expansion

It’s expensive to be a tenant in California. Will Proposition 10’s rent control expansion help?

In less than five weeks, California voters will decide on Proposition 10, a ballot initiative that would allow cities and counties across the state to expand rent control.

For the record:

2:40 p.m. Oct. 3, 2018An earlier version of this article said that California has 9.5 million renters. California has 9.5 million renters who are burdened by high rents.

Supporters of the measure say it will offer relief for tenants during a time of unprecedented housing affordability problems in California. Opponents contend it will stymie housing construction — the levels are already low — and further increase costs.

Here’s a rundown of some of the difficulties renters face and how Proposition 10 would affect them and broader affordability issues.

Just how dire is the situation for renters in California?

Very. Nine and a half million renters — more than half of California’s tenant population — are burdened by high rents, spending at least 30% of their income on housing costs, according to a recent analysis of U.S. census data by UC Berkeley’s Haas Institute for a Fair and Inclusive Society.

Rents have jumped since the end of the last recession as many areas of the state have seen strong job growth but little housing production. In Los Angeles, the median one-bedroom rental is $2,370, according to real estate website Zillow — an increase of 43% over the last eight years. Similar rent hikes have hit San Francisco and the state as a whole.

Rents in California have far outpaced rents in the rest of the country. Nationwide, the median one-bedroom rent is $1,299, according to the Zillow data, increasing 25% over the same eight-year period.

High housing costs have left millions of Californians poor. Nearly 1 in 5 California residents lives in poverty when housing and other costs of living are considered, helping give the state the distinction of having the nation’s highest poverty rate.

As economic pressures on renters have increased, tenant activists have ramped up their promotion of rent control as a way to hold down costs.

Does rent control help with housing affordability?

Economists of different political stripes rarely agree on much. But there’s consensus, even among liberal economists, that rent control doesn’t help with housing affordability.

Economists generally believe that when government limits the price landlords can charge for housing, there will be fewer houses produced, which in turn drives up prices.

“When you have a price ceiling, it induces a shortage,” said Christopher Palmer, an MIT economist and coauthor of a study on rent control in Cambridge, Mass. “The common wisdom is that rent control reduces the quantity and quality of available housing.”

Instead of rent control, Palmer said, economic research contends the primary solution to housing affordability problems is to build lots more homes and have the new supply force prices down.

But what about California tenants who are struggling now?

By one estimate, developers in California need to build an average of about 320,000 new homes a year to address the state’s shortage and make a major dent in affordability problems — a rate roughly triple the current pace of construction. The state’s nonpartisan Legislative Analyst’s Office said the state would need to increase subsidies by billions of dollars a year to finance enough low-income housing for those most in need.

But these goals will be very hard to achieve, and some researchers say rent control is necessary to protect tenants from the continued threat of rising prices. The UC Berkeley Haas Institute report contends that rent control is the only way cities and counties can keep costs down cheaply and immediately.

“This is really the one thing that can be implemented most quickly,” said Nicole Montojo, a coauthor of the report. “The building is not going to happen fast enough. It’s just not possible.”

Cities and counties can also tailor rent control rules to limit negative consequences for new construction and other potential downsides, said Manuel Pastor, a sociology professor at USC and author of a forthcoming review of existing rent control research.

“For the life of me, I can’t think why you would give up rent stabilization as a tool given the extent of the crisis,” Pastor said.

How would Proposition 10 work? And what is Costa-Hawkins?

Fifteen California cities have some form of rent control now. But local governments are hamstrung when it comes to implementing most new rent control policies because of a 1995 state law, the Costa-Hawkins Rental Housing Act.

That law restricts city and county rent control efforts in three ways. Local governments are not allowed to:

  • Implement rent control on single-family homes.
  • Take away the right of landlords to charge what they want for apartments after a rent-controlled tenant moves out.
  • Control rents on buildings constructed after 1995. The law also locked into place rules in cities with rent control when Costa-Hawkins passed. For instance, Los Angeles ties rent hikes to inflation on apartments built on or before Oct. 1, 1978, and is prohibited from applying its provisions to more recently constructed properties.

The 1995 law chilled cities’ and counties’ passage of new rent restrictions. In 2016, Mountain View and Richmond in the Bay Area became the first communities to implement new rent control rules in more than three decades.

Proposition 10 does not change existing rent control policies — it simply repeals Costa-Hawkins. So passage of the initiative would not, in most cases, immediately lead to new rent control rules. Instead, it would allow cities and counties to craft policies without restrictions.

Proposition 10 also would be hard to undo in the future. The initiative includes a provision that says any effort to implement statewide restrictions on rent control would have to be approved by California voters. The authors of Proposition 10 say they wrote the measure that way to prevent state lawmakers from undermining it. But the provision has faced criticism from those who contend any negative consequences from the measure would be very hard to fix.

How has rent control affected San Francisco?

Researchers at Stanford recently published a detailed examination of rent control’s effects in San Francisco, where the policy is restricted to apartments built on or before June 13, 1979.

Among the biggest beneficiaries: longtime tenants who would have been forced out of the city without renter protections. The study found rent control especially helped older and black and Latino tenants from being displaced.

Landlords who weren’t able to charge higher prices lost out. The study also found that landlords responded to rent control in San Francisco by converting their rental properties to owner-occupied condominiums, which decreased available apartments in the city and increased prices overall. The research contends that the system added to gentrification in San Francisco by increasing the number of older rental properties being made into units that were typically sold to wealthier residents.

“It may seem like a solution in the short run, but in the long run it really hurts renters and the rental market,” said Rebecca Diamond, an assistant professor of economics at Stanford and the study’s lead author.

Rent control supporters believe the study unfairly blamed the system for fueling gentrification and said the city could have worked to lessen some of the negative effects.

“Even though the costs they found are substantial, those costs could have been contained by the city of San Francisco having tighter controls on condominium conversions,” said Stephen Barton, a coauthor of the UC Berkeley Haas Institute study.

If Proposition 10 passes, what happens next?

Expect a lot of new local battles over rent control.

Los Angeles Mayor Eric Garcetti has said he wants to expand rent control in the city if Proposition 10 passes. And Berkeley voters will decide in November whether to bolster the city’s own rent control policies — the new rules would take effect at the same time as Proposition 10.

Fights at the city and county levels are likely to be long and contentious. Mountain View, which in 2016 passed a limited version of rent control that’s allowed under existing state law, has had a continuous struggle over rent control policies for the last three years with no end in sight.

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Downey’s Space Center breaks ground on museum expansion

When I broke into journalism years ago as a fledgling Whittier-based high school sports reporter, one of my favorite side hobbies was asking locals what made their city famous.

Downey was always an interesting test case.

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Some said Downey’s claim to fame is the oldest standing McDonalds, or the Stonewood Mall, with some students boasting the rivalry between Downey and Warren high schools. Some have also cited the title of the “Mexican Beverly Hills,” which I and colleague Gustavo Arellano have always considered more appropriate for Whittier.

What wasn’t mentioned enough about Downey, particularly among the high school-aged students I spoke with, was the city’s ties to the Space Shuttle program. It was somewhat remarkable given the city’s “Home of the Apollo” nickname.

Downey’s reputation, especially among its younger residents, may reset soon thanks to a groundbreaking this Monday to announce the latest upgrade to the Columbia Memorial Space Center, a space museum that opened in 2008.

Benjamin Dickow, the center‘s president and executive director, spoke with The Times about what to expect Monday and beyond.

What’s happening Monday?

Astronaut Garrett Reisman, former Rockwell International and Boeing employees and area dignitaries will take part in a groundbreaking for an about 40,000-square-foot expansion to the existing museum.

The museum’s centerpiece will be a 122-foot-long, 35-foot-tall Downey-made space shuttle mock-up named the “Inspiration,” which is not available yet for public display.

The event begins at 10 a.m., rain or shine, and is located at 12400 Columbia Way in Downey.

For more information, check out https://www.columbiaspacescience.org/

This is a rendering of the completed front entrance of the Columbia Memorial Space Center in Downey.

A rendering of the completed front entrance of the museum.

(Nadia Gonzalez, on behalf of the Columbia Memorial Space Center)

Space Center changes and expansion

Dickow said the center was in the middle of completing the first of three phases, to be finished before the L.A. Olympics.

“Once the major construction really gets going, it’s about an 18-month process,” he said, “but if something happens with the shuttle, it’s going to add some time.”

Part of the first phase began in October 2024, when the partially-covered wood and plastic model was paraded down Bellflower Boulevard from a city maintenance yard to a temporary housing unit.

The expansion, known as the Downey Space Shuttle Exhibit and Education Building, would include a new two-story, 29,000-square-foot space shuttle museum, event courtyard, STEM building and courtyard, children’s outdoor classroom, pavilion, lawn and other amenities.

The space shuttle mock-up is also undergoing a “process of rehab and refurbishment,” according to Dickow, but is in “generally great shape.”

“The main work is getting it ready for the public, where visitors will be able to enter and get a sense of what it’s like inside a space shuttle,” Dickow said.

Astronauts would typically access the flight deck, mid-deck and crew compartment through a hatch, according to Dickow.

According to renderings, guests will instead enter through a much more accessible stairwell that puts visitors inside a cargo bay.

This is a rendering of the space shuttle mock-up, dubbed "Inspiration, in the center of the museum expansion.

A rendering of the space shuttle mock-up, dubbed “Inspiration,” at its place in the center of the museum expansion.

(Nadia Gonzalez, on behalf of the Columbia Memorial Space Center)

What is the mock-up and what’s its tie to Downey?

The shuttle mock-up’s history with Downey spans decades.

North American Rockwell International, now part of Boeing, built the prototype in 1972 at its Downey facility. The space shuttle became the world’s first reusable winged orbiting spaceship.

In total, 12,000 workers developed and manufactured the shuttle at the program’s peak on a sprawling 120-acre campus.

From April 12, 1981, through July 21, 2011, NASA fleets of shuttles flew 135 missions and helped build the International Space Station.

One of those shuttles — Endeavour — was hauled into the middle of its future home, the Samuel Oschin Air and Space Center at Exposition Park, in January 2024.

That museum is also expected to be open before the Olympics.

“This is going to be something that the L.A. area will be able to show off to people from around the world and I want to make sure we’re a part of that,” Dickow said. “Downey and Southeast L.A. sometimes don’t get a lot of the spotlight and this is something that we’ll be able to put out there.”

The week’s biggest stories

Pedestrians cross the street in downtown Los Angeles under light rain on Friday.

Pedestrians cross the street in downtown Los Angeles under light rain on Friday.

(Eric Thayer / Los Angeles Times)

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For your weekend

Aerial view of Skyline Pitch, soccer complex located atop a parking structure at the Americana at Brand.

(Robert Gauthier/Los Angeles Times)

Going out

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A selection of the very best reads from The Times’ 143-year archive.

Have a great weekend, from the Essential California team

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June Hsu, editorial fellow
Andrew J. Campa, weekend writer
Karim Doumar, head of newsletters

How can we make this newsletter more useful? Send comments to [email protected]. Check our top stories, topics and the latest articles on latimes.com.

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One of the UK’s most popular holiday parks reveals mega £50million expansion

Aerial view of Vauxhall Holiday Park with mobile homes, a river, and a town leading to the sea.

TWO holiday parks are getting a multi-million pound upgrade with some very exciting new additions.

Parkdean currently has 65 resorts across the UK, and is one of the most popular holiday parks in the country.

Two Parkdean resorts are getting a massive makeoverCredit: parkdeanresorts.co.uk
Vauxhall Holiday Park and Highfield Grange are both getting some new additionsCredit: parkdeanresorts.co.uk

And new plans have revealed a massive £50million upgrade across two of them.

Both Vauxhall Holiday Park in Great Yarmouth and Highfield Grange Holiday Park in Essex.

This includes a new sports bar concept called Hat-Tricks.

Not only will there be sports such as shuffleboard and darts, but it will also serve classic food and drink options.

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Indoor adventure golf and Bear Grylls escape rooms are also new additions to the parks.

Other upgrades include an expanded Tots Zones, to both the indoor and outdoor play zones, as well as the high rope courses.

The upgrades will be ready for the new season in spring 2026.

Parkdean’s chief executive Steve Richards said: “In 2026 we will be investing approximately £50m in our holiday parks to improve facilities, elevate guest experience, and keep families coming back to these fantastic locations throughout the UK.

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“Next year guests will see Highfield Grange and Vauxhall transformed with major investments to upgrade and diversify the on-park activities.

“We are excited to welcome guests to see all that these parks have to offer next year.”

More than three million people stayed at a Parkdean resort in the UK last year.

And earlier this year, nine of the Parkdean resorts launched a brand new all-inclusive deal.

It’s not the only holiday park getting a major expansion.

The Sun’s Digital Features Editor went to Parkdean’s Trecco Bay site.

She said: “We’d started our long weekend on a high — literally — when my four-year-old son Adam gave us his best impression of Buzz Lightyear as he bounced and flew into the sky on a bungee trampoline.

“Our daughter, Anna, excitedly made a beeline for the Arts And Crafts activity den — which turned out to be the perfect antidote to a busy and andreline-fuelled morning.

“What’s really impressive about Parkdean is the sheer choice of things to do, and those who know exactly what activities they wish to try can book and manage them online, six weeks in advance of their stay.

“But you don’t need to panic if you’re not up for plotting out an itinerary as so much is still available for last-minute visits.

“And if you are on a budget, you won’t be short of freebie attractions either including an adventure playground, pirate-themed crazy golf and an outdoor splash park.”

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Haven’s Kent Coast Holiday Park near Rochester is getting a new £10million swimming pool and water flume.

And Haven recently welcomed new Wetherspoons pubs at a number of their resorts, the first holiday park in the UK to do so.

The upgrades will be in time for spring 2026Credit: parkdeanresorts.co.uk

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Paul Tagliabue, NFL commissioner who led expansion, dies at 84

Paul Tagliabue, who helped bring labor peace and riches to the NFL during his 17 years as commissioner but was criticized for not taking stronger action on concussions, died Sunday from heart failure. He was 84.

NFL spokesman Brian McCarthy said Tagliabue’s family informed the league of his death in Chevy Chase, Maryland.

Tagliabue, who had developed Parkinson’s disease, was commissioner after Pete Rozelle from 1989 to 2006. He was elected to the Pro Football Hall of Fame as part of a special centennial class in 2020. Current Commissioner Roger Goodell succeeded Tagliabue.

“Paul was the ultimate steward of the game — tall in stature, humble in presence and decisive in his loyalty to the NFL,” Goodell said in a statement. “I am forever grateful and proud to have Paul as my friend and mentor. I cherished the innumerable hours we spent together where he helped shape me as an executive but also as a man, husband and father.”

Tagliabue oversaw a myriad of new stadiums and negotiated television contracts that added billions of dollars to the league’s bank account. Under him, there were no labor stoppages.

During his time, Los Angeles lost two teams and Cleveland another, migrating to Baltimore before being replaced by an expansion franchise.

Tagliabue implemented a policy on substance abuse that was considered the strongest in all major sports. He also established the “Rooney Rule,” in which all teams with coaching vacancies must interview minority candidates. It has since been expanded to include front-office and league executive positions.

When he took office in 1989, the NFL had just gotten its first Black head coach of the modern era. By the time Tagliabue stepped down in 2006, there were seven minority head coaches in the league.

In one of his pivotal moments, Tagliabue called off NFL games the weekend after the terrorist attacks of Sept. 11, 2001. It was one of the few times the public compared him favorably to Rozelle, who proceeded with the games the Sunday after John Kennedy was assassinated in 1963. A key presidential aide had advised Rozelle that the NFL should play, a decision that was one of the commissioner’s great regrets.

Tagliabue certainly had his detractors, notably over concussions. The issue has plagued the NFL for decades, though team owners had a major role in the lack of progress in dealing with head trauma.

In 2017, Tagliabue apologized for remarks he made decades ago about concussions in football, acknowledging he didn’t have the proper data at the time in 1994. He called concussions “one of those pack-journalism issues” and contended the number of concussions “is relatively small; the problem is the journalist issue.”

“Obviously,” he said on Talk of Fame Network, “I do regret those remarks. Looking back, it was not sensible language to use to express my thoughts at the time. My language was intemperate, and it led to serious misunderstanding.

“My intention at the time was to make a point which could have been made fairly simply: that there was a need for better data. There was a need for more reliable information about concussions and uniformity in terms of how they were being defined in terms of severity.”

While concussion recognition, research and treatment lagged for much of Tagliabue’s tenure, his work on the labor front was exemplary.

As one of his first decisions, Tagliabue reached out to the players’ union, then run by Gene Upshaw, a Hall of Fame player and former star for Al Davis’ Raiders. Tagliabue had insisted he be directly involved in all labor negotiations, basically rendering useless the Management Council of club executives that had handled such duties for nearly two decades.

It was a wise decision.

“When Paul was named commissioner after that seven-month search in 1989, that’s when the league got back on track,” said Joe Browne, who spent 50 years as an NFL executive and was a confidant of Rozelle and Tagliabue.

“Paul had insisted during his negotiations for the position that final control over matters such as labor and all commercial business dealings had to rest in the commissioner’s office. The owners agreed and that was a large step forward toward the tremendous rebound we had as a league — an expanded league — in the ’90s and beyond.”

Tagliabue forged a solid relationship with Upshaw. In breaking with the contentious dealings between the league and the NFL Players Association, Tagliabue and Upshaw kept negotiations respectful and centered on what would benefit both sides. Compromise was key, Upshaw always said — although the union often was criticized for being too accommodating.

Tagliabue had been the NFL’s Washington lawyer, a partner in the prestigious firm of Covington and Burling. He was chosen as commissioner in October 1989 over New Orleans general manager Jim Finks after a bitter fight highlighting the differences between the NFL’s old guard and newer owners.

Yet during his reign as commissioner, which ended in the spring of 2006 after pushing through a highly contested labor agreement, he managed to unite those divided owners and, in fact, relied more on the old-timers who supported him than on Jerry Jones and many of the younger owners.

Tagliabue was born on Nov. 24, 1940, in Jersey City, New Jersey. He was the 6-foot-5 captain of the basketball team at Georgetown and graduated in 1962 as one of the school’s leading rebounders at the time — his career average later listed just below that of Patrick Ewing. He was president of his class and a Rhodes scholar finalist. Three years later, he graduated from NYU Law School and subsequently worked as a lawyer in the Defense Department before joining Covington & Burling.

He eventually took over the NFL account, establishing a close relationship with Rozelle and other NFL officials during a series of legal actions in the 1970s and 1980s.

Tagliabue was reserved by nature and it sometimes led to coolness with the media, which had embraced Rozelle, an affable former public relations man. Even after he left office, Tagliabue did not measure up in that regard with Goodell, who began his NFL career in the public relations department.

But after 9/11, Tagliabue showed a different side, particularly toward league employees who had lost loved ones in the attacks. He accompanied Ed Tighe, an NFL Management Council lawyer whose wife died that day, to Mass at St. Patrick’s Cathedral, a few blocks from the NFL office.

Art Shell, a Hall of Fame player, became the NFL’s first modern-day Black head coach with the Raiders. He got to see Tagliabue up close and thought him utterly suited for his job.

“After my coaching career was over, I had the privilege of working directly with Paul in the league office,” Shell said, “His philosophy on almost every issue was, ‘If it’s broke, fix it. And if it’s not broke, fix it anyway.’

“He always challenged us to find better ways of doing things. Paul never lost sight of his responsibility to do what was right for the game. He was the perfect choice as NFL commissioner.”

Tagliabue is survived by his wife Chandler, son Drew, and daughter Emily.

Wilner and Maaddi write for the Associated Press.

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British Airways to launch gamechanger free perk to ALL passengers as part of mega £7billion expansion

BRITISH Airways passengers will soon be able to stay connected mid-flight without having to pay a penny.

The airline has confirmed that they will be rolling out Starlink WiFi on all of their planes next year.

All passengers will soon be able to use free Starlink WiFi on BA flightsCredit: Alamy
Starlink is owned by Elon MuskCredit: Alamy

Not only will it be available in all cabins, but it will be completely free for all passengers.

The high speed network means passengers will be able to stream video onboard without any lag.

This also includes over remote regions and oceans, a common area where WiFi can often cut out.

BA boss Sean Doyle, British Airways said “Launching Starlink on both our long-haul and short-haul aircraft is game-changing for us and our customers, elevating their experience on board our flights by offering them seamless connectivity from gate-to-gate.

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“Especially on short-haul, this will really differentiate us from our competitors.”

The rollout is part of British Airways’ massive £7billion expansion.

This includes new airport lounges in both Dubai and Miami, with the Sun’s Travel Reporter Cyann Fielding trying out the latter.

Another 15 airport lounges are being upgraded, with 17 new short-haul aircrafts being introduced.

British Airways is also rolling out a new First Class Suite, with its biggest bed yet as well as 32inch screens.

A new app is also being rolled out next year.

Mr Doyle said at the time the app would be similar to an Amazon when it comes to easily being able to book flights.

He explained: “The website’s been around for 22 years. We were leaders in it many years ago and we’d improved it down through the years.

“But we’ve been falling behind and we need to catch up and leapfrog the rest.”

Other inflight upgrades include larger overhead lockers – where suitcases lie on their side rather than flat – and upgraded seats made from Scottish leather.

But British Airways isn’t the first airline to roll out Starlink onboard.

Back in March, United Airlines confirmed that they would be adding the free WiFi service to more than 40 aircraft.

And Qatar Airways confirmed that all passengers will be able to use free Starlink onboard – even FaceTiming a flight attendant to show how fast it will be

BA is currently undergoing as £7billion expansionCredit: Getty

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EU Opens Door to Expansion, Names Ukraine and Montenegro as Front-Runners

The EU’s enlargement commissioner, Marta Kos, commended Montenegro, Albania, Ukraine, and Moldova for their advancements towards EU membership, describing expansion as a “realistic possibility within the coming years” during a session at the European Parliament.

While Montenegro is noted as the most advanced candidate, the commissioner criticized Serbia for slowing reforms and indicated that Georgia is merely a candidate “in name only.” Kos emphasized the need for the EU to prepare for enlargement.

She highlighted Albania’s “unprecedented progress” and Moldova’s rapid advancements despite challenges. Ukraine’s commitment to its EU path and essential anti-corruption reforms was also recognized, particularly against the backdrop of Russia’s invasion and Hungary’s obstacles.

President Volodymyr Zelenskiy echoed this sentiment, urging the EU to take decisive action to eliminate barriers to a unified Europe.

With information from Reuters

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Starbucks sells majority stake in China business as it eyes expansion | Business and Economy News

Starbucks has announced it will sell the majority stake in its Chinese business for $4bn to a Hong Kong-based private equity firm after years of losing market share to local competitors in China.

Starbucks announced the sale on Monday, which will see the firm Boyu Capital take a 60 percent stake in its Chinese retail operations through a joint venture.

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Boyu Capital has offices in Shanghai, Beijing and Singapore, and its cofounders include Alvin Jiang, the grandson of former Chinese President Jiang Zemin, according to the Reuters news agency.

The US coffee giant will retain a 40 percent interest in its China operations while maintaining its ownership of the company’s brand and intellectual property, the company said.

The deal marks a “new chapter” in Starbucks’s 26-year-long history in China, the company said in a statement.

It will also give Starbucks a much-needed injection of funding and logistical support as it tries to expand its business deeper into China, according to Jason Yu, the Shanghai-based managing director of CTR Market Research.

Starbucks has 8,000 locations across China, but it aspires to open as many as 20,000 through its joint venture, the company said in a statement.

“Starbucks used to be a pioneer in coffee in China, where it was probably the first coffee chain in many cities, but this is no longer the case as the local competition already outpaced Starbucks in their expansion,” Yu told Al Jazeera.

Top competitors include homegrown Luckin Coffee, which has more than 26,000 locations worldwide, mostly in China.

Starbucks has historically been concentrated in first- and second-tier cities like Shanghai, Beijing and Shenzhen while Luckin has expanded into much smaller cities.

Luckin has also built a reputation around offering customers much cheaper drinks than Starbucks through its loyalty programme and in-app discounts.

A small Americano coffee at Starbucks costs 30 yuan ($4.21), but at Luckin, the same drink retails on average for about 10 yuan ($1.40), according to Yu.

Olivia Plotnick, founder of the Shanghai-based social marketing company Wai Social, told Al Jazeera that Starbucks has been unable to keep up with competitive pricing and consumer preferences.

“Between domestic players such as Luckin and later Cotti Coffee undercutting Starbucks on price, footprint and flavour fuelled by tech, wider beverage competition from the rise of milk tea brands and delivery platform wars, Starbucks have lost their once very competitive edge,” Plotnick said. By “delivery platform wars”, Plotnick referred to the cutthroat competition between apps for delivery services that drives down prices of goods like coffee.

Starbucks’s joint venture with Boyu Capital will offer the company more capital for investment but also help with logistics, infrastructure and managing commercial property as it opens more storefronts in regional cities, Yu said.

The company is following a familiar playbook used by other international brands in China, he said.

In 2016, after a major food safety scandal, KFC and Pizza Hut owner Yum Brands sold a stake in their China business to the China-based Primavera Capital and an affiliate of the e-commerce giant Alibaba Group, according to Reuters. The China business was later spun off into an independent entity.

In 2017, McDonald’s sold off a majority stake in its China, Hong Kong and Macau businesses to the Chinese state-backed conglomerate CITIC and the private equity group Carlyle Capital although it later bought back some of its business, according to CNBC.

After the deal with CITIC, McDonald’s doubled its outlets in China to 5,500 as of late 2023, CNBC said, and aims to open 10,000 restaurants by 2028.

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