China won over KFC.

According to , one of the world's largest restaurant chains has over 29,000 locations and opens a new outlet every three and a half hours.

Although the brand initially gained popularity in the U.S., most of its current growth is occurring in China.

KFC China marked the milestone of its 10,000th store in Hangzhou, with the U.S. having approximately 4,300 locations.

In China, a typical menu goes beyond just chicken and can consist of dishes such as rice congee, steamed dumplings, and egg tarts.

The Chinese economy has faced challenges such as lockdowns due to Covid-19, health concerns about Chinese consumers, and uncertainty about future growth plans.

What factors contributed to KFC's success in China compared to other fast food chains like Starbucks and Taco Bell, and can the business continue to grow? CNBC interviewed Joey Wat, CEO of Yum China, in Hangzhou, China, to learn more.