Dive Brief:
- Texas Chicken, the overseas arm of Church’s Texas Chicken, has signed a deal with Deke Shengtang to develop at least 600 restaurants across China over the next few years, according to a press release.
- The first restaurant in the country will open in Shanghai this summer.
- This is the largest international development agreement in the company’s history and bolsters the chain’s efforts to boost its international presence. China will be the chain’s 27th international market.
Dive Insight:
Texas Chicken, Church’s brand for international markets, has gained significant momentum globally, last year it announced a plan to open 900 global units in the near future. The brand followed that up with new openings across Europe and other markets last year. Texas Chicken and Church’s have over 1,500 units globally, and the international agreements announced last year, combined with its 600-store China commitment, will double its footprint over time.
“This is more than growth. It's a defining moment for our brand, said Roland Gonzalez, CEO of Church's Texas Chicken and Texas Chicken. “China is one of the most dynamic and influential consumer markets in the world.”
Several other chains have made big bets on China, recently. Subway signed a deal with a local operator in Mainland China in 2023 to develop 4,000 units over the next two decades. Papa Johns is in the midst of opening over 1,350 units with FountainVest Partners by 2040, though FountainVest may be looking to sell the brand’s operations. Last year, Restaurant Brands International entered a joint venture with CPE to expand Burger King in China from 1,250 units to 4,000 by the end of 2035. Starbucks sold a majority stake in its China business to Boyu Capital, which plans to grow the chain from 8,000 units to 20,000 locations.
A bulk of Church’s development pipeline, roughly 80%, is currently for international units, but Gonzalez previously told Restaurant Dive that that gap will narrow over time as it continues to build momentum in the U.S. with new and existing franchisees. The company’s domestic average unit volume has improved by about $250,000 over the past few years, and several existing franchisees are remodeling their stores and seeing sales improve.
As of 2024, Church’s had 873 stores in the U.S., but that marked a 127-unit decline since 2022 when it had 1,000 units, according to the chain’s 2025 franchise disclosure document. In 2024, franchisees opened seven units, and the brand projected 34 franchisee openings in 2025.
