic still very much exists.
Of course, domestically, Q1 proved the sandwich is somewhat pandemic proof. During an unprecedented quarter that ravaged most of the restaurant industry, comp sales growth at Popeyes was around 30%, while visits continued to increase at a clip of 40% according to Placer.ai.
In Shanghai, the company is trying to capture its own buzz with digital elements to appeal to younger consumers, while its design pays homage to the brand’s Louisiana roots. The menu has been slightly adapted to reflect Asia Pacific taste and cultural preferences, meaning the chain’s signature chicken sandwich is available, but with dark meat. That sandwich, as well as Popeyes’ classic bone-in chicken, are the best sellers so far.
“Our new addition roasted chicken sandwich, tailored for the China market, is also selling very well,” said Sami Siddiqui, president of Asia Pacific, Popeyes.
Will it be enough to de-throne KFC? Time will tell. More than likely, a significant amount of time. KFC planted its flag in China in 1987, the first American fast food chain to develop in the market, and has since grown to more than 5,000 restaurants in 1,100 cities. Yum China isn’t done, either, with plans to add thousands of new units alongside sister chain Pizza Hut.
Perhaps a more feasible target for Popeyes at this point is McDonald’s
Regardless of competition, plenty of white space exists. Chicken production and consumption is on the rise in China due to high pork prices. This has Siddiqui optimistic.
“China is one of the largest chicken-eating markets in the world and we are committed to establishing and growing the Popeyes brand over the long term,” Siddiqui said. “Despite the lingering impact of COVID-19, we have been thrilled with the early results and feedback from guests on our first opening. This reinforces our commitment to growing Popeyes in China.”
It will be worth watching to see if this first-week success can be sustained, particularly if the China market finds its pre-crisis rhythm again. Prior to the COVID-19 outbreak, the fast food industry in China was on a staggering growth trajectory, increasing by nearly 9% from 2014 to 2019, versus less than 4% in the U.S. market. Popeyes’ goal is to open 1,500 restaurants in China in the next 10 years.
