By MA Yue
Popeye’s Louisiana Kitchen, a division of Restaurant Brands International Inc. (RBI), has entered into an arrangement with Tim Horton’s developer, Cartesian Capital Group LLC (CCG), good news for China’s fried chicken fans.
The image of fried chicken in China is primarily formed by KFC, which adopted a Chinese flavor long ago. Popeye’s American menu is often criticized as being too greasy and dry. Seven of the nine Popeye’s restaurants in China were closed on Tuesday, drawing rumors of withdrawal from the country.
Before signing up with CCG, Popeye’s was run by TAB Foods Investments (TFI), which oversees Burger King in China. In a February report, RBI said it was negotiating with TFI over “disputes” which the company was willing to settle for US$100 million (670 million yuan).
CCG has done well with Tim Horton’s. The coffee house not only adjusted its menu but works with local capital like Tencent. But while the coffee industry is on the rise, catering, especially fast food, is not in a good shape. What CCG has taken over is not just the operation of Popeye’s, but a considerable challenge.
