Popeyes flexes its muscles in China as KFC feels the heat

Popeyes’ fried chicken sandwich went viral on US social media. (Reuters)
Updated 20 November 2019

Popeyes flexes its muscles in China as KFC feels the heat

  • Popeyes signed a lease in Shanghai for its first store in China on Monday

SHANGHAI: US fried chicken chain Popeyes wants to become the top chicken brand in China, the chief executive of its parent company said on Tuesday, as it prepares to take on KFC, the leading player in the world’s most populous market.

Popeyes signed a lease in Shanghai for its first store in China on Monday, which is expected to open next year.

The company outlined plans in July to build 1,500 restaurants in China in the coming decade, becoming the last of Toronto-based Restaurant Brands International Inc’s main brands to enter the country.

By contrast, Yum China’s KFC has about 6,300 stores. Yum has said that it is acutely aware there is more opportunity to expand in China, noting that while it was in 1,300 Chinese cities, there are still as many as 800 cities without a KFC store.

Popeyes’ July plan was “just really to put a framework on the short-term potential business,” Jose Cil, RBI’s CEO said in an interview in Shanghai.

“I think we can be the No. 1 chicken brand here in China and all around Asia,” he said, adding that consumers in the region were looking for options. He dismissed concerns that a slowing China economy and trade tensions had dimmed prospects for growth in the long term.

Cil’s remarks comes as the Cajun-inspired fast food chicken chain experiences a surge in popularity in the US after a newly launched fried chicken sandwich went viral on social media.

Demand was such that Popeyes had to stop taking orders after only two weeks before relaunching it this month.

The sandwich will also be offered in China, he said.

Cil noted that RBI’s other two main brands had seen rapid growth in China.

Burger King has expanded to around 1,100 stores in China from less than 100 in 2012. “We think we’ll keep growing at a steady pace,” Cil said.

And Tim Hortons, its Canadian coffee chain, just opened its 28th store in China after launching there in February.

“We are preparing ourselves to be able to accelerate growth in the coming years,” Cil said of
the brand.


France ready to take Trump’s tariff threat to WTO

Updated 08 December 2019

France ready to take Trump’s tariff threat to WTO

  • Macron government will discuss a global digital tax with Washington at the OECD, says finance minister

PARIS: France is ready to go to the World Trade Organization to challenge US President Donald Trump’s threat to put tariffs on French goods in a row over a French tax on internet companies, its finance minister said on Sunday.

“We are ready to take this to an international court, notably the WTO, because the national tax on digital companies touches US companies in the same way as EU or French companies or Chinese. It is not discriminatory,” Finance Minister Bruno Le Maire told France 3 television. Paris has long complained about US digital companies not paying enough tax on revenues earned in France.

In July, the French government decided to apply a 3 percent levy on revenue from digital services earned in France by firms with more than €25 million in French revenue and €750 million ($845 million) worldwide. It is due to kick in retroactively from the start of 2019.

Washington is threatening to retaliate with heavy duties on imports of French cheeses and luxury handbags, but France and the EU say they are ready to retaliate in turn if Trump carries out the threat. Le Maire said France was willing to discuss a global digital tax with the US at the Organization for Economic Cooperation and Development (OECD), but that such a tax could not be optional for internet companies.

“If there is agreement at the OECD, all the better, then we will finally have a global digital tax. If there is no agreement at OECD level, we will restart talks at EU level,” Le Maire said.

He added that new EU Commissioner for Economy Paolo Gentiloni had already proposed to restart such talks.

France pushed ahead with its digital tax after EU member states, under the previous executive European Commission, failed to agree on a levy valid across the bloc after opposition from Ireland, Denmark, Sweden and Finland.

The new European Commission assumed office on Dec. 1.