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Kfc in China

In: Business and Management

Submitted By hoishan7
Words 2875
Pages 12
Hoi Shan Wu
Prof. Dennis Lee
Doing Business in China
16 May 2017

KFC in China

As China develops the pace of life has gotten quicker. The Chinese people’s demand for fast food service with good hygiene has grown due to fit their busier lifestyle. An analyst from China Venture Group, Wan GE, said that fast-food has become the first choice for 85% of Chinese city residents when eating out. (Hu and Chen) The fast-food industry in China is fast growing with an 11.6% growth from 2010 to 2015. (Fast-Food Restaurants in China: Market Research Report)
Kentucky Fried Chicken (KFC) a subsidiary of YUM! Brands, was the first quick-service restaurant (QSR) to enter China in 1987, and remains China’s number one QSR today with more than 5000 restaurants in over 1100 cities. (Yum! Restaurants in China)
KFC started as a joint venture company; 60% stake held by KFC, 27% by the Beijing Tourist Bureau and 13% by Beijing Food Production. In 1988, Bank of China bought 25% of the venture, diluting KFC to 51% of shares. The first KFC was opened in Beijing, Qianmen, five minutes away from Tiananmen square. (Qingfen)
When KFC first entered China, it was a great success. It was an eye-opener into American cuisine and culture. Chinese consumers had the perception that anything from the west is the best; since KFC is from the west it was the best.
Chicken is the second preference of meat followed by pork in China. Naturally Chinese customers loved KFC’s fried chicken not only because of the product, but also the novel service and environment that was different from what they were accustomed to. Many Chinese at the time never experienced such great customer service and environment before. KFC was not affordable to most of the population at the time. It was a place where people would spend money on for special occasions. But due to the consistency and high quality standard provided, the...

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