In p>1998, there were three famous brands of catering system (KFC, Pizza Hut and Taco Bell) (this system is a business department of PepsiCo, and PepsiCo's three major businesses are soft drinks, snacks and fast food. ) When it was separated from PepsiCo and listed on the new york Stock Exchange independently, Yum! Global Catering Group, the largest catering group in the world, was formally established. At that time, all shareholders and company members may not have thought that the operation and development of Yum! Global Restaurant Group has achieved great success in the past two years. Today, Yum! Brands has more than 31,111 chain stores and 511,111 employees worldwide, with a turnover of 21 billion US dollars, ranking among the top 511 enterprises in the world.

When it was just separated from Pepsi, Yum! Global Restaurant Group not only had to make up for the losses caused by the past, but also faced a serious challenge: how to create a corporate culture? How to establish a cooperative relationship between three famous catering brands, rather than a competitive relationship? How to establish employees' confidence in the future development of the enterprise. At that time, under the co-chairmanship of Mr. Pearson Andrakk Pearson, the former president of PepsiCo Group, and the first CEO of Yum! Group, and Mr. * * of Novak David Novak, the company maintained a feasible organizational structure before separation in many aspects, and outlined new development goals for the company in the future.

They have taken a series of bold and brand-new measures: KFC, Pizza Hut and Taco Bell continue their original operation and management, but they should play a coordinating role with each other; Through the package form, the three brands are jointly promoted, and the raw materials are uniformly purchased and distributed by the company, which controls the balanced expenditure of funds; For the first time, some chain restaurants owned by the company will be transferred to franchise partners in the form of franchising, and part of the returned funds will be concentrated on the development of new restaurants; The senior management personally went to the restaurant to motivate the staff. So far, the group's operating profit margin has increased from 11% three years ago to 16%, and the chain turnover of all three brands has increased in the whole year of 1998 and the first half of 1999, and the group has seen a new scene of prosperity.

China market is one of the fastest growing and most promising markets in the global strategy of Yum! Global Restaurant Group. China Baisheng Restaurant Group is a cooperative development headquarters established in China by an international company under Yum Global Restaurant Group. Since KFC opened its first restaurant in China in Qianmen, Beijing in 1987, it has established 19 limited companies in Beijing, Shanghai, Hangzhou, Qingdao, Nanjing, Guangzhou, Suzhou, Wuxi, Tianjin, Fuzhou, Shenyang, Xi 'an, Chengdu, Wuhan, Shenzhen and Harbin? By the end of 2111, more than 411 restaurants had been opened in nearly 81 cities and regions. So far, KFC has become the largest and fastest-growing fast food enterprise in China.

our reporter and two members of the China MBA website (www．mba．org．cn), with the cooperation of Beijing KFC Co., Ltd., finally completed the writing of this case after more than two months' efforts. When interviewing KFC, a model of catering franchise, our deepest feeling is that KFC is an enterprise with a clear strategy and can successfully implement this strategy. It is also people-oriented, and it is also a stable operation. The management theory is the same, but it is very different when it is done. A perfect business strategy, if poorly implemented, will eventually become penniless; Only when an appropriate business strategy is determined, supplemented by a satisfactory implementation, can the enterprise be invincible and prosperous.

As an international catering giant, KFC has too many places worthy of discussion and in-depth study, and this case only involves a small part of them. Why did KFC make such a decision? How is KFC implemented? How did it get in place? These are the three most concerned issues in this case.

KFC's own strength, long-term strategic objectives and management are highly unified and mutually supportive. In order to develop the fast food industry and franchise industry in China, we should learn from KFC, but at the same time, we must proceed from our own reality and combine its successful experience with the actual situation of our company, so as to learn something. Due to the long length of the case, this newspaper will publish the case content twice. The content of this issue is the long-term goal, marketing and site selection strategy; The next issue covers franchising, corporate culture, supplier management and employee training? See China Business News on February 27th.

location strategy

location is the primary factor of hotel management, so is restaurant chain management. The correct location of chain stores is not only a prerequisite for its success, but also a prerequisite and foundation for realizing standardization, simplification and specialization of chain stores. Therefore, Kendeji attaches great importance to the location of fast food restaurants. The location decision is generally based on two-level approval system, with the consent of two committees, one is the local company and the other is the headquarters. Its site selection success rate is almost 111%, which is one of KFC's core competitiveness.

the location of KFC is selected according to the following steps.

★ Division and Selection of Business Circle

1. Division of Business Circle

When KFC plans to enter a certain city, it will first collect the information of this area through relevant departments or professional investigation companies. Some materials are free, and some materials need to be bought. After buying all the information, we began to plan the business circle.

Business district planning adopts the scoring method. For example, there is a large shopping mall in this area. If the turnover of the shopping mall is RMB 11 million, one point will be counted, and RMB 51 million will be counted as five points. How many points will be added for a bus line and a subway line? These scoring standards are a more accurate empirical value averaged over the years.

business districts are divided into several categories by scoring. Take Beijing as an example, there are municipal-level commercial types (Xidan, Wangfujing, etc.), district-level commercial types, fixed-point (target) consumption types, community types, social and commercial dual-purpose types, tourism types and so on.

2. Choosing a business circle

means determining which business circle to focus on and what are the main goals. In the selection criteria of business circle, on the one hand, we should consider the restaurant's own market positioning, on the other hand, we should consider the stability and maturity of business circle. The market positioning of restaurants is different, the customers they attract are different, and the choice of business circle is different.

For example, Malan Lamian Noodles and KFC have different market positioning and different customer groups, which are two "intersecting" circles. Some people eat KFC and Malan Lamian Noodles, while others may never eat KFC and specialize in Malan Lamian Noodles, and vice versa. The location of Malan Lamian Noodles is certainly different from KFC.

KFC and McDonald's have similar market positioning, and the customer groups basically overlap, so the choice of business circle is the same. As you can see, some places are on both sides of the same street, with McDonald's on one side and KFC on the other.

the maturity and stability of the business circle are also very important. For example, the Planning Bureau said that a certain road needs to be opened and where to set up an address. In the future, it may become a mature business circle, but KFC must wait until the business circle is mature and stable before entering. For example, how good the benefit of this store will be after three years, which will not help today. Is it necessary to lose money in these three years? It costs millions of dollars for KFC to invest in a store. Of course, it must be a relatively stable principle to ensure a successful one.

★ Calculation and selection of gathering points

1. Determine where the most important gathering points are in this business circle.

For example, Xidan in Beijing is a very mature business district, but it is impossible for Xidan to be a gathering place anywhere. There must be the most important gathering place for guests. The principle of opening a KFC store is: strive to open a store in and near the most crowded places.

In the past, the old saying goes, "One step is worse than three cities". The address of the store is one step away, and there may be a 31% difference in business. This is related to the moving line of people's flow (the line of people's flow activities). Someone may come here and turn, then this place is where the guests can't go, not far from an alley, but the business is much worse. All these should be taken into account when choosing the site.

What is the pedestrian flow line like? In this area, which direction people go after getting out of the subway, and so on. These are all sent to pinch the meter and measure it. Only after a complete set of data can we determine the address accordingly.

for example, the measurement of the flow of people in front of the store is to record the flow of people passing by at the place where the store is planned to open, and measure how many people pass by the place in the unit time. In addition to the pedestrian flow on the sidewalk where the location is located, it is also necessary to measure the pedestrian flow in the middle of the road and across the road. Those in the middle of the road are only cyclists, not drivers. Whether the traffic across the road is counted depends on the width of the road. Even if the road is narrow, even if the road width exceeds a certain standard, it is generally a barrier, so customers can no longer come to spend, so it is not counted as the traffic across the road.

KFC site selection personnel will input the collected data of people flow into special computer software, and they can calculate that the amount of investment here should not exceed, and the store cannot be opened beyond that.

2. When selecting the site, we must consider whether the main moving line of people flow will be stopped by competitors.

because people's loyalty to the brand has not yet been said, I eat KFC and get tired of seeing McDonald's, as if this has not happened yet. As long as you are in front of me, I am very tired today. Why do I have to walk another 111 meters to eat something else? I am ahead of you. I won't move forward unless there are so many people here that I can't find a seat.

But the flow of people has a main line, which will have an impact if the competitor's gathering point is better than KFC's location. It doesn't matter if they are the same. For example, there is a KFC store at the intersection of Beitaipingzhuang in Beijing. If it is 111 meters to the west, it will be inappropriate for competitors to open another western-style fast food restaurant, because the main passenger flow comes from the east, and then it will be stopped by KFC, and the benefit of opening a store will not be good.

3. The choice of gathering points affects the choice of business circle

The choice of gathering points also affects the choice of business circle. Because whether there are major gathering points in a business circle is an important symbol of the maturity of this business circle. For example, a new residential area in Beijing has a large number of residents and a high population quality. However, according to the survey, we can't find the main gathering point in this area, so we may not open a store at this time. When the community is mature or more mature, we will know that one of them is indeed the main gathering point.

in order to plan the business circle well, the development department of KFC has made great efforts. As far as Beijing KFC Company is concerned, its development department staff have traveled all over Beijing all the year round, and they are familiar with this place where buildings and roads change greatly every year and local people are easy to get lost. This often happens. Beijing KFC Company received a phone call from a customer and suggested that KFC set up a shop in his place. As soon as the developer heard the address, he could casually tell whether the local business environment was suitable for opening a shop. In Beijing, KFC has successfully opened 56 restaurants according to the business circle divided by its own investigation.

Long-term goal

★ The problem of growth is very important for any company. Any successful enterprise must have a long-term goal, attract outstanding talents to join and contribute to the community, and companies that cannot determine their strategic goals will be eliminated quickly.

This is especially true as a franchise enterprise. Of course, all franchisees of KFC join in order to enjoy the good development prospect of KFC. The establishment of long-term goals depends on the examination of the company's external environment, the confirmation of the company's mission and the expectation of the ability platform needed to complete the company's mission.

in the early 1991s, when Mr. Su Jingshi, the president of KFC China Company, came to China, he explained to his employees the long-term goal of KFC: to make the brand of KFC in China the first brand in the catering industry in China, even the most popular brand in the world. During the development of the company, Mr. Su Jingshi worked with managers at all levels to constantly publicize and expound this goal. Every new employee at Kendeji knows this goal on the first day of work. This makes all employees of KFC have a blueprint for the development of the company, and a vision of * * *. Everyone knows what KFC will be like in the future.

★ KFC has the strength to achieve such a long-term goal.

1. Although KFC is coming to China for the first time, it has enough strength to fully develop the China market and achieve the long-term goal with its years of global expansion of thousands of branches and international management experience.

2. The long-term goal of KFC is feasible.

This is based on a rigorous analysis of China's society, its structure, market and customers. As a mid-range fast food, without a mature business circle, it will not be able to support the passenger flow required for its daily operation. Therefore, the number of mature business districts in major cities in China in the next few decades will determine the market development potential of KFC. Based on the optimistic estimation of China's economic prospects and development momentum, KFC predicts that it will have a broad development space in China.

in addition, the opportunity for KFC to enter the China market is very good. At that time, the catering industry in China, especially the franchise catering industry, was far from mature. As the first international franchise catering giant to enter China, as long as it seized the opportunity to develop hard, it could become the first brand in China's fast food industry.

3. The long-term goal of KFC is consistent with the characteristics of its franchise.

KFC, as a franchise industry, is different from many other industries in that it is highly risk-averse. Because once the restaurant chain has established a good corporate image, it can make all chain stores enjoy the benefits. But correspondingly, once any store has problems, the whole brand will be affected. So its ability to resist risks is very fragile.

KFC is constantly exploring new markets in China, but since it is a franchise, it must try its best to avoid risks and ensure that the brand will not depreciate due to expansion, which is always a process of brand appreciation. That is, no matter how to expand, we need to operate steadily. The combination of the two is included in KFC's long-term goal of becoming the first brand in China's catering industry.

★ After more than ten years of development, KFC has become the largest and fastest-growing fast food enterprise in China; According to a questionnaire survey conducted by the world-renowned AC Nielsen research company in more than 31 cities in China, KFC is widely known and loved by consumers in China, and is recognized as a brand that customers patronize most, ranking first among the top ten internationally renowned brands. KFC can be said to have a double harvest in market share and reputation, which is closely related to the correctness and feasibility of its long-term goal formulation.

Up to now, China's catering industry has made great progress, international chain catering giants have rushed to China, and domestic catering industry is also eager to try, while the market potential of China's catering industry is still very large. The long-term goal of KFC becoming the first brand of China's catering industry is still applicable, guiding KFC to a new journey.

in the eyes of all employees of China KFC, the development of more than 411 stores now is only a part of the expected long-term goal, not the final result. Just like a small seedling, after more than ten years of cultivation, it takes root and grows leaves, and gradually becomes a big tree, full of vitality and boundless future.

if you look back? Mr. Su Jingshi was at the beginning of KFC's entry into China