PepsiCo has opened the first Lay’s potato-themed restaurant in Asia, launching the concept in Shanghai’s Xintiandi district as the brand continues to expand beyond traditional snack retail.

The Shanghai opening is Lay’s second restaurant globally, following the inaugural launch in Madrid in March.

Located in a two-storey building in the centre of Xintiandi, the restaurant combines Lay’s trademark yellow branding with the district’s restored 1920s Shikumen architecture. According to the source material, the exterior includes installations created with Shanghai fashion label 8ON8 that depict the potato’s journey from soil to snack.

Inside, the restaurant’s design carries Lay’s visual identity throughout the venue, while the menu has been curated by chefs Francesco Bonvini and Tian Shuai. The offering focuses on potato-based dishes that reinterpret Lay’s flavours, including a Shanghai-exclusive creamy mashed potato paired with tropical fruit and seafood, alongside potato-inspired beverages.

The concept positions Lay’s within a growing group of consumer brands using hospitality and retail experiences to extend brand presence beyond core product categories. The source material notes similar branded concepts have previously been explored by Taco Bell, Nutella, Cheetos, KFC and Oreo.

According to the original article, the rationale behind such moves is that in mature consumer categories, where product differentiation can be limited and shelf competition remains intense, physical experiences can help brands attract attention, generate media visibility and strengthen cultural relevance.

For Lay’s, the Shanghai restaurant represents the brand’s latest effort to test how hospitality-led experiences can support broader brand positioning in a competitive consumer market.