Kentucky Fried Chicken in the Chinese Market Essay

KFC (Kentucky Fried Chicken) is the world’s largest chain of fried chicken fast food restaurants, headquartered in Louisville, Kentucky in the United States. It was first founded in the 1930s, North Corbin, Kentucky. It is a traditional American fast food restaurant and the second largest restaurant chain after McDonald’s, with over 17,000 outlets in 105 countries and territories. KFC’s two major single markets are in its home country United States and China, which together contain around half of its outlets.

KFC was first introduced in China at 1987; it has been very successful in China because it adapts its menu to suit the local tastes. In China, KFC is even more popular than its competitor McDonald’s. The KFC in China has a lot of difference compare to the KFC in U. S. The American KFC provides very limit of choices to its customers, it only has fried chickens, buffalo chickens, and bunch of burgers etc that you can get from most fast food restaurants.

In China, KFC has developed it new kingdom with diversification strategy, it does sell fried chickens but also created variety of other food choices to its Chinese customers. For example, KFC provides special lunch such as curry chicken with rice, Italian style chicken with rice, and Italian style meatball with rice, etc to it Chinese customers. It also sells desserts and drinks like bubble teas, milkshakes with ice cream on top, and Irish coffee, etc. In China, Kentucky Fried Chicken has caught everyone’s stomach; therefore, it has more growth opportunity in China compare to its home country United States.

In the United States, many KFC locations are co-located with the other fast food restaurants, Taco Bell and Pizza Hut. Many of these locations behave like a single restaurant, offering a single menu with food items from both restaurants. The first such combination, a KFC-Taco Bell, opened in Clayton, North Carolina in 1995. The KFC Corporation has low sales in the U. S, and it is often blamed on lack of new ideas. They also did not spend enough money on promoting its brand. In China, KFC works on the opposite way.

Recently, Chinese KFC turned into 24 hours restaurant, and provides 24 hours delivery which brings convenience to its customers. The Chinese KFC is also promoting its brand name by make Jeremy Lin the endorser of 2012. In China, KFC wants the customers to think that they are providing healthy foods with reasonable price; it also established educational funds to Chinese students who couldn’t afford to go to school. In conclusion, KFC is doing everything they can to be welcomed by the Chinese and they are very successful on doing this.