Popeyes in China: Making Fried Chicken Fly in a Foreign Market

As one of the world’s largest fried chicken chains, Popeyes had failed twice to enter the Chinese market over a twenty-year span. In March 2023, Restaurant Brands International (RBI), the owner of Popeyes, attempted a third strike by bringing the fried chicken brand under its local joint venture, Tim Hortons International Limited China (Tims China). The responsibility of making this third attempt successful rested with Yongchen Lu, the chief executive officer of Tims China. To cultivate another world-class, fast-service brand in China, Lu faced the imperative of delineating synergy between the two distinctive brands (one in coffee and the other in fried chicken). Could he make Popeyes a success in China?

This case is intended for undergraduate and graduate-level classes that cover topics in foreign entry, expansion, acquisition, and management of fast-service brands. The following courses are especially fitting, depending on the analytical angle and learning objectives: international business (entry mode choice and internationalization of a brand); global strategy (entry and expansion in a foreign market and management of cross-border cooperation); strategic management (situational analysis and acquisition synergy); and small-and-mid-sized enterprise management (as relating to franchising, fast-service chain management, and store operation).<br><br>Despite its 50-year history and prestige, Popeyes faces a puzzle: it has failed to crack a booming Chinese market twice. This naturally invites students to wonder whether the brand’s third strike, the acquisition by a local operation, can work. A detailed description of the fast-food market in China is included to assist in situational analysis and decision-making as students work to assess Popeye’s potential success. After working through the case and assignment questions, students will be able to do the following:<br><br><ul><li>Acquire the skills to conduct situational analysis in a foreign context.</li><li>Gain a deep understanding of synergy in merger and acquisition.</li><li>Practice decision-making concerning expansion in a foreign market.</li><li>Identify the success factors behind fast-service chain management.</li></ul>

• fast-service brand
• expansion
• foreign markets
• synergy
• acquisition
• Popeyes
• China market
• restaurant brands international
• Tims China
• international business
• global strategy
• strategic management
• small-and-mid-sized enterprise management
• franchising
• store operation
• situational analysis
• fast-food market
• success factors