Popeyes flexes its muscles in China as KFC feels the heat

Popeyes’ fried chicken sandwich went viral on US social media. (Reuters)
Updated 20 November 2019

Popeyes flexes its muscles in China as KFC feels the heat

  • Popeyes signed a lease in Shanghai for its first store in China on Monday

SHANGHAI: US fried chicken chain Popeyes wants to become the top chicken brand in China, the chief executive of its parent company said on Tuesday, as it prepares to take on KFC, the leading player in the world’s most populous market.

Popeyes signed a lease in Shanghai for its first store in China on Monday, which is expected to open next year.

The company outlined plans in July to build 1,500 restaurants in China in the coming decade, becoming the last of Toronto-based Restaurant Brands International Inc’s main brands to enter the country.

By contrast, Yum China’s KFC has about 6,300 stores. Yum has said that it is acutely aware there is more opportunity to expand in China, noting that while it was in 1,300 Chinese cities, there are still as many as 800 cities without a KFC store.

Popeyes’ July plan was “just really to put a framework on the short-term potential business,” Jose Cil, RBI’s CEO said in an interview in Shanghai.

“I think we can be the No. 1 chicken brand here in China and all around Asia,” he said, adding that consumers in the region were looking for options. He dismissed concerns that a slowing China economy and trade tensions had dimmed prospects for growth in the long term.

Cil’s remarks comes as the Cajun-inspired fast food chicken chain experiences a surge in popularity in the US after a newly launched fried chicken sandwich went viral on social media.

Demand was such that Popeyes had to stop taking orders after only two weeks before relaunching it this month.

The sandwich will also be offered in China, he said.

Cil noted that RBI’s other two main brands had seen rapid growth in China.

Burger King has expanded to around 1,100 stores in China from less than 100 in 2012. “We think we’ll keep growing at a steady pace,” Cil said.

And Tim Hortons, its Canadian coffee chain, just opened its 28th store in China after launching there in February.

“We are preparing ourselves to be able to accelerate growth in the coming years,” Cil said of
the brand.


Trump calls for World Bank to stop lending to China

Updated 07 December 2019

Trump calls for World Bank to stop lending to China

WASHINGTON: US President Donald Trump on Friday called for the World Bank to stop giving loans to China, one day after the institution adopted a lending plan to Beijing over Washington’s objections.
The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025. The plan calls for lending to “gradually decline” from the previous five-year average of $1.8 billion.
“Why is the World Bank loaning money to China? Can this be possible? China has plenty of money, and if they don’t, they create it. STOP!” Trump wrote in a post on Twitter.
Spokespeople for the White House and the World Bank did not immediately respond to requests for comment.
The World Bank loaned China $1.3 billion in the fiscal 2019 year, which ended on June 30, a decrease from around $2.4 billion in fiscal 2017.
But the fall in the World Bank’s loans to China is not swift enough for the Trump administration, which has argued that Beijing is too wealthy for international aid.