A comparative analysis of the distributions of KFC and McDonald's outlets in China

Abstract

Mainland China has become one of the most important markets for international fast-food chains over the past decade. To study the regional spread of KFC and McDonald's outlets in Chinese cities, the correlation of their distributions and degree of market expansion were explored and compared to analyze both the local and the global spatial autocorrelations. A geographically weighted Poisson regression model was also used to examine the influence of demographic, economic, and geographic factors on their spatial distributions. The findings of this comparative study reveal the site selection criteria at the city level by studying the differences and similarities in outlet distributions for KFC and McDonald's. The presented results can guide other chains to enhance business location planning and formulate regional development policy.