Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 17 pages
Data source: Published sources
Abstract
Western fast food giants like McDonalds and Subway, with Kentucky Fried Chicken (KFC) in the lead, dominate the fast food market in China. KFC is able to please the Chinese palate with its ''finger licking good'' chicken that is part of the well-established dietary habits of the Chinese. The Chinese who until the1980s were used to untidy restaurants and unfriendly service, have embraced the ambience, rich decors and friendly service of KFC. As of 2003, KFC had more than 900 outlets, with its presence in 12 out of 13 provinces of China. KFC, apart from its popular products, also customised its products to suit the Chinese palate such as Peking duck, bamboo soup etc, that helped it win over loyal patrons. It is also the first food chain to introduce a drive-through restaurant in China. Despite heavy competition from its western counterparts like McDonalds and Subway and China''s domestic food chains like Ronghua Chicken, KFC maintains its lead in the fast food market worth RMB 67.6 (US$8.1 billion) as of 2002. The case details the difficulties KFC had to face in its initial years in China, and the hurdles it overcame, to become the biggest fast food chain in the country. A structured assignment ''304-062-4'' is available to accompany this case.
Location:
Industry:
Size:
Large
Other setting(s):
1987-2003
About
Abstract
Western fast food giants like McDonalds and Subway, with Kentucky Fried Chicken (KFC) in the lead, dominate the fast food market in China. KFC is able to please the Chinese palate with its ''finger licking good'' chicken that is part of the well-established dietary habits of the Chinese. The Chinese who until the1980s were used to untidy restaurants and unfriendly service, have embraced the ambience, rich decors and friendly service of KFC. As of 2003, KFC had more than 900 outlets, with its presence in 12 out of 13 provinces of China. KFC, apart from its popular products, also customised its products to suit the Chinese palate such as Peking duck, bamboo soup etc, that helped it win over loyal patrons. It is also the first food chain to introduce a drive-through restaurant in China. Despite heavy competition from its western counterparts like McDonalds and Subway and China''s domestic food chains like Ronghua Chicken, KFC maintains its lead in the fast food market worth RMB 67.6 (US$8.1 billion) as of 2002. The case details the difficulties KFC had to face in its initial years in China, and the hurdles it overcame, to become the biggest fast food chain in the country. A structured assignment ''304-062-4'' is available to accompany this case.
Settings
Location:
Industry:
Size:
Large
Other setting(s):
1987-2003


