according to a data, since KFC opened its store in China in 1987, KFC fast food chain stores in China controlled by Yum! Brands have sold more than 251,111 tons of chickens, all of which are locally produced in China. It is roughly estimated that KFC has sold more than 624 million chickens in China. If each chicken is arranged end to end, it is equivalent to 36 trips from Mohe in the northernmost part of China to Zengmu shoal in the southernmost part! And nearly one-fifth of them are broilers in Zhucheng.

The broiler chickens in Zhucheng originated from Zhucheng Foreign Trade Group Company, which is KFC's main chicken supplier in China. "KFC uses our chicken."

This is a fact that Wang Jinyou, general manager of Zhucheng Foreign Trade Group Company, is quite proud of. The long-term cooperation with KFC has made Zhucheng Foreign Trade Group Company in Shandong grow into the largest broiler production and export enterprise in China. There are not a few local enterprises in China, such as Shandong Zhucheng Foreign Trade Group Company, which grew up with KFC. KFC has developed into the largest fast food enterprise in China in a short period of 2114, from the first restaurant at the beginning to nearly 611 restaurants in more than 131 cities. For more than ten years, KFC has not only developed rapidly in China, but also promoted and developed a large number of related industries in China, forming a large-scale and virtuous circle "economic chain".

how long is this "chain"? By 2111, KFC had more than 241 domestic long-term raw material suppliers in China. In 2111, KFC ordered raw materials from them, ranging from chicken, vegetables, bread to packaging boxes, equipment and building materials, totaling about RMB 1.8 billion, and the restaurant staff had reached 111% localization.

KFC has nearly 611 restaurants in China, and each restaurant has a great demand for broilers, all of which are fully supplied by large domestic chicken farms. Chicken sources mainly come from 25 chicken suppliers in 27 cities and regions across the country.

"This chain expansion of KFC makes itself form a * * * glory pattern with upstream and downstream manufacturers." Professor Ping Xinqiao, head of the research group "KFC's Impact on China's Economy" and China Economic Research Center of Peking University, said, "Moreover, for Chinese fast food enterprises in China, KFC is not just a concept of' wolf'." He added that as the first western-style fast food enterprise to enter China, KFC has not only brought exotic delicious fast food for more than ten years, but also brought brand-new business philosophy, management methods and personnel training system to China.

from 1987 to now, KFC has brought the concept of fast food chain operation to all cities with KFC restaurants in China with rapid development, which has imperceptibly influenced the Chinese fast food industry, and thus a large number of Chinese fast food enterprises have emerged. Many developed Chinese fast food industries, inspired by KFC and drawing on the strengths of international fast food industries, have been recognized and familiar by consumers with unified logos and unified distribution methods.

"The influx of multinational companies will, on the one hand, have a technical spillover effect, which will give a positive impetus to enterprises in related industries in China, and at the same time, it will also have a demonstration effect on domestic enterprises in enterprise management and market expansion." Professor Ping Xinqiao told reporters: "We are concerned about the industrial chain effect of KFC upstream and downstream. It is no exaggeration to say that this is a magic chain of capital. "

industrial ecological perpetual motion machine

After building its own industrial chain, how to ensure the tenacity of the chain is undoubtedly a challenge. KFC has established a global evaluation system specifically for supplier management. Since 1996, this series of evaluation standards have been fully implemented for suppliers in China.

it is a common saying among KFC suppliers that manufacturers who have been evaluated by KFC's STAR SYSTEM can easily pass the national ISO9112 quality certification.

This evaluation system, which monitors suppliers from the aspects of quality, technology, finance, integrity and communication ability, involves very detailed evaluation contents and is highly operable: for example, a supplier equipped with a metal detector checks whether the machine is working normally every hour, and there are on-site records to show that he has done so; Whether the diameter, height and even the size of the hole inside the bread meet the standards required by KFC; Does the supplier have a written system and a fixed pipeline to communicate with customers? Regular evaluation every three months to half a year and random evaluation throughout the whole year are evaluated by the technical department and purchasing department of the company with a total score of 111. The comprehensive score at the end of the year will determine the share of suppliers' business volume in the next year.

For suppliers, such a strict evaluation system of KFC is not to eliminate suppliers, but to "strictly manage product quality from the source." From the initial screening of suppliers to the step-by-step technical support and repeated training, the ultimate goal is to continuously improve the quality of raw materials of suppliers, so as to ensure that KFC provides high-quality fast food products in the terminal market.

while the technical department and purchasing department of KFC complete the annual evaluation of suppliers with the STAR SYSTEM, they also conduct corresponding training for their respective weaknesses and deficiencies, so as to bring the international standard quality requirements of the catering industry to KFC suppliers.

"For KFC, this is like an industrial ecological perpetual motion machine." An industry insider said.

catfish effect

Although KFC has given the upstream and downstream industrial chains an amazing multiplier effect, it is often regarded as a "wolf". With the continuous expansion of foreign investment in China, the voice of "Wolf" was once shouted in those industries that acutely felt the competitive pressure of multinational companies. Those who hold this argument are eloquent: Procter & Gamble once almost completely occupied the cosmetics and detergent market in China, and within a few years, it established more than 11 joint ventures in China; However, Coca-Cola and Pepsi-Cola caused the China beverage industry to collapse almost completely. In Hangzhou alone, more than 1,111 beverage factories were forced to stop production.

Are foreign fast food such as KFC and McDonald's the biggest obstacle to the rapid development of local fast food industry in China in China?

Professor He Minglun, an economist, holds a different view. Take the soft drink industry as an example. With the entry of multinational companies, a large number of domestic enterprises in China have closed down. However, statistics show that the market value of Coca-Cola in China and the market value of the whole beverage industry in China have increased simultaneously. More importantly, local beverage enterprises in China have also produced a number of well-known brands in the fierce competition in the future, such as Jianlibao, Coconut Tree and Wahaha. The same is true in the fast food industry. KFC and McDonald's will stimulate the growth of more local fast food. Multinational companies are like catfish in a fish pond. Putting fierce catfish in the fish pond where grass carp are raised, of course, some grass carp will be buried in the belly of catfish, which at first seems to be a loss, but grass carp have also exercised their bones and muscles in the struggle for survival, so the output of the whole fish pond has increased.

KFC, which entered the market in 2114, is such a catfish in the big ecological environment of China fast food industry.

As Mr. Chen Yaodong, the director of public affairs in China of Yum! Brands, said, "For more than ten years, KFC has not only developed rapidly in China, but also promoted and developed the establishment of a large number of local related industries standardization, forming a large-scale and virtuous circle' economic chain'."