KFC Reaps 2 Billion Yuan Annually from Chinese Mainland

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Last updated at: (Beijing Time) Thursday, November 29, 2001

KFC Reaps 2 Billion Yuan Annually from Chinese Mainland

Kentucky Fried Chicken (KFC), a U.S.-based fast food giant, earned at least two billion yuan (about US$250 million) from the Chinese mainland per year since the end of 1999, according to the State Statistical Bureau.

Kentucky Fried Chicken (KFC) earned at least two billion yuan (about US$250 million) from the Chinese mainland per year since the end of 1999, according to the State Statistical Bureau.

Tricon Global Restaurants Inc., a U.S.-based fast food giant, said that it has opened more than five hundred KFC chain stores in China.

And over 99 percent of KFC stores in China have made a handsome profit, according to J. Samuel Su, president of Tricon in China.

In fact, western fast food restaurants now control a considerable market share in China.

In addition to KFC, other leading western fast food companies including McDonald's and Pizza Hut have also won the favor of Chinese diners, especially young people.

The high standards in food preparation lie behind the great success of these western chains in China, experts here believe.

Additionally, the companies do in-depth market research to choose the best locations for their stores.

KFC, after careful investigating and researching, divided Beijing into 75 commercial divisions, opening at least one store in each to ensure that the eye-catching red-and-white KFC storefront is scattered throughout Beijing's commercial areas.

Foreign Fast Food VS Chinese Fast Food

More than a decade ago foreign food marched into Chinese market. Since then there has been a lasting battle between foreign and domestic fast food. First is US Californian beef noodle against Chinese beef Noodles, and then is Shanghai Ronghua Chicken vs. American KFC. However the results are similar: foreign counterpart always gains the upper wind.

In the commodity society, product price is the key factor to restrict consumption. Commodities at lower prices are easier to sell according to the conception of commercial management. It seems like Chinese food takes an obvious advantage in terms of this. A survey shows that Chinese fast food mainly costs only 5 to 10 Yuan a meal.

But consumers need low price as well as reliable quality of the products.

Compared with Chinese food, foreign fast food's price is not low but which doesn't prevent it from attracting consumers. You can see floods of people rush into KFC or McDonald's every day, while few step into Chinese fast food restaurants.

A KFC employer said, "It is a question of sense of value. We provide the consumers with fast service, clean and comfortable atmosphere, and delicious food, making them enjoy themselves here."

A mother who often takes her child to KFC said that children can play happily in the amusement zone set in the KFC, adults can read some magazines while having the meal. I feel at home.

Putting the consumer at the first place and bringing them good food and warmth are the magic weapon.

Malan Noodles, considered the pioneer of domestic fast food, has won a little success in Beijing in the past of years. Its victory story tells us domestic food should be based on the taste of the Chinese, introduce advanced international management experiences on fast food, strengthen the brand effect and enlarge the scale. Then it can fight the foreign fast food in the world market.

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