To circumvent the traffic jams that sometimes extend for miles in the winter, it relies on contingency plans that involve renting temporary warehouses and reserving space on cargo airlines. Most products are sourced in China. But the company works with its suppliers to build their capabilities and capacity; it is even working with growers to introduce U. When KFC opened in Beijing, it was one of the first companies to promote excellent customer service—a concept then unfamiliar in China after decades of communism.
But despite an abundance of willing workers, staffing is a perennial obstacle. To maintain its current restaurant-opening rate, KFC needs at least 1, new managers and 30, new crew members a year, and they must be ready the minute an outlet opens, because it is likely to be packed. Teaching employees how to interact with customers is no small matter. One-child families and the proliferation of home computers mean that Chinese children interact less with other people than they did in previous generations.
New recruits at KFC often have to learn basic people skills and teamwork. Ever since KFC China opened its first outlet, in Beijing in , the number of foreign-owned chain restaurants has grown steadily in China. Burger King has about three dozen restaurants in China, where its first outlet opened in Pizza Hut is a part of the Yum!
Like KFC, it has undergone a transformation in China. It now offers a lengthy menu that includes seafood pizza, beefsteak, and fried squid, and it attracts an older and more affluent crowd than KFC does. Starbucks opened in China in and has about shops there; the company plans to have 1, by Executives say they believe there is huge potential to drive coffee consumption in China.
Taco Bell was similarly positioned by Yum! It announced earlier this year that it was considering expansion in China. Franchising has long been a mainstay of the fast-food industry, because it reduces investment costs and risk and enables rapid geographic expansion.
It works well when a pool of experienced, entrepreneurial candidates are available to run franchises and when restaurant operations are relatively simple—built around, for example, a limited menu of easy-to-make products. Owning the restaurants allows the company to closely control every aspect of their operation, from menu to decor, and to monitor results and the success of new products.
It permits centralized purchasing, which reduces costs, and gives the company a larger share of outlet profits. Some Western health problems are already showing up in China. The number of overweight and obese children aged seven to 17 has tripled to 8.
In the mids a fellow participant at a seminar in the U. Aware of a growing sense in the West that high-fat, high-carbohydrate foods play a role in the obesity epidemic, Su asked himself how Yum! Brands could take action to forestall such problems in China. Tray mats carry educational messages. Nutrition information is printed on every package. Hostesses teach lessons on nutrition to kids. In recent years Yum! The clean, efficiently run restaurants have Chinese decor and serve Chinese food exclusively—no U.
The chain has relatively few outlets, and nationwide expansion is still a distant goal. Recently, Yum! By Yum! The results of the strategy of heavy localization have been impressive: In the first half of sales at Yum!
Over time, KFC China has come to reflect China itself in some respects: It is large, growing, confident, and eager for variety and new experiences. There were many families casually eating lunch, teenagers using the restaurant as a hangout spot, and a couple college students working on homework. Most people weren't waiting in line for the counter like I was. Most were instead scanning the QR code on the wall and ordering and paying on their phones. QR codes are ubiquitous in China.
Restaurants often don't even have paper menus anymore. The cashier fished out a laminated English menu for me from below the counter. There were a ton of unfamiliar options, including a shrimp sandwich, matcha ice cream, congee, and soy sauce wings. I saw a promotion for these sushirritos and asked if I could give them a try. Unfortunately, the sushirritos and the congee are both only for breakfast.
Alas, next time. I over-ordered. But I promise, I did it for you all, the readers. I ordered: a piece wing bucket five soy sauce, five fried , a Dragon Twister, a chicken-and-seaweed rice bowl, an egg tart, a chicken salad, peach oolong tea, and something called nine lives juice drink.
I started off with KFC's tried and true, the chicken. The soy sauce wings were crispy and fried well, with no breading. The sauce was just a light glaze, enhancing the crispy skin and giving a not-overpowering salty-sweet flavor. The meat was tender and moist. Next, I tried the fried chicken. But when you bite in, there is a peppery, spicy kick. I usually layer on condiments.
I didn't touch one with this chicken. It's worth noting the marketing materials on the bowls here. They were all done with classic Chinese figures. The nine-lives drink was a cloyingly sweet mix of pineapple and orange juice. I found its sweetness unusual. Most Chinese drinks and desserts are notoriously very lightly sweetened.
I decided to order this because after three weeks in China I had yet to eat a salad. The pan-fried chicken was tender and juicy. I was expected dry and cold, like most salads. There was a sprinkling of quinoa and corn, which seemed more like an afterthought. The bed of mixed greens was serviceable, nothing special, while the dressing was a sickeningly sweet tart Apple dressing. It also hosted a poetry contest. But aside from still-angry Chinese residents , Yum faces even more formidable foes: state media consumer watchdogs that target foreign companies.
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