Mcdonalds In China

Improved Essays
McDonald’s famous golden arches and Yum! Brand’s Kentucky Fried Chicken (KFC) are among the most iconic fast food establishments in the United States of America, but had mainly stayed in the home country. By the 1950’s both chains had a very strong presence in the United States and had began to invest abroad. After a lackluster attempt in Japan, KFC set its sights on China. China was and continues to be the one of the fastest growing economies on the planet. This is extremely enticing to companies operating in mostly saturated economies like Canada, Europe and the United States. China offered a virtually untouched economy with over a billion consumers and almost non existent competition leading to a boom in foreign investment. The Chinese …show more content…
The country had begun to “open up” only nine years before, and the Chinese people were very curious about life in the west. Natural curiosity about this western establishment helped KFC, and others that would enter the market. The Chinese people prefer chicken over beef giving KFC a natural advantage over other restaurants like McDonalds that specialize in hamburgers. In 1987 KFC had virtually no competition in the fast food industry. And even with McDonalds entering in the country three years later, they were in a completely different part of the country and not an immediate threat. KFC began operations with a differentiation strategy in China. While KFC’s style of fast food was nearly the same as other fast food places in the west, what they offered in China was completely different from that countries existing …show more content…
This was especially true for their employees. All positions from assistant manger on down were held by native Chinese people with a high school education, no restaurant experience and some English skills. KFC wanted these stores to be successful and an educated staff is essential in order to achieve success. With no previous restaurant experience the employees could be molded into the KFC style much easier. In the early days, many people eating at the locations were tourists and especially English speaking people. These new employees were highly compensated for their work and paid better then college professors in many cases. They also wanted executives with great knowledge of the area. They realized how important it was for their leaders to understand and relate with the Chinese people and give them what wanted rather than what the American stores offered. Within four years of opening the first restaurant, KFC’s largest store, it became the best selling KFC establishment in the entire

Related Documents

  • Improved Essays

    Chinese food and McDonalds equally marketed themselves as an “experience” and not the cuisine they sold. In the United States, Chinese food was very much influenced by the consumption of China and Chinese-food by influential figures. Nixon popularized the consumption of Chinese-food and Chinese culture. After his trip to China, it was no longer seen as an oddity and many American ventured out to try the cuisine. However, of course the food was altered to fit the needs of the American palate and, therefore, it was no longer the “authentic cuisine” they sought but the feeling of consuming something foreign and different to American cuisine.…

    • 1195 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    What also stood out about this restaurant is that it wasn’t particularly located in or close to any Chinese American communities. While mainstream American customers tended to stay away from small, independently owned Chinese restaurants, through P.F. Chang’s expansion and development, an increasing amount of Americans continued to accept P.F. Chang’s as genuine Chinese food. By having the financial resources to create a restaurant that exudes comfort and a trendy atmosphere, it represented a new image for Chinese restaurants and as a public company with standardized chain stores, enabled real Chinese food to be a part of the high-end American restaurant…

    • 1432 Words
    • 6 Pages
    Great Essays
  • Great Essays

    This resource is also very durable, as Apple has been able to maintain its brand reputation for years. Apple’s strong brand also passes the appropriability test. Under Sculley, the brand had loyal customers devoted to the brand, and later Steve Jobs revamped the brand, which made it even stronger. Many were worried that Apple’s achievements would not be sustainable following Jobs’ death, but the company has been doing just as well under Tim Cook. In Cook’s first three years as CEO, the stock price of Apple doubled, revenues were up, and its market capitalization surpassed $700 billion, making it the most valuable company in the world.…

    • 1336 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Case Study Of Chick Fil A

    • 719 Words
    • 3 Pages

    The vast majority of fast food outlets sell hamburgers as their primary food product, and usually resort to price promotions and movie tie-ins to attract customers. This competition has had a profound effect on business. Industry-wide flat pricing and rapid store growth have held average sales increases to under 2% a store for several years running. In contrast, Chick-fil-A’s attraction is not price or convenience, but the taste of their chicken sandwiches – a “healthier” alternative to hamburgers. In test research surveys, consumers spoke quite favorably about the chain’s product during aided brand awareness.…

    • 719 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Chipotle Case Study

    • 803 Words
    • 4 Pages

    For example, the best restaurant can serve 300 customers in 1 hour, and the speed of service is chipotle has been reached. The average price per meal is more than $9 in chipotle, which is similar price with their competitors, such as McDonald 's Corp, Yum! Brands, Inc. and so on. In Chipotle, not only to do their own work well, but also to do it unusually. When Chipotle opened the first restaurant in 1993, the goal is simple, the company want to provide customers with high quality delicious food and first-class…

    • 803 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    1. Jollibee had always been a customer favorite from the start. The Tans’ hamburgers, a home-style Philippine recipe was one of the favorites on customers list because of its spicy taste. Jollibee had been doing great for themselves from the year 1992 all the way through 1996, looking at the financial statements Jollibee was consecutively increasing in total sales, total stores at end of each year, company owned stores, and franchises, as shown in Exhibit 1. When McDonald’s entered the Philippines market, it was then when Jollibee first encountered a real competitor.…

    • 1123 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    In my mind, cooking is a very simple thing because my mom cooking just need a few minutes. So I start to find some materials in online. I will never know unless I research how to cook Chinese food because cook Chinese food is very difficult, there are a number of types how to cook the Chinese food. I felt headache. Today, also nobody cooks for me, my parents just gave me some money that let me buy something to eat.…

    • 1064 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    The upper and the middle class usually have high disposable income hence are likely to be the regular customers at the joint. Consequently, the fast food joint in China should make certain that they elevate their standards to meet the tastes and preferences of the target customer. Billy’s Barbeque are assured of success in the market just the same way as the American fast foods giants such as McDonalds, KFC, and Starbucks. Billy’s Barbeque localization strategy will sell in Beijing significantly because the locals can easily relate to the products and design of the fast food joint. The décor that reflects Chinese Culture is one concept that will sell the fast-food joint.…

    • 991 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Wendys Swot Analysis

    • 1401 Words
    • 6 Pages

    Wendy’s also purchased Baja fresh for $275 million in 2002. Wendy’s is one of the leading fast food restaurants in the world. Wendy’s holds this position, due to growth and expanding future endeavors. Wendy’s have been able to captive the market shares from historically invincible rivals through better services and higher quality products. Product…

    • 1401 Words
    • 6 Pages
    Great Essays
  • Great Essays

    American Fast Food

    • 1840 Words
    • 8 Pages

    Obesity rates 50 years ago were no higher than 15%, but today Mississippi and West Virginia top the charts with record numbers of 35.1% (Levi). Calories, along with many other unknown facts, can be consumed throughout the day and not burned off properly at a steady rate if no physical exercise is accounted for. In a Burger King Triple Whopper Sandwich alone, there are over half a day’s supply of calories, not including a side order and a fountain drink. However, quite an abundance of people believe that the meals all fast food places serve are loaded with junky ingredients and fat additives, but Subway, Panera, and Jason’s Deli are a few names who try to remain as fresh as possible (Oches). At Subway, the six-inch foot long with the most calories hits at 570, nearly half of the largest at Burger King.…

    • 1840 Words
    • 8 Pages
    Great Essays