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KFCs Success in China

According to a study conducted by AC Nielsen in 30 cities of China, KFC was recognized by Chinese consumer as the most frequently dining place.In November 2000, KFC had set up 400 outlets in China. In October 2001, the number grew into 500. It reached 600 in February 2002. KFC has opened 1,200 outlets in over 200 cities across China at the end of 2004, leaving other competitors far behind.What we should learn from KFCs success? AS we know that one cant success for no reason.

What we should learn from KFCs success? AS we know that one cant success for no reason.KFCs site selection policy Site plays a key role in the success of business. KFC attaches great importance to the selection of restaurants location, and it almost succeeded in every selection. Site selection decision usually should be made by two committees in KFC: regional company and the headquarter.KFC follows these procedures in site selection: Division and selection of business circle1.Division of business layout2.Selection of business layout

They use marking system to divide business circle. e.g. If there is a big shopping mall in this area with volume sales of 10 million, it will get 1 score and 5 scores if the sales are 50 million. The score climbs higher with one more bus line and subway line. The marking standard is worked out with yearsexperience which is reasonably accurate. In selection of business circle, you should take both the restaurants market position and the stability and maturity of the business circle into account. You choose different business circle with different market position and consumer group.

KFCs supplier

The localization of supplier100% of KFCs chicken come from domestic factories and 85% of food packaging material is provided by domestic suppliers.KFC applies two policies in the localization of supplies. Firstly, to help the suppliers form into a large scale. The active measures takes by KFC enable the 25 domestic chicken suppliers to become the leaders in the chicken industry. Secondly, to localize foreign suppliers. KFC keeps encouraging its foreign suppliers to build factory in China. Over the years, KFC succeeded in bringing 17 foreign suppliers to China

Evaluation of supplier with STAR SYSTEMThe supplier often say, If a factory passes the KFC star system evaluation, then it can get ISO9002 quality verification easily. KFCs star system started to be put into practice in China in 1996. The system substantially improves suppliers quality.

KFCs training and stimulus system

KFC invests a large amount of money and manpower in strict and scientific training for employees every year, which allows aspired youths to become outstanding management talent of restaurants. Every employee including service staff, manager and managerial staff will get different sets of training. In order to help managerial staff obtain professional fast-food restaurant management knowledge, KFC established a special training center. Since its establishment, over 2,000 managerial staffs from across the nation have been given nearly 1,000 training courses. Over the past 16 years, KFC trained 200, 000 staffs and spent more than 240 million yuan on training project.

KFC is keen on public service

KFC has long-term investment on education by supporting the education of Chinese children and teenagers. According to statistics, over dozens of years, KFC has contributed 65 million yuan to public service through direct or indirect way. In September 2002, KFC and China Youth Development Foundation cooperated in establishing a China KFC foundation with a total initial fund of 38 million yuan to support excellent but poor university students for a long term. By taking part in public service activities, KFC advertised its corporation image as well as cultivate potential consumer groups and employees by osmosis.

KFCs localized recipe

Fast food used to be regarded as junk food. KFC has made great efforts in promoting the concept of balanced diet and healthy life. Over the years, KFC has added many new selections on the menu, paying special attention to add-up of vegetable and high nutritional food. With its 1,200 successful outlets, Yum! has provided foreign and domestic restaurants with useful experience of setting food in China and making a long-term development in this huge market

In my opinion, KFC is really a junk food, you had better have less.