In November 1987, the first KFC restaurant in China was opened in Beijing. On June 16, 2009, the 2,600th restaurant of KFC in China was officially opened in Zhengzhou, Henan Province. In the past 20 years, KFC has settled in my country with a rapid chain network. Coastal and even central and western cities have become the “foreign fast food” leading China’s catering industry.
Like other well-known brand chains in the world, KFC uses franchising as an effective way to expand its business around the world. In August 2000, China's first KFC franchise store with "no need to start from scratch" was officially authorized and transferred in Liyang City, Changzhou. After that, when franchisees joined KFC, they also began to work together with KFC on an equal footing, mutual benefit, and in the same boat** * Economic cooperation.
Recently, there have been posts on the Internet about whether KFC is difficult or not to join. After collecting the forum messages posted by the posters, the reporter found that netizens had doubts about KFC's franchise business in China since 1999. It is reported that the KFC franchise policy was adjusted in 2007, and the starting fee for the franchise will be reduced from 8 million yuan to 2 million yuan. The reporter conducted a thorough investigation on what kind of franchise path the "foreign fast food" will take in the Xi'an market.
It’s no use trying to get tens of millions to join KFC!
Mr. Zhou from the planning department of Songmao Group’s Xi’an company told reporters that Songmao Group is a Taiwan-owned enterprise founded in 1992. It is a KFC fast food franchised by KFC USA in Shaanxi and has been opened in Shaanxi. 27 KFC restaurants.
KFC official QQ group: 750252527
The first KFC store in Xi'an was opened in 1993. This store was located on the west side of Xi'an South Street, which means it was the first KFC store to enter the Xi'an market. The first KFC is a franchise store, but in 2004, when the KFC franchise stores were developing in full swing, Yum! Brands (Xi'an) Co., Ltd., which owns KFC direct-operated stores, suddenly entered the Xi'an market. Since then, due to the entry of directly-operated stores and the restrictions on franchise stores, KFC no longer operates franchises in Xi'an.
Why did KFC directly operate at the peak of franchise store development? Mr. Zhou said that all systems, storefronts, personnel structures, ordering channels and management of KFC directly-operated stores and franchised stores adopt the same model, but the finances are separated. In fact, Songmao Group still has the ability to open more franchise stores in Xi'an. Because of its strong financial resources, KFC does not need to introduce external funds to open stores in Xi'an. However, it is restricted by direct-operated stores, so it no longer franchises. Mr. Zhou said frankly that KFC is developing very smoothly in the Xi'an market. For such a cake, the directly-operated stores will definitely have some ideas. If direct-operated stores do not enter the Xi'an market, the number of KFC franchise stores will exceed 50 so far.
Why doesn’t Songmao Group Xi’an Company allow investors to join KFC? Mr. Zhou proudly said that it is very difficult to franchise now. Even if you have money, it is useless to join KFC with tens of millions. The franchise rights will not be released. It can be said that it is impossible for an individual to join KFC in Shaanxi. of.
China Yum Brands Co., Ltd. operates KFC and has strong funds. Only when the brand is the best will it consider franchising, and it must consider many details of the franchisees, such as whether they have worked in the catering industry, etc. , the headquarters will only consider older leaders in Parkson and let these people join the franchise. When joining a franchise, you must consider whether there is a strong entity behind it to support it. Without systematic management, the brand will definitely fail. When Songmao Group's Xi'an branch first opened its store in 1993, it did not make any money due to high costs. It would take several years to reach maturity after joining a KFC franchise.
According to the reporter’s understanding, Songmao Group has developed “Royal Coffee”, “Three Emperors and Three Comprehensive Restaurants”, “Royal Royal Kitchen”, “Old Heavenly Mother” and “Baskin-Robbins” since 2003. Ice cream and other catering projects with different characteristics are currently also introducing foreign catering projects to enter the Chinese inland market. So, as the largest franchise project of Songmao Group, will KFC fade out of the market as Songmao Group expands and strengthens other brands? Mr. Zhou said that KFC has no way to expand, but other brands are still developing infinitely. In the future, KFC franchises will become fewer and fewer.
Shaanxi is not among the cities that are not open to franchise operations
The reporter saw on the KFC International Holdings Company (KFC) website: "Currently, Beijing, Shanghai, Guangzhou, Shenzhen, Wuxi, Suzhou and Zhejiang Province is not open to franchising for the time being. Like all our international standard franchise agreements, KFC adopts a single-store franchise form, and all franchisees do not enjoy regional or business district exclusive rights. "This shows that the company. They have not given up the right to join KFC in Shaanxi. Why is Shaanxi not allowed to join KFC?
A staff member of a KFC directly-operated store told reporters that in the northwest market, KFC directly-operated stores are gradually recycling franchise stores. To join KFC, you must also be a leader at the level of restaurant manager or above of the directly-operated store. If the store does not allow franchises, it will only allow you to make money. For example, in 2005, KFC had only five or six directly-operated stores in Xi'an. Today, the number of directly-operated stores has jumped to 24. In just four years, the number of KFC directly-operated stores has soared, just because the directly-operated stores want to occupy the market.
The KFC direct-operated store opened last year in Yulin, a city with rapid economic development, has an average daily turnover of 25,000, and the weekend turnover doubles. Many wealthy bosses want to join KFC in northern Shaanxi, but they have all been rejected. It can be concluded from this that directly-operated stores will not want to lose business opportunities for projects with good development trends.
KFC’s official QQ group: 750252527
“Not starting from scratch” franchising is to transfer the entirety of a mature KFC restaurant to franchise applicants who have passed the qualification assessment. At the same time, it is authorized to use the KFC brand at the original restaurant location to continue operating. That is to say: the franchisee takes over an already operating KFC restaurant instead of opening a new restaurant. The franchisee does not need to prepare and build a store from scratch, avoiding the large and complicated work of selecting a location, opening a store, recruiting and training new employees. This reduces franchisee risks and increases chances of success. That is to say, the franchisee does not choose the address by himself, does not provide the storefront room, does not decorate it by himself... but obtains an existing KFC restaurant through "transfer".