ring China, Texas Chicken isn’t going in alone. Working with a local partner is almost essential, not just for operations but for navigating consumer preferences and regional differences. “The team at Deke Shengtang brings the local expertise and ambition we look for in a partner,” Tim Waddell, EVP of international business at Texas Chicken, said.However, the market Texas Chicken is entering is already densely occupied. Yum China, the operator of KFC and Pizza Hut in China, opened 1700 net new stores last year, bringing its total footprint to 18,100 locations. More than 30 per cent of new stores were franchised, up from historical levels.  McDonald’s operates more than 6,800 stores and opens roughly 1,000 new ones per year. Domino’s Chinese master franchisee, DPC Dash, reached 1460 stores across 72 cities as of March, adding 147 net new stores compared to year-end.  By comparison, Texas Chicken is entering the market at a much smaller scale than any of these brands did when they first arrived. And those competitors have had decades to build supply chains, loyalty programs, and a deep understanding of Chinese consumers. The opportunity is still there. Fast food in China thrives on convenience. In major cities, office workers often rely on quick meals, and many workplaces don’t provide canteens. What’s changed even more is how people order. Digital ordering dominates, accounting for the vast majority of sales for major chains, and delivery now makes up a significant share of revenue. Digital ordering now accounts for approximately 95 per cent of Yum China’s total company sales, while delivery accounts for roughly 51 per cent. That’s where Texas Chicken faces an uphill climb. “Every single one of those 600 locations will face the same problem on day one. A market that has never tasted the product. No existing loyalty to leverage. No habit to remind. Every guest has to be found and converted from scratch,” Todd W, US-based franchise expert, said on LinkedIn. “At that scale, local activation isn’t a nice-to-have. It’s the variable that determines whether the pipeline performs or stalls.”  Opportunities come with challenges Many Western brands across most retail categories, including fashion, cosmetics and consumer electronics, in China have had a rough few years, battling to regain relevance after being disrupted by nationalist sentiment and a shift in discretionary spending.  Quick-service restaurants, however, have largely been unaffected by that narrative. For the full year 2025, Yum China’s total revenue grew 4 per cent to US$11.8 billion, with same-store sales also climbing. McDonald’s was not far behind with comparable sales in China rising 4.6 per cent for the full year and 4.5 per cent in the fourth quarter. While the sector is less affected by the economic headwinds, perhaps the most underappreciated challenge facing any new Western QSR entrant in China is the ongoing price war. Last year, both McDonald’s and Yum China rolled out promotional pricing to win over customers. Domestic chain Wallace has surpassed 20,000 stores and targets price-conscious consumers with fried chicken burgers priced as low as 10 yuan (roughly US$1.40), and Tastien, which built its identity around Chinese-style burgers with handmade buns, operates more than 7000 stores across 340 cities and has surpassed Burger King and Pizza Hut in total store count. Average consumer spending at Tastien runs around 19.6 yuan, compared to 33.8 yuan at KFC and 27.6 yuan at McDonald’s. Texas Chicken will need to decide early where it lands on that spectrum. Trying to undercut domestic chains on price is a race with no floor. Competing with KFC on brand heritage is equally difficult after nearly four decades of entrenchment.  Further reading: Inside Yum China’s operating reset as China’s consumers stay cautious