Reason:
First, Wallace's labor cost is lower than KFC's. In KFC, cashier, production and cleaning are all separated, which is equivalent to assembly line workers, and each has his own duties, so there is a great demand for personnel.
Wallace has only two workplaces: the front desk and the kitchen. In the kitchen, whether it's fried chicken or making hamburgers, one person has multiple tasks. In this way, the labor cost of KFC is much higher than that of Wallace.
Second, Wallace's food cost is lower. KFC's chicken, beef and other meats have strict thawing time, and will be thrown away after that time. And in order to ensure the speed, KFC will make more than a dozen hamburgers, roasted wings and egg tarts at a time, and these foods will be thrown away after the best time. Wallace can't meet such specifications, and when frying chicken.
Wallace used a better proportion of flour in fried chicken. So although it seems that KFC and Wallace sell fried chicken legs as big, Wallace's chicken legs may be mixed with more flour, which can reduce the material cost.
Third, the cost of equipment and rent. KFC's stores are mostly located in the city's business center circle, which is a place with a large flow of people and a good location, with a large storefront area. In order to avoid competition, Wallace chose the store in a remote place, and opened more stores in small cities in the third and fourth tier, and the store area was smaller than KFC.
In this way, the cost of rent, decoration, water and electricity will be low. The kitchen equipment selected by KFC is basically imported from abroad, and a professional team is invited to deworm and clean it every month. The equipment selected by Wallace is basically made in China, and some equipment can be saved. For example, many Wallace stores don't even have ovens, so they just use microwave ovens instead.
Fourth, advertising costs. KFC is already a world-famous food brand. I believe everyone has discovered that the spokespersons of KFC are basically popular stars, and they have also spent a lot of thoughts on promoting new products. For example, 20 13 held PK activities of "Finger Sucking Original Chicken" and "Golden Crispy Chicken".
KFC invited Chen Kun and Kai Ko to speak for them, giving them a sense of existence, so KFC spends a lot of money on publicity every year. On the other hand, Wallace, you can hardly see relevant advertisements in the market.