i think this is the best kentucky fried chicken i ever had how did kfc become the first u.s fast
food chain to open up in the communist country of china in 1987. let's find out what 10 secret
ways kfc won over china the secret ingredient is only kfc could go to china does anybody have extra
ticket my investor cannot pay it was conventional wisdom during the height of the cold war with the
soviet union that only a cold warrior like richard nixon had the credibility to be the first american
president to go to communist china to open up relations maybe fast food isn't as historically
significant as international relations and national security issues but it's still
something to care about kfc has the distinction of being the first fast food chain to enter the
mainland china market kfc's opportunity was an example of the economic changes taking place in
communist china as it began to shift toward a semi-capitalist market money money money money
the fast food chain opened its first store in 1987 near the great wall the chicken chain was
off to a strong start right from the beginning because this is a terrific location the proximity
to china's most popular tourist attraction gave kfc the opportunity to serve both locals as well
as foreign tourists who are already familiar with the kfc brand the chicken chain had a head start
against other fast food chains opening in china and it seems to have made the most of it the china
menu ain't got no better food like some chicken wings some baby back ribs some fries or something
fast food restaurants are built around a menu that is somewhat unique to that chain even if this just
means the franchise's own take on hamburgers and fries in the case of kfc in america the menu is
all about their original recipe fried chicken biscuits and mashed potatoes chicken was still
something of a luxury food for most chinese people when the fast food chain opened its first store
near beijing kfc has built a successful brand around pieces of fried chicken chicken tenders
and sides like coleslaw and biscuits biscuits are not on the menu at kfc outlets in china
of course biscuits are very popular in america so it's interesting to see how cultural differences
show up in people's different tastes kfc stores in china do offer a selection of traditional chinese
menu items as well as some chinese inspired items before entering the chinese market the
people at kfc took the time to carefully research chinese taste and cuisine so they
could better cater to the population they hope to capture as regular customers you like chinese
the food the chicken chain offers chinese favorites such as egg tarts which are little
custard pies konji a kind of rice porridge as well as fried dough sticks that sound like they
can make a tasty snack or dessert anywhere in the world luxurious that sounds expensive in american
culture and in the west generally fast food chains are usually considered to be fairly low quality
when it comes to the food fast food can be very tasty but many people value its convenience
over its quality fast food is also known to be relatively inexpensive when compared to sit-down
restaurants when kfc was introduced in china the average population mainly consisted of rural
laborers and farmers without a lot of disposable income most people living in china considered
meat a luxury and would likely not have eaten it every day rice mixed with some meat paste was one
of the staple dishes people commonly ate in china in the 1980s when kfc was able to offer a readily
available and affordable meal with a couple of pieces of chicken and some side dishes the
chinese considered it to be a small feast it was an important insight when kfc realized that many
chinese considered a modest but decent meal with some meat a real luxury the company's ability to
meet this demand with affordable choices was one of the secret ways kfc won over china it's cheaper
even though the communist country has become much more wealthy since the 1980s there is still a big
demand for kfc's convenient and modestly priced meals expanding footprint there's
always wanting more more more kfc started with only one store on the chinese mainland in 1987
but the demand for affordable and accessible fried chicken proved to be a growing phenomenon that has
made the fast food chain a lot of money i'm rich i'm rich like most businesses kfc wanted to grow
however growing its footprint in china was a business decision but also a political
decision by 1999 the chicken chain had opened more than 300 stores across the country in both
big cities and small communities kfc became a familiar part of many people's lives however
fast food chains like mcdonald's have not been quite as successful expanding into the communist
country and there are clear reasons for their struggles the golden arches relied on a strategy
of focusing on urban areas and families however china which still had its controversial one-child
policy in place when mcdonald's arrived was not the best market for a child focused campaign kfc's
efforts to expand into the rural areas helped to foster and maintain goodwill with chinese
customers who have been having trouble affording chicken and other meat as part of their daily diet
send in the colonel oh yes hi colonel sanders mcdonald's is the most successful fast food chain
in america in 2019 it raked in almost 41 billion dollars in sales starbucks was a distant second
at 21 billion dollars kfc by contrast didn't even crack the top 10. it finished in 13th place with
less than 5 billion dollars in sales the chicken chain might be a relatively small fish in a big
american pond but in china kfc is the big cheese or in this case it is more like the big chicken
mcdonald's became a great success in america by paying attention to what its customers wanted and
using advertising and marketing to build a brand that spread like hotcakes across the country from
coast to coast kfc used a similar formula in china to help it become a hit in the communist country
the fried chicken restaurant had a significant head start in the densely populated country
and it has held on to the lead for more than 30 years although its dominance has begun to wane a
bit kfc will likely continue to beat the number one american fast food chain in china for years
to come it seems like the only thing that could threaten kfc's dominance is if the chinese people
suddenly develop a huge taste for hamburgers and french fries location location location on once
if you love chicken on twice location is often touted as the most important factor in assessing
the value of a piece of real estate this is often true and fast food chains like kfc have learned
that the locations of their restaurants are one of the key factors in their success attention
to details like this is one of the secret ways kfc won over china even though china has about
1.4 billion potential customers kfc still did not take the locations of its restaurants for granted
the fast food chain implemented a successful strategy that embraced the obvious locations
such as putting a restaurant near the great wall smart and smart however kfc was also mindful
enough of chinese demographics and culture to open locations in the more out of the way
rural locations where most people live these were less attractive locations that could have easily
been overlooked by less attentive businesses the change decisions were rewarded with loyalty and
good will from the chinese people who had often struggled to afford meat but could afford to order
the chicken at kfc even with all the strides and industrialization the communist country has made
over the past few decades the majority of chinese are still people of modest means living in rural
areas it made business sense for kfc to account for all these potential customers instead of
focusing too much on the big cities like beijing and shanghai a healthier brand of chicken hey
is that healthy food whether you call it fast food or quick service restaurant chains like
kfc offer customers mostly high calorie and high fat foods it's clear that a lot of people love
foods like milkshakes hamburgers french fries and of course fried chicken you love these kind
of foods because they taste so good amen and not because they are good for you kfc in china
decided to address this health versus taste question by launching its innovative k-pro
brand in 2018 this more healthy and more hip take on the tried and true fast food chain is one of
the secret ways kfc won over china the first of these restaurants opened in beijing and hangzhou
and they offered more health conscious eaters a menu of mostly salads sandwiches and juices
instead of the usual fried chicken mashed potatoes and sodas k pro is definitely a healthier choice
than kfc but it's not exactly actual healthy food either this alternate fast food chain offers menu
items like a mexican-themed chicken burger a pesto chicken sandwich and a kale and blueberry salad
in case you were thinking this menu doesn't sound like much fun you'll be relieved to learn it's
not all grilled chicken and lettuce to satisfy the chinese sweet tooth k pro offers a somewhat
elegant soft serve sundae with an upside down cone with both kfc and k pro chinese customers have
plenty of ways to get their chicken fixed just the way they want it they can get the traditional
greasy fried chicken insides or grilled chicken and greens embracing technology today's technology
is beyond me many businesses embrace technology fairly quickly because it can help them improve
their bottom line kfc in china has been on board with many of the technological advances that have
impacted the fast food industry over the last few decades in-store ordering kiosks and easy-to-use
smartphone apps made ordering quicker and more convenient however this kind of technology
potentially reduces the number of people that can be employed this technology ends the need for
traditional cash registers kfc china's innovative k-pro restaurants have been designed without these
traditional fixtures of fast food restaurants putting people out of work in a country with a
population of almost a billion and a half people doesn't seem to be a way to ensure customer good
will but so far kfc seems to know what it's doing in china the k-pro restaurants are on the cutting
edge of industry technology with its facial recognition payment system called smile to pay
according to k pro this is part of the brand's vision of a fully immersed dining experience
i love it it's simply awesome unfortunately with china's history and reputation it's easy to see
how this kind of technology could be misused unlike the broad appeal of the kfc restaurants
k-pro is catering to the younger generations for which digital technology is largely second nature
embracing technology is just another way kfc won over china the future is finger looking good
delicious back in 1987 kfc was the first chain to scale the great wall and sell american fast
food to the people of china mcdonald's and other fast food chains followed in the chicken chain's
footsteps but kfc controls 31 of the market share in a country of nearly a billion and a half people
obviously there is plenty of opportunity to make money in china as the chinese people
continue to make economic gains and acquire more disposable income the fried chicken franchise
seems to be set up well for the 21st century if china's trajectory is destined to be similar to
america when it comes to the prevalence of fast food outlets kfc should continue to do just fine
after 35 years of doing business in china kfc has demonstrated a consistent ability to adapt
and innovate within a distinct culture and a challenging business climate the company
has been able to expand its customer base and navigate the complicated business and political
climate that exists in the communist country fast food continues to be popular in china and around
the world so the future of kfc looks finger looking good when i win a chicken dinner it
will be interesting to see what the future holds for kfc and the other fast food chains
as they continue to compete and expand in china over the next couple of decades america kfc
fast food chains are every bit as american as hot dogs and apple pie mcdonald's with ronald
mcdonald championing its big macs french fries and shakes might still be the number one fast
food chain in america but china is in america in china hamburgers and french fries just don't
have nearly the same stature as they enjoy in america kfc reigns as the undisputed fast
food champion in china and has brought with it the practices and procedures that have made it
another fast food chain so successful in america the chicken restaurant has lost some of his
dominant position to mcdonald's in the communist country but it's unlikely ronald mcdonald will
outdo colonel sanders anytime soon not so easy is it 30 years ago many people in government and
business in america argue that stronger economic ties with china would be good for both countries
china was supposed to benefit economically through trade and the relationship was also supposed to
make the communist country less authoritarian and more free most experts would argue this hasn't
happened and could point to human rights issues as examples of the regime's thuggish ways however
kfc has managed to thrive despite the challenges of doing business in the communist country
because it offers products a lot of people in china want and could afford to buy
it might sound simple but business ethical and cultural issues are challenges kfc will have to
navigate to continue to be successful in the 21st century easy peasy check out more great videos
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