American burger chain Five Guys to open Beijing store amid fast-food expansion

American burger chain Five Guys will debut its first Beijing store next month, reports the South China Morning Post. Following the success of its Shanghai store, the move will see the company join a group of US fast-food brands newly entering or accelerating their expansion in China.

Chains including Wendy’s, Chili’s, Texas Chicken and Popeyes are hoping to grab a slice of the world’s second-largest consumer market as they face saturation at home, analysts said. Meanwhile, Nasdaq-listed Wendy’s announced in May that it plans to open up to 1,000 stores across China over the next 10 years. It has signed a new franchise agreement with an experienced local restaurant operator, whose name remains undisclosed, according to its first-quarter earnings report.

“Some smaller American chains are seeking opportunities in China to offset saturation in their domestic markets,” said Sandy Lim, China consumer analyst at S&P Global Ratings. “Despite fierce competition, there are still pockets of demand within China’s large catering market.”