Spurned once is bad enough. But the Popeyes fast food brand is looking increasingly like a wallflower in the massive China restaurant market, after being dumped there last week for the third time. The popular fried chicken chain was spurned this time by TH International Ltd. (THCH.US), which only acquired the China rights to Popeyes two years ago.
TH International’s two-year experiment with Popeyes followed another similar-length marriage for the brand in China with another franchise partner, which also ended in divorce in 2022. Popeyes first ventured into China around 20 years earlier when the country’s economy was just taking off, though that foray also ended in failure.
This latest failure is less about Popeyes, which is owned by Restaurant Brands International Inc. (QSR.US), whose other chains include Tim Hortons and Burger King. Instead, it’s more about a recent coffee war in China that is pressuring companies up and down that food chain, from Starbucks (SBUX.US) at the top to cheaper options like Luckin (LKNCY.US) and Cotti that are now selling cups of premium brew for just 10 yuan, or about $1.40.