1. KFC’s success in China By Sakina Mohammed

2. Key Highlights KFC – largest restaurant chain in China with 4500 outlets in 900 cities 40% share of the Chinese fast food market McDonald’s market share is 16%, with only about 2000 outlets.

3. Timeline 1973 – KFC opens 11 outlets HongKong 1983 – KFC unsuccessfully ventures into Taiwan 1986 - PepsiCo acquires KFC 1987 - First restaurant opened in Tiananmen Square 1989 - Sam Su joins KFC China as Regional Marketing Director 1997 - Spun off by PepsiCo as Tricon Global Restaurants, Inc 1997 – Sam Su becomes president of China Division 2002 - Tricon changes it’s name to YUM Brands 2010 - Sam Su became CEO and chairman of YUM Restaurants, China

4. Strategies For Success in the Chinese Market Menu Restaurant Layout Training Locations and Logistics

5. Menu Expanded menu to suit the Chinese palate 50 new products introduced each year Recipes adapted to suit regional tastes

6. Restaurant Design Twice the size of US outlets Larger kitchens Family-oriented ambiance

7. Training Intensive hands-on training program for new employees Focus on safe food-handling practices and customer service

8. Location and Logistics Focus on smaller cities for greater visibility Established distribution network with warehouses and fleet of trucks Temporary warehouses and reserved space on cargo planes for weather emergencies Most ingredients purchased locally Strong supplier relationships

9. Comparison of KFC US and China Operations China Sales up 16% Profit Margin – 22% 50 menu items Family style dining Company-owned United States Sales down 2% Profit Margin 11% 29 menu items Take-out focused Franchised

10. Bibliography Bell, D. & Shelman, M.L (2011). KFC’s Radical Approach to China. Harvard Business Review. Retrieved from https://hbr.org/2011/11/kfcs-radical-approach-to-china KFC’s Winning Recipe in China: “Go Global, Act Local” Retrieved from http://www.growthcloud.com/growthspace/kfcs-winning-recipe-in-china-go-global-think-local/ Yum! Senior Officers. Yum! Brands. Retrieved from http://www.yum.com/company/srofficers.asp Mellor, William (2011). McDonald’s No Match for KFC in China as Colonel Rules Fast Food. Bloomberg. Retrieved from http://www.bloomberg.com/news/2011-01-26/mcdonald-s-no-match-for-kfc-in-china-where-colonel-sanders- rules-fast-food.html