Kfc And China Case Study

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McDonald’s and KFC: Recipes for success in China
Country Description

China is a country that is located in East Asia. China has a total area of 3.7 million square miles. China has some fast food chains. A few of them are Subway, Jiangsu Da Niang Dumpling Co Ltd, Zhenkungfu Catering Co Ltd, LEM hamburger, Pala Catering Management Co Ltd, McDonald 's Corp, Shanghai Shihao Catering Co Ltd, Ting Hsin International Group, Hua Lai Shi, and Yum! Brands Inc which is KFC. The Republic of China has Per Capita GDP of $6900 US dollars. This is about 42,500 Chinese Yuan per person.

Country Level Analysis

There are a few positive things about China. China is averaged a GDP of over 9% since 1978. China is the most populated country in the world with a
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KFC was the first quick service restaurant in 1987 followed by McDonalds in 1990. The retail revenue growth of the quick service restaurant industry is great. It was at 5.2% in 1991 and then increased to 14% in 2007. The share of fast food in the retail industry was anticipated to reach 9.3% by 2011. The fast food industry of China was projected to increase at compound annual growth rate of about 25% from 2008 through 2011. This industry is not a seasonal industry. You can go to a quick service restaurant all year round and some restaurants even have special menu items for certain holidays and their toys may be from the current box office hit. There are a lot of competitors in the fast food industry and depending on where you depends on which restaurants are in your area. For example, in Toledo, Ohio, we have McDonalds, Arby 's, Taco Bell, Burger King, Subway, Magic Wok, Chick-Fil-A, Wendy 's, Rally 's/Checkers, KFC, Chipotle, and Five Guys Burgers and Fries to name a few. But in …show more content…
Some of the fast food restaurants are only in a certain part of the region of the country. Another example is that Toledo has 3 or 4 Chick-Fil-A 's but Ann Arbor, Michigan does not have a Chick-Fil-A so if those residents want Chick-Fil-A, they have to come to Toledo to get it or drive over to Oakland University in Rochester, Michigan to get it. This industry also has a need for technology. I remember watching Modern Marvels years ago and they had one episode about the fast food industry. In the episode, they talked with people from Taco Bell. The people from Taco Bell said they spent a lot of time and money doing research and development for the technology for Taco Bell. One piece of technology was a scooper for the taco meat for their tacos. It was designed to put 1.5 oz of meat in the taco each time every time. They have technology cooks the food the perfect amount of time, puts the correct amount of sauce and dressing on the food. There are also machines that fill up drink cups with the correct amount of drink whether you ordered the small, medium, large, or the

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