Chinese foodservice – Part 3: Opportunities for overseas expansion

Chinese foodservice chains are becoming an increasingly familiar sight in major cities around the world. This report highlights the growing importance of international markets for leading Chinese foodservice brands, especially as growth opportunities within China become limited.

Historically, the international expansion of Chinese cuisine was characterized by fragmented, small-scale brands that relied heavily on local supply chains and primarily served Chinese communities abroad. By contrast, the current wave of internationalization reflects a more integrated approach across the entire industry chain. Improved standardization across Chinese foodservice brands has boosted the scalability of chain operations, and the target customer base has expanded from Chinese populations to the wider consumer market. This transformation is also driving the internationalization of the supply chain for Chinese foods and ingredients.

But the path to global expansion is not without challenges. Due to the significant differences between markets overseas, customization has become a critical strategy for Chinese foodservice brands. To scale up successfully, brands must find and adopt the most suitable business models, consistently promote Chinese culinary heritage, and invest in brand development.

As Chinese foodservice companies expand internationally, their capital needs are also rising – particularly for building supply chain infrastructure and forming strategic partnerships. Companies must also develop strategies to hedge against foreign exchange and commodity price fluctuations.