Case study 2: KFC in China

Abstract

In China, Yum! Brands, the parent company of Kentucky Fried Chicken (KFC), are opening a KFC store every day. Utilising a different strategy compared to other Western fast service counterparts, KFC has become the largest restaurant company in mainland China. KFC outpaced its nearest competitor, McDonald's, by more than 1,000 restaurants in China and is outpacing its development by a roughly three to one. The US chicken giant adapts its Western business model in Chinese market through acknowledging the social and cultural differences. KFC realised that the US fast food model needs to be adapted because China's culture is not individualistic which is the characteristic of the US culture. Therefore, it is necessary to combine the US fast food business model and adapted them to serve the needs of Chinese consumers.