Introduction:
At a time when domestic competition in China’s restaurant industry has reached a boiling point, with price wars raging and profit margins drastically squeezed, many food and beverage (F&B) brands are urgently seeking new growth paths. Overseas markets—especially North America—are becoming the “New World” in the eyes of many Chinese F&B brands. In recent years, brands such as Xijiade and Ziyan Baiwei Chicken have opened their first stores in North America, while leading F&B enterprises like Haidilao and Mixue Bingcheng have also made North America a key region for their future overseas expansion plans. Why are Chinese F&B brands so eager to enter the North American market? And in this process of exploring a new market, what kinds of opportunities and challenges will they encounter?
North American F&B Market: A Door of Opportunity Opens Wide
The U.S. food and beverage market is neck-and-neck with China, accounting for one-fourth of the global food service market and boasting an enormous scale. According to data, the size of the U.S. food and beverage market reached USD 899 billion (KRW approx. 1,235 trillion) in 2024, and it is expected to grow at an annual rate of 3.5% until 2029. This presents vast development potential for Chinese F&B brands.
From a consumer structure standpoint, as the number of middle- to high-income households in the U.S. (annual income exceeding USD 100,000) steadily increases, these groups are pursuing higher quality and greater diversity in their dining options. Chinese cuisine—with its rich variety and unique flavors—perfectly aligns with their preferences, injecting strong momentum into the growth of Chinese food consumption.
At the same time, the U.S. has a large Chinese population. As of 2023, around 5.5 million Chinese were living in the U.S., alongside a large number of Chinese international students and tourists. This group forms a stable and substantial consumer base for Chinese cuisine. Their innate love for Chinese food not only ensures steady customer flow but also promotes word-of-mouth marketing that attracts more local American consumers to try Chinese cuisine. Authentic Chinese regional cuisines such as Sichuan, Cantonese, and Hunan are entering North America one after another, continually reshaping local perceptions of Chinese food. Today, Chinese cuisine in the U.S. has evolved from a niche and marginal culinary option to a part of mainstream dining culture and one of the everyday meal choices.
Opening Stores in North America: A Strategic Move to Elevate Global Brand Awareness
Opening stores in North America, particularly in globally influential cultural and business hubs like New York, holds significant strategic value for Chinese F&B brands. Times Square in New York, known as the “Crossroads of the World,” sees an average daily footfall of 3 million people. Brands that appear in this area can gain massive exposure and rapidly enhance international brand recognition. For example, when Heytea launched in New York’s Times Square, it attracted widespread media coverage that not only boosted the brand’s reputation in global markets but also laid the foundation for its broader international expansion.
Opening a store in New York also helps build a premium and international brand image. Bawangchaji, for instance, went public in New York and benchmarked itself against global giants like Starbucks. Within just a month of listing, it opened its first store in Los Angeles, quickly establishing a foothold in the North American market. For many F&B brands, successfully operating a store in North America is a strong endorsement of their brand strength and product quality. It also helps attract consumers and investors from around the world, enhancing the brand’s global influence.
Supply Chains and Overseas Support Services: A Solid Backbone
When it comes to going global, supply chain capability is a key pillar for F&B brands. To ensure stable supply and quality of ingredients, many Chinese F&B brands are actively building local supply chains in North America.
With growing overseas expansion demands, an increasing number of Chinese food supply chain enterprises are entering the North American market. Since 2016, Haidilao has been building overseas central kitchens. As of the end of 2023, it had over 300 suppliers in North America and had established a comprehensive supply chain network to ensure efficient food distribution and consistent quality.
Brands such as Quanjude are also setting up cold-chain warehouses in North America to ensure freshness and timely delivery of ingredients.
Beyond supply chain enterprises, a wave of third-party service providers familiar with both Chinese F&B brands and the North American market has emerged. These companies offer one-stop services that range from consultation and store launch preparations to operational management. Some even participate deeply in overseas expansion through equity investments or franchising models. For example, brands like Xiaolongkan Hotpot and Ziyan Baiwei Chicken have successfully entered the North American market with support from the same third-party company.
The ongoing improvement of supply chains and overseas service systems is providing robust support for the sustained development and expansion of Chinese F&B brands in North America.
Challenges in North American Expansion for Chinese F&B Brands
Chinese F&B brands face multiple challenges when expanding into North America:
On the human resources front, the pace and efficiency of labor in the U.S. food service industry differ from those in China. More staffing is required, and the industry has long suffered from labor shortages. Cultural differences also pose difficulties in team collaboration.
In terms of legal and commercial environments, the U.S. has complex and meticulous regulations, especially regarding food safety—there are over 30 relevant laws, and each state has its own regulations. Leasing stores and processing administrative paperwork can be time-consuming and require professional assistance to ensure compliance.
On the competitive front, the mature North American food and beverage market is dominated by local brands. New entrants from China must comprehensively enhance their competitiveness in products, marketing, and service to gain a foothold.
[Disclaimer]: The above content reflects analysis of publicly available information, expert insights, and BCC research. It does not constitute investment advice. BCC is not responsible for any losses resulting from reliance on the views expressed herein. Investors should exercise caution.