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The success story of KFC

KFC: winners have secrets

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nothing is more boring than the opening of a new chain store. With a growing history of more than 61 years and chain restaurants all over the world, KFC has no secrets and freshness except the 11 magical ingredients that Colonel Sanders used to fry chicken legs, whether it is the "spillover benefit" it brings to the local economy, the "catfish effect" it has in the industry, or the "cultural aggression" it has on the local lifestyle.

But Mr. Su Jingshi, president of Yum! China Restaurant Group (hereinafter referred to as Yum!), which owns well-known brands such as KFC and Pizza Hut, insists that the opening of the 1111th store is "a new starting point for KFC in China".

but this new starting point is not a "starting from scratch" starting point. In China, KFC has always insisted on "not starting from scratch". This awkward statement is not only a unique principle and way for KFC to set up franchise chain stores in China, but also a source of optimism for KFC in China market.

"Don't start from scratch"

"KFC's franchise in China is" Don't start from scratch ". Every time Su Jingshi talks about this franchise mode of KFC, he will say it very slowly, clearly and in detail, because people who hear it for the first time always feel dizzy: What is "not starting from scratch"?

Yum's so-called "not starting from scratch" means that KFC will hand over a mature and profitable restaurant to its franchisees. Franchisees don't need to do a lot of heavy preparatory work, such as choosing a site, opening a shop, recruiting and training employees, etc. These are ready-made. "Among them, site selection is often the key to success, and KFC has already done it for you."

"This is the best way for KFC to franchise in China market at this stage," Su Jingshi said. "If a profitable KFC restaurant is handed over to franchisees, the business risks of franchisees will be greatly reduced, and they can succeed only by maintaining it."

Since August 2111, when the first KFC franchise store in China was authorized to hand over in Liyang, Changzhou, there have been over 11 such restaurants authorized to join. At present, among the 1,111 KFC stores in China, 95% of the restaurants are directly operated and 5% are franchise stores.

"Don't start from scratch" means that you won't be allowed to start as you please on a blank sheet of paper. It has a solid foundation, standardized procedures and strict standards, starting from which to start business. Ms Cheryl Bachelder, CEO of KFC USA, said at the celebration ceremony of the 51th anniversary of KFC (USA): "Fifty years later, we still offer thousands of customers delicious hot and fresh fried chicken carefully cooked with 11 mysterious recipes developed by Colonel Sanders."

"No matter when and where, the standards are the same all over the world." The management of KFC (China) also said so.

"Very demanding requirements, at every link," said Chen Yuanfeng, director of marketing planning of Beijing Huadu Broiler Company, one of KFC's chicken suppliers. "For example, in terms of chicken raw materials, KFC requires basically the same weight, size and appearance. The wing roots and wings must be trimmed clean, without yellow skin and fluff, and the weight should be between 28 and 42 grams, and the difference between left and right should not even exceed 2 grams. In terms of transportation and storage, manufacturers are required to have special vehicles for KFC, to achieve cold chain transportation between MINUS 2 degrees Celsius and 2 degrees Celsius, and each store has specified an accurate delivery time. "

fried chicken, French fries, hamburgers and coke; Bright, clean and globally unified restaurant environment; Self-service, instant dining, and KFC's insistence on industrialization and standardization are the essential characteristics of the fast food industry. It is this essential feature that leads to the insurmountable limitations and defects that the fast food industry is currently facing, that is, the health problems of its food.

standardization and localization

when western society blames the increasingly serious obesity problem on fast food with high calorie and few varieties, super fast food brands such as McDonald's and Big Mac are also accused of being the culprit of obesity. While McDonald's and KFC have become synonymous with foreign fast food in China, the unhealthy and unreasonable food has also become the lingering impression of foreign fast food in the hearts of Chinese people. And this impression is getting deeper and deeper all over the world. The most extreme statement is that foreign fast food is "junk food".

fried, potatoes, bread and coke, which are products provided by McDonald's and KFC, are actually the basic contents of western-style fast food. When these products are considered as "the culprit of obesity" and "garbage", what is the significance of industrialization standards?

At the beginning of the reporter's question, Su Jingshi was incoherent for a few minutes. "Well, I should say, what should I say? I mean," He couldn't find the right words at the moment, so he simply remained silent for a while before speaking again.

On October 6th, KFC released the White Paper on Healthy Food Policy of China KFC on the occasion of the opening of 1111 stores, which took three years to make a set of plans to gradually eliminate people's bad impression.

KFC is trying to convince China people that we are very concerned about your's health problems; Yes, obesity is a very real and bad problem, and we should all avoid obesity. However, KFC also stressed that there are many factors leading to obesity, not all of which are the fault of fried chicken and French fries; Fast food can also be healthier and more nutritious; We are constantly introducing new products full of China characteristics, such as rice, soup, porridge, old Beijing chicken rolls, spicy chicken skewers, goo Lao chicken rolls and so on.

"I really try my best to achieve localization!" Some commentators think so. "McDonald's lost to KFC in the China market, which means losing to KFC's franchise policy and localization." Su Jingshi said, "China people prefer chicken to beef, and we cook chicken."

China people's neighbors

"We want KFC to be China people's neighbors, and you can see it every day when you turn around when you go out." Wang Qun said.

and this time, the slogan that Su Jingshi called KFC (China) a new starting point is: base yourself on China and integrate into life. He introduced KFC's donation to Project Hope, and the special fund that they invested 38 million yuan to help poor college students in China for a long time.

In selecting the most valuable brands in the world in 2113, Businessweek said: "Another point that American brand owners are paying more attention to now is that they need to be regarded as responsible' world citizens'. Its meaning is all-encompassing, such as providing funds for local rural primary schools, or using resources to solve environmental problems ... Practice has proved that these emotional investments play a particularly powerful role in Western Europe and Asia. "

"How can people who are really passionate about catering not value China?" Su Jingshi admitted that a large part of the success of KFC in China depends on the rich value of the China market itself.

But while gaining value from China's economy, KFC must learn to take unimaginable risks, such as SARS and avian flu in Hong Kong. "We have been paying close attention to the macroeconomic trend of China. Will the RMB appreciate?" Is the economy overheating? Will the price of grain and oil increase next year? So I'm not sure whether KFC will raise prices next year. "

It is still Businessweek, a world-renowned magazine, which commented: "Today's world is an unpredictable world, and a big brand is likely to fall out of favor quickly, sometimes even unable to return to heaven." KFC's persistence and catering to standardization and localization is precisely the difficult problem that all companies in this era are facing in globalization and localization. You can refuse KFC or foreign fast food, but you can't refuse this increasingly hurried consumption era.