McDonald’s is better than Chinese food (that’s why it’s getting more expensive)

Trump’s observation that Chinese restaurants in America outnumber the five largest fast-food chains combined is striking but the real story isn’t just the numbers. It highlights a profound structural and cultural dichotomy: massive scale through corporate standardization (McDonald’s et al.) versus thousands of independent, “open-source” style mom-and-pop operations that fragment and replicate easily.

This pattern is not unique to Chinese restaurants in the US it reflects how markets developed across much of Asia.

Partial liberalization created the conditions: In many Asian economies, only the lowest tier of the value chain (food service, restaurants, small retail) was truly opened up, while higher tiers major distributors, national supermarket chains, food processors, and key suppliers — often remained monopolized or tightly oligopolized.

Extremely low barriers to entry in F&B: Minimal capital, simple setups, and family labor made starting a restaurant accessible.

• DIY entrepreneurial mindset: A widespread cultural belief that “if someone else can do it, I can too” drives people to reverse-engineer recipes and business models, leading to endless fragmentation rather than brand consolidation.

• Imitation as a feature, not a bug: Copying is normalized because people see success as mastering a “formula” they can replicate themselves, which keeps margins thin and competition intense.

Fragmented “open-source” ecosystem: Instead of a few big Chinese chains, you get tens of thousands of independent operators adapting American-Chinese cuisine locally — producing aggregate scale without centralized control.

• Contrast with Western chains: McDonald’s and similar brands win through obsessive standardization — consistent taste, hygiene, operations, and supply chains worldwide.

This level of reliability often beats the average mom-and-pop in hygiene and predictability, even if not always in gourmet quality.

This dynamic explains both the incredible variety and proliferation of Asian eateries abroad, as well as the challenges of building scalable empires in those environments. It’s economics, culture, and history all on your plate.