Kfc in China
Market Entry Strategies Final Paper
Kentucky Fried Chicken’s Market Entry in China
Company Background
KFC, the largest fried chicken chain and the second largest restaurant chain in the world, currently has more than 17,000 outlets in 115 countries worldwide. The chain primarily sells fried chicken pieces, chicken related products such as sandwiches and wraps, and other side dishes such as fries, desserts and soft drinks. KFC’s fried chicken pieces and related products are made with special ingredients and the exact composition of these ingredients is an unknown secret and also a key of KFC’s special flavor.
KFC was founded by Harland Sanders in 1930. Sanders was one of the first few who applied restaurant franchising concept into restaurants management. The first KFC franchise was opened in Utah in the early 1950s. KFC grew rapidly and Sanders found that the rapid growth made it difficult to manage. Thus, he sold the company to a group of investors in 1964 for $2MM. Then, in the early 1970s, the investors sold KFC to Heublein Spirits, who were later taken over by the R.J. Reynolds group. After few years of business, R.J. Reynolds sold the KFC chain to Pepsi Co.
KFC was one of the pioneer US fast food chains that went international. In the 1960s, it first opened outlets in England, Mexico and Puerto Rico. Throughout the 1970s and 1980s, KFC was successful in US and continued to aggressively expand its oversea markets. In 1987, foreseeing China as greatest restaurant market, KFC entered China and became the first large western fast food chain in China. By 2012, KFC is the number one fast food brand in China with more than 4,200 restaurants in more than 850 cities.
KFC’s huge success in China is not because of luck but well-established enter strategies. The entry had several potential uncertainties. First of all, KFC didn’t know whether the current company policies would work in the new market or not. For example, KFC stressed importance on QSC (quality,
Kentucky Fried Chicken’s Market Entry in China
Company Background
KFC, the largest fried chicken chain and the second largest restaurant chain in the world, currently has more than 17,000 outlets in 115 countries worldwide. The chain primarily sells fried chicken pieces, chicken related products such as sandwiches and wraps, and other side dishes such as fries, desserts and soft drinks. KFC’s fried chicken pieces and related products are made with special ingredients and the exact composition of these ingredients is an unknown secret and also a key of KFC’s special flavor.
KFC was founded by Harland Sanders in 1930. Sanders was one of the first few who applied restaurant franchising concept into restaurants management. The first KFC franchise was opened in Utah in the early 1950s. KFC grew rapidly and Sanders found that the rapid growth made it difficult to manage. Thus, he sold the company to a group of investors in 1964 for $2MM. Then, in the early 1970s, the investors sold KFC to Heublein Spirits, who were later taken over by the R.J. Reynolds group. After few years of business, R.J. Reynolds sold the KFC chain to Pepsi Co.
KFC was one of the pioneer US fast food chains that went international. In the 1960s, it first opened outlets in England, Mexico and Puerto Rico. Throughout the 1970s and 1980s, KFC was successful in US and continued to aggressively expand its oversea markets. In 1987, foreseeing China as greatest restaurant market, KFC entered China and became the first large western fast food chain in China. By 2012, KFC is the number one fast food brand in China with more than 4,200 restaurants in more than 850 cities.
KFC’s huge success in China is not because of luck but well-established enter strategies. The entry had several potential uncertainties. First of all, KFC didn’t know whether the current company policies would work in the new market or not. For example, KFC stressed importance on QSC (quality,