Chinese Knots, red paper-cuts and other traditional decorations now appear in McDonald’s outlets, while the symbol of the KFC Colonel puts on Chinese costume. Meanwhile, Pizzahut adds preserved ham, a food for China’s lunar New Year, to its pizza.
When the great festival draws near, foreign fast food giants begin their new round of “changing face” actions to compete for the Chinese market.
By February 9, the white-beard Colonel, the KFC symbol, will be wearing new Chinese costume to appear in the 800 KFC outlets of over 170 Chinese cities.
“The store decoration is only a part of KFC’s localization strategy,” said Xu Zhen, PR manager of the KFC headquarters in China. “It’s more important to change operational principle.”
Ninety-five percent of KFC’s raw materials, including bread, chicken and vegetable, are purchased in China. Another fast food giant, McDonald’s, who owns nearly 500 outlets in China, gets 97 percent of the raw materials locally.
Since last year, foreign fast food restaurants have accelerated their paces to develop in China. US Subway Company, the second largest fast food brand in the world, opened nine outlets; another US fast food brand, Roasters, who opened its first shop last August, hopes to expand its outlets to 20 in one year; McDonald’s, who closed 175 outlets in its homeland, plans to open over 100 new outlets in China. In order to win over breakfast customers, KFC and McDonald’s give up their so-called international practice, and open as early as 7 a.m.
Furthermore, for catering to the Chinese people’s love for rice, KFC has added on its menu such dishes as “mushroom rice,” “chicken porridge,” and “seafood and vegetable soup.” “Of course, these Chinese food are only supplements to our core products, hamburg and fried chicken,” Xu said.
Dr. Su Changhe, an expert of globalization with Fudan University, said that the actions taken by
foreign fast food restaurants are part of their localization strategy, which helps transnational
companies to cope with local conditions and customs so as to attract more consumers.
Several months ago, KFC closed an outlet in Beijing, which had been in business for 10 years. The outlet was situated in Beihai Park, a famous Qing-Dynasty imperial garden. Because KFC’s architectural style conflicts with its surroundings, the two sides decided not to renew their contract after the current deal expired. The residents nearby comment that though KFC lost one outlet, it won people’s heart by showing respect for the traditional Chinese culture.
(China.org.cn by Tang Fuchun January 30, 2003)
