PepsiCo tests new brand model with Lay’s restaurant

Lay’s has launched its first Potato Restaurant in China, opening a limited-time experiential space in Shanghai’s Xintiandi district as part of a broader push by PepsiCo to expand beyond traditional snacking occasions.

The concept blends food, design, and brand storytelling to create an immersive environment aimed at engaging consumers in the away-from-home channel, while positioning Lay’s within new dining contexts.

Experiential dining targets younger consumers

The restaurant reflects a shift in consumer behaviour in China, where demand for experience-led consumption continues to grow. The space is designed to encourage social interaction and sharing, combining themed interiors with a menu inspired by Lay’s products.

Nina Mu, chief marketing officer, Greater China Foods, PepsiCo: "As part of PepsiCo’s growth strategy, we’re connecting our brands to the food experiences consumers are increasingly seeking—creating new ways to enjoy Lay’s beyond traditional snacking and helping unlock new occasions in the away-from-home channel. Shanghai is an exciting test-and-learn market for us, and this restaurant brings together culinary creativity, culture and partnerships in a way that can inform how we build brands across geographies."

Menu innovation centres on the potato

The restaurant’s menu reinterprets potato-based dishes using a mix of Eastern and Western culinary techniques. Offerings range from main meals to desserts and beverages, with a focus on versatility and flavour combinations linked to the Lay’s brand.

Collaborations with chefs Francesco Bonvini and Tian Shuai have resulted in a limited-time menu that traces the ingredient’s journey from farm to finished product. The concept also introduces Shanghai-exclusive mashed potato dishes combining sweet and savoury ingredients.

Design and partnerships extend brand storytelling

The venue incorporates interactive design elements and spatial storytelling to reinforce the brand narrative. 8ON8 collaborated on visual installations, while interiors feature materials and displays inspired by potatoes and chip production.

A retail area within the restaurant offers limited-edition merchandise, including co-branded fashion items and packaging, extending the experience beyond the physical space.

Testing new brand engagement models

The Lay’s Potato Restaurant serves as a pilot for experiential marketing approaches that connect food, culture, and retail. PepsiCo is using the initiative to explore how its brands can operate in lifestyle and dining environments, particularly in markets where consumer engagement is increasingly driven by experiences.

The concept highlights how snack brands are expanding into new formats to build deeper connections with audiences and create additional consumption occasions.

www.pepsico.com

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