There are already three KFC's in Xining, the capital of Qinghai Province, but there is no McDonald's

Reasons:

Mainly because Xining is a small city with few people and it is not easy to join McDonald's

Franchising is the most effective and fastest way for catering enterprises to expand. Although avoiding investment risks is also one of the most important advantages of franchising, once any franchise store fails to operate, it will cause irreparable losses to the whole system. Therefore, McDonald's obviously has a lot of work to do on how to explore the road of franchise development in China as soon as possible, and at the same time, it will not be left too far behind by KFC in the development speed, otherwise it will risk being crushed by its rivals in the China market, which McDonald's should know best. It seems that this is the main reason that forced McDonald's to franchise development in China market.

However, it is actually very difficult to join McDonald's. For McDonald's decision to start franchising in the mainland from next year, industry experts believe that it is not easy to join McDonald's. Chao Yang said: McDonald's Company has high requirements on the management level of its franchisees. At present, there are very few franchisees in China who meet the requirements of McDonald's. Even in foreign countries, McDonald's is very harsh in choosing franchisees. In some countries, applicants need to have worked in McDonald's for more than 11 years before they are eligible to apply to become its franchisees. McDonald's believes that in 2111, we can fully understand whether a person has the corresponding talents, whether he can find enough funds and whether he can run a store well. Of course, there are many ways for McDonald's to choose franchisees, but their main considerations are generally the same. It is said that in 1999, McDonald's selected only three people from tens of thousands of applicants in Taiwan Province as its franchisees, which shows the difficulty in joining.

Chao Yang believes that many people in China have a relatively shallow understanding of franchising. Many people who want to submit their applications to McDonald's will find that the practice after joining McDonald's is quite different from what they originally imagined. Maybe at first they just thought it was a good business, and they could make money after investing. It should be said that there are many people with this concept, but in fact McDonald's doesn't need such franchisees. What any famous franchise enterprise needs is a franchisee who can integrate with the enterprise in a down-to-earth manner, maintain the sustainable development of the enterprise, and have a deep understanding of the whole company system and franchise, and McDonald's is no exception. Those potential franchisees who want to join McDonald's must have at least the following four conditions: first, they have the spirit of entrepreneurship and a strong desire for success; Second, it has a strong business background, especially special skills in dealing with interpersonal relationships and financial management; Third, they are willing to participate in training programs, which need to go all out and may take one year or more to complete; The fourth is to have the corresponding financial qualifications.

Therefore, it can be imagined that even if McDonald's franchise in China, the initial speed will not be too fast. China mainland needs 8 million yuan to join KFC, and I believe that the funds for joining McDonald's will not be too small. At present, it costs about 3.3 million Hong Kong dollars to buy a new McDonald's restaurant in Hong Kong, plus a large amount of joining fee. To become a member of the McDonald's family, you need to have considerable economic strength.