Taco Bell to hit China - Company News - Brief Article - Statistical Data Included

Eurofood, Feb 14, 2002

Tricon Global Restaurants is planning to open its first Taco Bell outlets in China, selling burritos and guacamole to the world's most populous country after its first Asian effort flopped in Singapore two years ago.

Tricon, which counts China as its fifth-largest market outside the US, will open its first Taco Bell restaurant in Shanghai this year.

The company's China business grew by more than 20% last year, to 660 Kentucky Fried Chicken (KFC) and Pizza Hut outlets.

Tricon eventually hopes to own more outlets in China than the 5 500 it has in the US.

PATCHY RECORD

However, western fast food chains have a patchy record in China. Allied Domecq withdrew from selling doughnuts in China in March 2000, closing its seven outlets in Beijing, although Baskin-Robbins ice cream outlets have done well.

The Singapore Taco Bell outlets failed because enchiladas and tacos could not compete with the city-state's range of Malay, Chinese and Indian cuisine.

Tricon closed its two Taco Bell outlets in Singapore in 2000 and now sells nachos through its other eateries.

THRIVING

However, other chains are thriving in China. McDonald's now has over 410 outlets throughout the country.

Starbucks has also opened 38 gourmet coffee shops in China in two years, including one in Beijing's Forbidden City, the old imperial palace.