PepsiCo’s flagship snack brand, Lay’s, has officially launched its first immersive dining concept in China. Located in Shanghai’s Xintiandi district, the Lay’s Potato Restaurant represents a strategic pivot for the company as it seeks to expand beyond traditional retail and into the away-from-home channel.
The limited-time brand experience reimagines the potato through menu innovation and cross-industry collaborations, serving as a high-visibility test for experiential consumption in a key global market.
Experience led consumption
The launch aligns with evolving consumer priorities in China, where younger demographics are increasingly prioritizing tangible, shareable experiences over simple product ownership. By moving from the snack aisle to a full-service dining environment, PepsiCo is positioning Lay’s to capture new meal occasions that were previously untapped by the brand.
According to Nina Mu, Chief Marketing Officer for Greater China Foods at PepsiCo, Shanghai serves as an essential test-and-learn market. The restaurant concept allows the company to explore how culinary creativity and cultural partnerships can inform brand-building strategies across different geographies.
Culinary innovation and menu diversification
The restaurant focuses on a farm-to-table narrative that showcases the versatility of the potato as a primary ingredient. The menu utilizes a fusion of Eastern and Western culinary techniques to transform traditional potato chips and premium potatoes into diverse offerings suitable for various times of day.
Highlights of the menu innovation
Chef Collaborations: Lay’s partnered with Michelin-starred chef Francesco Bonvini and chef Tian Shuai to develop a limited-time menu that traces the potato’s lifecycle from planting to the finished product.
Exclusive Formats: The restaurant introduced four Shanghai-exclusive mashed potato dishes, blending creamy textures with diverse ingredients such as strawberry, mango, shrimp, and octopus.
Meal Occasions: The offerings range from light bites and signature beverages to hearty mains, moving the brand into the lunch, dinner, and social gathering categories.
Collaborative marketing and spatial storytelling
To elevate the brand experience beyond the food itself, the restaurant incorporates multi-sensory design and fashion partnerships. This approach strengthens the connection between the brand and culture-driven consumers who value aesthetic and interactive environments.
The facility features art installations created in partnership with fashion brand 8ON8, including a distinctive façade that depicts the industrial transformation of potatoes into chips. The interior design utilizes spatial storytelling, with the first floor dedicated to texture-based chip design and the second floor focusing on the farm-to-factory journey.
Market implications and retail integration
The project also includes a dedicated retail zone featuring limited-edition Lay’s merchandise. This includes potato-inspired packaging, accessories, and co-branded fashion items, allowing the brand to extend its reach into the lifestyle category.
As a flagship within PepsiCo’s convenient foods portfolio, the Lay’s Potato Restaurant serves as a new benchmark for brand experience innovation. The insights gained from this Shanghai location are expected to influence how PepsiCo engages with younger consumers and develops new touchpoints in the away-from-home sector globally.
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