The "joining" war between KFC and McDonald's has begun again. How many inside stories and secrets are there? Recently, KFC's franchise policy has been adjusted, and the starting point of franchise fee will be lowered from 8 million yuan to 2 million yuan, which is the first time that KFC has lowered its franchise business in China from 65438 to 0999. When McDonald's offered a low joining fee of 2.5 million yuan, KFC once said that it would never lower the threshold. This adjustment, in the view of Geping Guo, president of China Chain Store & Franchise Association, is definitely related to KFC's expansion strategy. Although McDonald's ranked first and KFC ranked seventh in the United States, in China, KFC left its competitors far behind with 65,438+0,500 chain stores (twice as many as McDonald's). In terms of turnover, McDonald's also lags behind KFC. At the end of 2004, McDonald's released the franchise rights of more than 30 cities in China, including Chongqing, and has received more than 1000 applications so far. However, after a series of reviews, McDonald's declared that by June 2006, there may be 10 people in China who are qualified to run McDonald's restaurants, and only in second-tier cities. In fact, as early as 1999, KFC began to join from scratch, and so far there are more than 60 franchise stores. However, in the battle for joining McDonald's again and again, KFC began to realize its alienation from investors. A KFC franchisee told the reporter: "In the past, KFC needed investors to invest 8 million yuan as joining fees, store decoration, equipment introduction and other expenses; The first franchise period is at least 10 years; All franchisees do not enjoy exclusive rights in the region; Moreover, franchise projects are limited to areas with a population of more than 6.5438+0.5 million and less than 400,000, and the per capita annual consumption is more than 6,000 yuan. "The person told the reporter," Although McDonald's has a small number of franchise stores, its price is obviously better than KFC, and many people who wait and see have turned to McDonald's. " "After the adjustment, the growth rate of KFC's new franchisees will definitely be faster." Geping Guo said. The industry still has doubts about the unprecedented decline of 6 million yuan. Tang Damo Brands (parent company of KFC), director of franchise development department of Yum! China Company, said: "The' joining fee' refers to the reference price of a mature and operating KFC restaurant according to some comprehensive indicators, but the fee is not fixed, and the most important indicators are geographical location and benefits. A store with good operating efficiency needs 8 million yuan to join successfully. Only some restaurants with less investment in the early stage are not prosperous, and it is possible for 2 million to join successfully. "At the same time, KFC announced that its joining cities are no longer limited to third-and fourth-tier cities. Except for first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, areas with joint ventures such as Suzhou and Wuxi, and Zhejiang Province, which has not opened its joining business for the time being, other second-and third-tier cities have been liberalized. Wang Qun, Senior Director of Public Relations Department of Yum! According to China Company, in theory, about 900 branches in Chinese mainland 1500 can be transferred except the branches in the above four cities and some joint ventures. Because the transfer price can be flexibly traded in the range of 2 million yuan to 8 million yuan, it may attract the interest of many investors. Take Shenyang as an example, the operation of 30 KFC restaurants is very good. If all of them become franchise stores, KFC alone will recover at least 200 million yuan. Hundreds of companies across the country transfer, and the amount of funds will be huge. Zhu Mingxia, a professor at university of international business and economics, said: "Franchising has eased the financial pressure and given KFC more funds and energy to open new stores. "As a franchisee, the most concerned and sensitive thing is the return on investment. Zhu Yuanhe, senior vice president of McDonald's China Development Company, said that McDonald's will generally recover its costs and make a profit within five years. For poor management, McDonald's will buy back; The relevant person in charge of KFC told reporters that they do not estimate and promise franchisees, and rely on franchisees to judge the reasonable payback period of the project. McDonald's, which is at a disadvantage in the number of stores, may feel pressure, but it doesn't seem to be "out of order". A person in charge of McDonald's in China said that McDonald's will also franchise in accordance with the established policy, and the legendary "McDonald's reduces the franchise fee" is completely false. A series of events this year show that McDonald's is reviving its performance in China through another channel. According to the news from McDonald's headquarters, in 2006, McDonald's plans to invest 65.438+0.8 billion US dollars to open 800 branches around the world, of which 654.38+0.25 new stores will be located in China. This includes the fist business model "Drive-thru" recently launched by McDonald's. After more than ten years of exploration in China market, McDonald's finally found a new development direction. If the traditional restaurant is the first generation product of McDonald's in China, then the drive-through is the second generation product of McDonald's, which will be the focus of McDonald's future development in China. We should open as many drive-in restaurants as possible. " Xerox, CEO of McDonald's (China) Co., Ltd. said. Drive-ins usually have three windows. Drivers can order food at the first window, pay at the second window, pick up things at the third window and drive away. The whole journey should not exceed 10 minute. McDonald's has opened several such drive-in restaurants in China. Xerox said that McDonald's has about 65,438+3,000 branches in the United States, and 65% of its sales on average come from drive-in orders. Drive-thru is the most important cash cow for McDonald's. Now, the automobile market in China is expanding, and the per capita automobile share is rising. In the next three years, McDonald's plans to open 12 to 15 drive-through restaurants every year, and has selected 70 potential locations.

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