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Analysis of Why Kfc Is More Successful Than Mcdonald in China

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Analysis of Why KFC is more successful than McDonald in China

Analysis of Why KFC is more successful than McDonald in China

Kentucky Fried Chicken (KFC) is a chain of fast food restaurants based in Kentucky in the United States. KFC is famous for its fried chicken and the sales revenue is ranking number seven in American Market (Figure 1). McDonald's Corporation is the largest chain of hamburger fast food restaurants in the world and also the largest in American, serving more than 58 million customers daily (Breitbart, 2009). But in China, KFC and McDonalds are in a totally different situation. KFC is the most popular restaurant in China and McDonalds, although popular either, but is performing much less than KFC. This contrast is not a miracle and everything happens for a reason, this report is going to analyze the reasons for KFC is more successful than McDonald in China.

Figure 1. KFC and McDonalds in American

Contrast |American Market|
|McDonalds|KFC|
Revenue|2003|$22.1 billion|$4.936 billion|
|2002|$20.3057 billion|$4.86 billion|
RestaurantsNumber|2003|13,609|5,524|
|2002|13,491|5,472|
Ranking inAmerican Market|2003|No.1|No.7|
Source: The data are adapted from “KFC and McDonalds: A huge difference in China”, retrieved from http://finance.people.com.cn/GB/3799268.html

Figure 2. KFC and McDonalds in China

Contrast|Chinese Market|
|McDonalds|KFC|
Revenue (2003)|¥5.3 billion|¥9.3 billion|
Revenue increase in 2003|Increase 17.78% compare to the year 2002|Increase 31% compare to the year 2002|
The number of Restaurants in 2004|About 600|1200|
Average Revenue per restaurant in 2002|¥6 million|¥8 million|
Expanded rate|25% ( 2002- 2004)|>70% (1997- 2004)|
Source: The data are adapted from “KFC and McDonalds: A huge difference in China”, retrieved from http://finance.people.com.cn/GB/3799268.html...

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