Are there any "blank spots" left for new foreign brands in China's highly competitive fast food market?

Church's Texas Chicken, a brand of fried chicken from the United States that emphasizes "large portions" and "crispy and juicy," wanted to try it. Recently, it announced high-profile plans to expand in China, saying it had signed franchise agreements with local operators, plans to open its first store in Shanghai this summer, and hopes to open 600 or more stores in the country in the future.

What is the origin of Texas Chicken, the industry how to see this "suddenly" want to do something in China's foreign brand prospects? Let's just take a look.

I. Charter Agreement

Recently, Texas Chicken said in a briefing that its first store in China plans to open in Shanghai this summer, followed by more stores. China will be its 27th international market.

To enter the Chinese market, the brand has signed a special deal with local carrier Deke Shengtang, which plans to open 600 or more stores in China in the next few years. Texas Chicken said the agreement is its largest international development agreement to date, based on its confidence in the Chinese market.

"The entry into the Chinese market is an important milestone in the company's global development history." "China is one of the most dynamic and influential consumer markets in the world," Roland Gonzalez, CEO of Church's Texas Chicken and Texas Chicken, said in the briefing. "We will connect consumers with a rich and wonderful taste."

The notice also mentioned that further details regarding the store design, location selection and the follow-up rhythm of opening in China will be further disclosed near the opening of the first store.

So, what does this high-profile brand come from?

Public Profile, Church's Texas Chicken by George W. Church Sr. Founded in 1952 in Texas, Texas, it specializes in "Texas Southern" fried chicken, offering its core flavors of raw and spicy. Its chicken is usually marinated with heavy spices and fried with double-layered bran and powdered, and is said to have a crispy, juicy texture.

At the same time, the store also offers snacks and drinks such as honey-butter biscuits, chicken wings, sandwiches and mashed potatoes. In product strategy, its "large amount" and "high cost-effectiveness" are the main selling points. In the U.S. mainland, its per capita passenger price is about $6-13.

The brand has a strong presence in the southern United States and Texas, but its overall popularity is less than that of KFC. Since 2000, it has entered the international market. Since "Church" is prone to religious associations in some overseas markets, and to strengthen the "Texas style" brand recognition, it uses the name "Texas Chicken" in international markets. So far, Church's Texas Chicken and Texas Chicken in 22 countries and regions around the world has more than 1400 stores, system sales of more than $1.5 billion (about 10.235 billion yuan).

The expansion of both brands in recent years cannot be without the impetus of capital power. According to the website, since 2021, the two brands are owned by High Bluff Capital Partners. And FS Investments, a Philadelphia-based asset management company with around $80 billion under management. Recently, Texas Chicken has achieved growth in Europe and other global markets.

On the path to enter the Chinese market, Texas Chicken has chosen to rely on the strength of local partners. According to the APP, the local operator of the cooperation, Deke Shengtang, known exclusively as Shanghai Deke Sheng Tang Brand Management Co., Ltd. (hereinafter referred to as "Deke Shengtang"), was founded in January 2026 and operates a range of brands management, restaurant management and supply chain management services.

The majority shareholder of Deque Saints is Shanghai Longjing Dingsheng Brand Management Co., Ltd., which was established in September 2024. The business range includes brand management, restaurant management and marketing planning, and has invested in several restaurant brands such as No. 3 Coconut, Spring Lemon, Spring Li Xiangxiang and others. According to a live photo on the Internet, Texas Chicken and Longxing Dingsheng reached a strategic cooperation, the two sides signed a special deal in the Chinese market, and held the text of the agreement together.

"As the brand expands globally, we are very careful about how we expand. Dex Saints knows the local market, and together we will build a long-term model that is rooted in the local area while keeping our identity intact." Tim Waddell, executive vice president of Church's Texas Chicken and Texas Chicken International, said in the briefing.

II. The fried chicken player

Texas Chicken is about to enter the Chinese fried chicken circuit, a lively and competitive market.

In the Chinese restaurant market, fried chicken has always been a favorite food category of consumers. In recent years, fried chicken-related content has continued to become popular on social platforms. As of November last year, Douyin, Kuaishou platform, "fried chicken" topic play volume exceeded 33.8 billion times, 14 billion times. Last year in Jingdezhen, the "chicken steak guy" became popular, which also contributed to the rise of the search index.

According to < Fried Chicken Category Development Report 2025 > released by Red Food Research Institute at the end of last year, from 2019 to 2024, the market size of Chinese fried chicken category will grow from 60 billion yuan to 94 billion yuan, with a compound annual growth rate of 9.4%.The market size of fried chicken categories is expected to reach 105 billion yuan in 2025. By November 2025, the number of fried chicken-related enterprises in China reached 98,800, an increase of nearly 4,000 from the end of 2024. The report also pointed out that the fried chicken track continues to be hot and occupies an important position, mainly due to the characteristics of easy standardization, mature supply chain, and flexible franchise investment models.

From the competitive landscape, market stratification is now relatively obvious.

According to data provided to Little Food today by Euromonitor International, in the Chinese market in 2025, the market share of fast food chains with chicken-based menus is measured by the retail price of food service, with Yum China's KFC, Wallace and Texan coming in the top three. According to Niche's data, as of April this year, there were 13,302 KFC, 19,435 Wallace and 2,653 Dex stores in China. Among them, the head brand, represented by KFC, has built a deep moat with a mature supply chain and a brand mind.

In addition to the three major giants, foreign-funded brands continue to be laid out. For example, although McDonald's is not a mainstay of fried chicken, related products occupy a certain proportion, and the store size is not small, making it an important player in the fried Chicken market. Popeyes, a New Orleans-style fried chicken unit owned by RBI catering group, has relaunched after several rounds of adjustments and recently returned to the Beijing market with a new operational team, with its China CEO Li Zhen saying it plans to open 10-20 stores in the city this year.

At the same time, in addition to American and Japanese fried chicken styles, Chinese fried Chicken brands are also on the rise. According to the data of narrowmen catering, as of April this year, the number of chicken wing stores exceeded 5,600, the number for fried chicken legs in Linyu was about 5,100, and the stores of Yanqing Guan fried Chicken, Lao Han fried chicks and other foods exceeded 200, further intensifying market competition.

Today, an industry insider who once worked for a head-of-the-way fast food business told Little Foods, In the short term, as a new brand of American Texas fried chicken entering the Chinese market, Texas Chicken has a differentiated topicality and freshness, easy to gain the attention of young consumers in social media, and form an initial topical heat.

"But in the medium to long term, really establishing a foothold still lies at the heart of localization: whether the menus meet the tastes of Chinese consumers, whether the first-store experience is excellent, and whether the marketing continues to break circles, otherwise this freshness is likely to be diluted by the head brand." He said.

III. Rising intensity

At present, the Western-style chain fast food industry in which the fried chicken category is located is in the stage of steady expansion of scale.

China's Western-style fast-food market will be 499.65 billion yuan in 2025 and 587.09 billion yuan in 2027, according to data from iMedia Consulting. The Western Fast Food Brands Development Report 2025 released by the Red Meat Industry Research Institute (hereinafter referred to as the "Red Meat 2025 Report") shows that As of March 2025, the top five brands (including Yum China, McDonald's, Wallace, Zheng Xin Chicken and Tustin) have a combined market share of 44%, meaning there is still some scope for fragmentation and opportunities for small and medium-sized players.

Today, an industry expert who has worked with numerous restaurant chains stated: China's Western fast food market still has opportunities for growth, and the industry chainization rate still has room to improve, especially in low-tier cities, and the standardized, replicable Western fast food model has the basis for further penetration.

"Against this backdrop, mature players, such as KFC, continue to optimize store models, while new entrants and small and medium-sized players have the opportunity to penetrate segments through more flexible pricing and more focused product structures." He said that digital operations, takeaway channels and local product innovation are also becoming new drivers of growth.

But beyond the opportunities, the challenges cannot be ignored.

First, there is increasing competition in the market. The Red Table 2025 report pointed out that the Western fast food market has seen an increase in entrants in recent years, and brands not only have to deal with the challenge from competitors in the same category, but also face cross-border encroachment by other market brands. For example, DQ launched a sub-brand "DQ Burger"; Some existing beverage brands and convenience stores have also launched light snacks, burgers and other products.

Then there is the issue of product homogenization. The Red Meal 2025 report states that due to the high standardization of Western fast food products and supply chain homology, Western fast food brands share many similarities in product tastes and menu structure. This homogenization phenomenon is not only reflected in classic burgers, pizza, pasta, French fries and other products, but also extends to product lines such as beverages, desserts, specialty snacks and other snacks.

At the same time, the trend towards more cautious consumer spending continues to weigh on brands. The above-mentioned people who serve a number of catering brands told Little Foods,“In the midst of macro fluctuations, cheaper and easier became the main decision logic of consumers. Per capita consumption is under pressure, which requires brands to promote refined operations, including optimizing raw material sourcing, warehousing and inventory management, and store staffing, to control costs and maintain market competitiveness.”

In addition, the trend towards health also presents structural challenges. The Red Meal 2025 report said that Western fast food is more often cooked by frying and fried, and the food mix is dominated by meat and starchy ingredients, leading to their widespread labeling as "high in calories, high in fat and nutritionally unbalanced." "For brands, we need to step up research and development efforts to launch products that are low-fat, low-salt and high-protein to meet consumers' healthy dietary needs, and can improve product innovation efficiency and better adapt to consumer demand upgrading through cooperation with upstream supply chain companies." The person said.

In such an industry environment, the China road for new foreign brands is clearly neither short of opportunities nor easy.