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Boba might have bubbled up (sorry) on nearly every U.S. street corner these days, but there was a time, not so long ago, that U.S. consumers eyed bubble tea with a mix of trepidation and confusion. Once they overcame their initial hesitation, and grew accustomed to the unique texture, boba drinkers became a powerful force and a novel retail market. Its emergence seemingly is inspiring other food retailers to pursue a similar path and introduce unfamiliar recipes and presentation styles to a willing consumer public.

Many of these initiatives involve Chinese sellers. China’s food and beverage market has become largely saturated and defined by price competition. The competition among large-scale suppliers to provide the most affordable product pricing has left them facing thin margins and struggling to survive. In need of a new source of demand, U.S. consumers’ evolving palates seem to present a ready opportunity.

Accordingly, Luckin Coffee stores have popped up throughout New York City, as have HeyTea shops. The tea chain also has piloted stores in several additional markets; two locations in Houston, Texas, have reported notable success. The Wallace restaurant chain opened its first U.S. location in California, positioning its popular fried chicken as a tasty and more affordable alternative to existing fast-food chicken offerings. Although the Sichuan-based hot pot company Haidilao has had a presence in the United States since 2013, it more recently has been pushing for an aggressive expansion across the country.

As they undertake such efforts, Chinese food retailers encounter several notable regulatory barriers though. If they hope to go public in international markets, they must first seek approval from lawmakers in Beijing, which involves a formal, complex regulatory application and in-depth consideration.

Having obtained such approval, they also must decide whether and how to adjust their offerings and business models as they enter diverse regional markets in the United States. For example, Haidilao has defined different sets of expected behavior and services to be provided to Chinese versus U.S. customers. Retail interactions in China tend to be interactive, so staff are expected to provide lively entertainment, such as by dancing or offering to peel shrimp in front of customers. For diners waiting for tables, the restaurant provides free nail services. But U.S. consumers tend to appreciate stricter social boundaries and personal space, so staff working in U.S. locations are instructed to provide clear English instructions and minimize any service acts that might seem obtrusive.

In addition to service standards, these retailers adjust their menu offerings, such as by reducing spicy ingredients and expanding red meat options for U.S. diners. Wallace similarly swaps out lettuce with pickles for the chicken sandwiches it sells in the United States. Thus, we might view the first people to try bubble tea as open-minded experimenters, but Chinese food retailers increasingly are making it easier for U.S. consumers to try something just a little new.

Discussion Questions

1. What types of considerations and preferences should Chinese food retailers take into account when adjusting their offerings to appeal to U.S. consumers?
2. Should Chinese restaurant chains target multiple foreign markets, or is the United States the most promising market? Justify your answer.

Sources: Daisuke Wakabayashi and Joy Dong, “Get Ready, America: Here Come China’s Food and Drink Chains,” The New York Times, December 1, 2025; Selena Li, “Tea Company Chagee Gains Chinese Approval to List in US,” Reuters, March 6, 2025; Shafaq Patel, “Sweet Times: HeyTea,” Axios Houston, January 7, 2026.