PARIS — France is a key market for major restaurant chains — from the U.S. It may be surprising that the land of gastronomy is a top priority for fast food chains, but it’s true.
While France’s first McDonald’s opened in 1979, it was another 12 years before the first KFC arrived in 1991. Today, however, “the announcement of a new major restaurant chain has become almost commonplace, sometimes at a rate of less than every two years,” says Bernard Boutboul, president of Gira Conseil, which specializes in food services.
10 years of growth
In late July, Dunkin’, the American coffee and doughnut chain, announced plans to open its first shop in Paris in early 2025. That comes after its direct competitor, Krispy Kreme opened a store in the heart of the French capital, just under the canopy of Les Halles, in December 2023.
Experts trace this acceleration back to 2014. Two years after Burger King’s big comeback — the chain had left France in 1997 due to lack of profitability — Steak ‘n Shake and Chipotle also set up shop in France. Then Five Guys arrived in 2016, Carl’s Jr., in 2018 and finally Popeyes, in 2023.
Others are following the trend. Wendy’s, the United States’ third-largest fast-food chain with 7,000 restaurants worldwide and a reputation for square burgers, told BFM Business at the end of 2023 that it was “actively looking to exploit [its] franchise model to enter various European markets in the future, including France.” Finally, New York-based Shake Shack has been rumored to be coming to France for several years now.
Pop culture
So why are American chains so attracted to the French restaurant market, which is reputed to be a difficult one? Boutboul says the success of McDonald’s, “the country’s number one restaurant,” has a lot to do with it. And in France, the average meal costs between 12 and 13 euros, the highest in the world for McDonald’s.
Finally, the chain has shown its competitors that the French market has enabled it to be innovative. Boutboul notes that it was here “that it changed its sign from a red background to a green one. It was also in France that the McCafé was born, and later rolled out to the rest of the world, as well as made-to-measure salads.”
When these chains arrive in France, they generally raise the bar in terms of quality.
Another explanation for this avalanche of American chains is that they are arriving on conquered ground. “American culture is very popular in France, whether it’s music, films or lifestyle,” says Michael Ballay, Associate Director of Food Service Vision.
“It’s a little bit of American pop culture that I sell through doughnuts,” says Krispy Kreme’s General Manager for France, Alexandre Maizoué. It’s worth noting that doughnuts often appear in American TV shows, such as the police sitcom Brooklyn Nine-Nine, The Simpsons or even the Kardashians’ reality show. From now on, “if you arrive at the office or at home with a box of six doughnuts, you’ll be considered a hero,” Maizoué says.
Quality standards
These chains have also made serious efforts “to capture the French market,” Ballay says, pointing to McDonald’s and KFC’s efforts to source as many of their products as possible in France. “One of France’s special characteristics is its demand for quality, which is one of the highest in the world. But there’s also a need for diversity, and burgers are an ideal medium for creativity.”
In his opinion, when these chains arrive in France, they generally raise the bar in terms of quality. Just look at the reactions of foreigners in Paris when they try the French version of an American chain.
Last but not least, the culinary tradition in France is very much focused on pleasure, and at a time when purchasing power is important, these chains are also becoming a family weekend outing, often less expensive than a traditional restaurant.
Positioning errors
All these indicators are very attractive to the major fast food chains. But not all those that have tried to establish themselves in France have been as successful as McDonald’s, Burger King, Subway or KFC. Quite the contrary, in fact.
Positioning errors have sometimes slowed the development that some of these brands could have hoped for. “When Steak ‘n Shake and Carl’s Jr. arrived France, they positioned themselves in the premium segment,” Boutboul says. Yet, as early as 2015, McDonald’s developed its highly successful signature range to counter them.”
The French market remains a benchmark for American fast-food giants.
By contrast, Five Guys, former U.S. President Barack Obama’s favorite burger, is in the most expensive fast food category in France: a cheeseburger with fries and no drink costs almost 15 euros, Boutboul notes: “But they’ve managed to establish themselves because they bring something that the others don’t: total customization. They don’t have a recipe; it’s the customer who chooses what goes into his burger.”
The arrival of Starbucks in 2004 has even become a business school example in of the error of transposing a product from one market to another. At the time, French people still preferred their coffee black and drank it on the spot. That has slowed the company’s development, although the chain has adapted, opening stores that are larger on average than in the rest of the world, and where customers can sit down.
Risk of saturation
There is limited room for new restaurant chains, Boutboul says, adding that “the risk of saturation of the French market is already well underway.” He’s not sure that the average French person can tell the difference between two fast-food burgers.
Locations, too, are becoming increasingly expensive, especially at the rate at which established chains are expanding. Burger King went from 222 locations in 2019 to 515 last year, according to figures from Food Service Vision. At the same time, KFC has grown from 260 locations five years ago to 363 by the end of 2023, including at least 40 new ones in the last year alone. A dazzling acceleration in line with the group’s strategy.
The French market remains a benchmark for American fast-food giants.
By contrast, McDonald’s, which already has a strong presence in France, with 1,490 outlets in 2019, will have just 70 more by 2023.
“This shows a certain saturation,” Ballay says. All the more so, as French chains have emerged that want to develop along the same lines, including G La Dalle, Point B and O’Tacos. Or those who, like Subway, intend to add hundreds of outlets over the decade.
Nevertheless, the French market remains a benchmark for American fast-food giants. As Frank Sinatra sang, “If I can make it there, I’m gonna make it anywhere.”
