Kfc In China Competitors And Strategy

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Competitors Kentucky Fried Chicken(KFC) competes with many of the same international competitors they face in the US, along with new, different competitors that are indigenous to China on the local or regional level. Some of the same companies KFC competes with in the United States, like McDonalds and Burger King, are the same competitors they face in China. However, KFC must mainly fight the local fast food restaurants for market share. After the millennium, Chinese fast food restaurants began to go on the rise. During 2007, the domestically owned Chinese fast food restaurants accounted for 80 percent of the total fast food industry. One of the largest fast food restaurants in China, Kung Fu Catering opened their 200th store in 2007. Kung Fu Catering also announced that year that they would standardize their operations with the help of a Chinese Technology University. This is to help Kung Fu Catering compete with the foreign restaurants by ensuring the quality of every order and making sure every order is ready in less than 80 seconds. These Chinese restaurants are trying very hard to compete with foreign companies, but due to lack of investment funds in China it is hard for them to expand. For that reason, most are turning to venture capitalists and the capital market for an initial public offering on the stock market. In 2007, Kung Fu Catering received 300 million yuan from venture capital investment for their expansion in China. Another competitor based out of Japan, called Wei Qian La Main, or Aijsen Ramen, has challenged KFC on winning a portion of the market share by catering to consumers interested in local specialties. Wei Qian La Main has been gaining popularity in several Chinese cities over the last few years with this strategy(China Daily 2008). KFC is the top selling fast food company in China and has almost three times the amount of

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