- KFC was one of the first American fast food restaurants to set up shop in China after its opening to international trade.
- Its careful strategy and special attention to the Chinese market have been key to its road to success.
- In 2017, the North American chain made almost 5 billion dollars.
KFC is one of China’s favorite fast food chains.
In 2017, KFC generated almost 5 trillion dollars in profits in China. With 5,200 locations, China is home to the vast majority of KFCs in the world. By comparison, McDonald’s has “only” 2,500 locations in China.
KFC was the first fast food restaurant to open here. Before 1987, China was much more closed to the rest of the world. But once China opened its doors, and its economy, KFC was quick to seize its growth opportunity. China’s first KFC was strategically located near the Great Wall. Choosing a tourist area allowed KFC to access a large consumer base, while expanding its outlets.
According to former KFC executive Warren Liu, the company had a natural advantageas most Chinese consumers prefer chicken to any other type of meat such as beef. For most, KFC was the first Western-style food they had access to. As a result, KFC’s reputation in China was quite different from that in the US.
– Kara: In China, going to a KFC is not a common thing, it is more of a treat.
– Narrator:This is Kara Chin, a staff writer at Business Insider who lived in China from 2005 to 2013.
– KaraIn China, fast food is considered a luxury, I would say, unlike takeout.
– Narrator: While the Western world associates KFC with cheap, fast food, in China it is seen as more upscale and even high-quality. When KFC first started expanding in China, American companies were seen as prestigious and trustworthy. As a result of their newness, as well as less than stellar reviews of Chinese-origin products, foreign products became status symbols in China, and many still are. However, the key ingredient to KFC’s success in China is in how they adapted their menu.
– Kara: They keep the same thing as in America, except for the cookie, and then there are different variations. You take into account what flavors Chinese consumers want and how you can incorporate them. So, are you offering new items on your menu? Are you offering corn chips instead of chips on the kids’ menu? You’re not changing the entire menu, you’re just having different offerings that appeal more to Chinese consumers.
Read more: “KFC has a new recipe to seduce millennials: fake chicken”
– Narrator: KFC China’s menu includes everything from egg tarts to white rice to sushi burritos as a breakfast special. Staff writer Shirley Cheng had the chance to try KFC in China on her latest trip.
– Shirley: As far as I know, KFC is the most popular fast food chain in China. It is exactly the same as KFC in the US, but it also has a Chinese twist. They keep the original recipe and the cubes, elements that any American would recognize. But they also have local dishes like ‘rice congee’ and egg tarts that are very well known to the Chinese population. The KFC egg tart was so good that I ate four of them.
– Narrator:KFC also continually offers new products to further adapt to local customers and boost sales. KFC collaborates with popular celebrities, music groups and various brands. It does so despite the increasing number of fast food options that are appearing, international chains are increasing their presence in China.
– Kara: KFC doesn’t dominate the market like it used to. I’m not sure if KFC will still be as popular in China. It’s pretty obvious that when I traveled to China, KFC dominated the market because the competition hadn’t gotten there yet. McDonald’s wasn’t really there, even though it arrived in the early 2000s. Nowadays, the presence of the two is pretty comparable, there’s a KFC for every McDonald’s you come across. So we can’t say that KFC had the advantage of having arrived first.
– Narrator: Although KFC no longer has a dominance of the fast food market in China, it remains ahead of companies like McDonald’s and Burger King, and continues to devise strategies to increase its sales in China. In 2017, KFC opened “K Pro,” a restaurant with a healthier concept. Instead of fried chicken, the “K Pro” menu includes salads, paninis and juices. So even as competition heats up and food culture expands in China, KFC is doing what it does best: adapting.
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