KEF China Case Study
Ten years later, KEF came back with a vengeance, eventually franchising its operations to a company called Birdman, which was backed by a group of local investors. Cuff’s rocky experience in Asia served as invaluable and relatively inexpensive lessons in preparation for its 1987 entry into China. At a time “hen Joint ventures were the only viable alternative in the late sass and early sass, KEF China selected local partners with government connections and effectively leveraged their tangible and intangible local resources.
China has on average opened more than one new restaurant a day. Now, it has over 4400 CIFS across china.
KEF was the first quick-service restaurant chain to enter China in 1987. Today, KEF is the number one quick-service restaurant brand in China with more than 4,400 restaurants in more than 850 cities. In fact, today KEF open more than one new KEF every day in China. Yum generates more than half of its overall operating profit in China, where it is the biggest Western restaurant operator with roughly 5,000 mostly KEF restaurants.
Cuff’s radical approach to China was a well-timed and wise decision.
Its success can be attributed to the fact that Cuff’s infusion of a western brand with Chinese characteristics, The decision to infuse a Western brand with Chinese characteristics was an important strategy. It portrayed a powerful image which the local population could identify with. It appealed to the locals not as a fast-food chain selling inexpensive Western-style items but as restaurants offering the variety of foods and the traditional dishes. This attracted the Chinese customers.
Menu Nile KEF in China might look like KEF on the outside, take a look at the menu, and one will find it is not the same KEF food which people are accustomed to eating.
The obvious difference is the French fries. That’s right, French fries. KEF in China has French fries, while American KEF offers potato wedges. How could KEF allow this? The potato wedges are Cuff’s signature side, as most combos are automatically served Ninth potato wedges. KEF in China also serves chicken sandwiches with corn, peas, and carrots mashed into the processed meat.
Again, a completely different sandwich than what Americans eat.
You will not tint popcorn chicken nor will you tint any resemblance of a leg and thigh meal. The KEF here also serves rice soup, almost like porridge. Just by looking at the menu one would never guess a KEF offered such. Chinese food in America is not the same as Chinese food in China.
For example, the concept of the fortune cookie does not exist in Chinese culture and is not served at the end of each meal. To the Chinese, the fortune cookie is a Chinese American Invention KEF China tended to introduce new products more frequently than their competitors in China.
Also the fact that KEF has chicken as its core product offering is very natural advantage that fits this context very well, since most Chinese prefer pork, followed by chicken; whereas beef and mutton lag far behind. So in that light, KEF enjoys a natural product advantage over McDonald’s. Although Cuff’s original swipe is accepted by most Chinese, KEF China did not stop there. The highly localized menu includes conge or Chinese-style porridge for breakfast; Beijing Chicken Roll ( la Beijing Duck) served with scallion and seafood sauce; Spicy Diced Chicken resembling a popular Chuan-style dish.
Their latest creation is you TIA or Chinese dough fritters. Today, KEF customers can purchase a bowl of conge, a rice porridge that can feature pork, pickles, mushrooms and preserved egg, as well as buy bucket of its famous fried chicken. There are many products that are especially developed according to Chinese taste, or example, hibiscus fresh vegetable soup, mushrooms and chicken porridge, traditional Beijing chicken roll, Chuan spicy hamburger and so on. The localized products are inspired by Chinese cuisine; however, they are served in a fast food way Ninth reasonable price and good timing.
At the same time, there are hamburgers, fried chips and cola available. Within the range of the Gudgeon province, in 2004 summer, a traditional herbal tea called Wangling was served officially in KEF.
It is the first time that KEF directly transited from improved products to the introduction of a completely local product. In addition to the deepening of localization strategy in China, KEF is now studying regional consumer preferences. They are implement regional localization strategy. This is based on the fact that China is country with big geography scale and verified food 35 preferences.
In short, KEF now is at the top spot of fast food industry in China, which is largely due to its localization business strategy Today KEF-China, Menu offer spicy chicken, rice dishes, soy milk drinks, egg tarts, fried dough sticks, wraps with local sauces, and fish and shrimp burgers on fresh buns.
Spiciness levels are very important to customers. In the chain’s early days, Nee the same recipes were served at all outlets, Shanghai customers complained that dishes were too hot, while diners in Chuan and Human complained that they Nerve too bland.
So the company changed its recipes to suit the regions. It also offers conge, a popular rice porridge that is hard to make at home, which is Cuff’s number one seller at breakfast. In addition to Original Recipe chicken, KEF has an extensive menu featuring beef, seafood, rice dishes, fresh vegetables, soups, breakfast, desserts, and other products that appeal to Chinese consumers’ tastes.
KEF China’s menu has evolved and become highly localized as well. It eliminated “super-size” teems altogether, and added oven-roasted chicken, sandwiches, wraps, and different proteins such as fish, shrimp, and beef.
Since 2002, KEF China has been opening for ¶restate. They introduced Chinese advocate breakfast conge, which is now the number one seller at breakfast. KEF has a menu filled with Chinese localized food as strategy to attract customers are more prefer to go to KEF for the reason that KEF provide Chinese taste food, hamburger and fried chips at same time.
Cuff’s product strategies are categorized into two aspects. . To meet consumers’ desire for Novelty by introducing western style products like Mexican Chicken Warp and New Orleans arabesque Wings.
This means can satisfy young consumers who are more open and acceptable to the foreign flavors. 2.
To cater to consumers’ taste for traditional Chinese meal by offering Chinese style fast food from time to time, say, Old Beijing Chicken Roll, a wrap modeled after the way Peking duck is served, but with fried chicken inside and accompanied with green onions and housing sauce, and Chuan Spicy Chicken which absorbs the spicy flavor of Chuan dish. Chinese-style breakfast DOD, like porridge is also served since Cot 27, 2003 on the breakfast menu of all 59 KEF restaurants in Sheehan.
The breakfast choices are a blend of East and West, ranging from Chinese seafood and chicken conge, Hong Kong milk tea to Western burgers, potato sticks and orange Juice (Adler, 2003). This measure can attract older consumers who are fond of Chinese food and in need of the convenience of fast food service as well. Based on its scrutiny and adoption of Chinese traditional culinary arts, KEF has developed a series of products which are specially designed for the tastes of Chinese consumers.
Moreover, in purpose of maintaining its image of a U. S. Brand and keeping consistent with its globalization strategy, most of Cuff’s Chinese side dishes are defined as short-term products and would be replaced by new products. KEF succeeded in China both because it was not McDonald’s and because in many ways it decided it wouldn’t be KEF either. With its “Go Global, Act Local” market penetration strategy, KEF adapted their fast-food model to fit the Chinese market by positioning itself as a native company, not a foreign.
Highlight of Cuff’s-China Menu Specialized menu items such as a Chuan cuisine influenced wrap, left, and a Dragon Twister wrap are on the menu at a KEF restaurant in Beijing. Beijing KEF Meal (Panky bread crumbs on the chicken) you get soup with every meal A chicken, bacon and mushroom rice dish, unique to China is served to a customer at KEF restaurant in Beijing KEF Egg Tarts Some facts about KEF-China * KEF China owns nearly 90% of the outlets in china compared to 12% in US and 11% in other international market. * KEF china revenue surpassed KEF US Revenue n Q 2010. In 2005 KEF China developed the concept of “New Fast Food” * Shanghai-based China Division opened 889 new restaurants in China and generated over $1 billion in operating pronto in 2 * Yum Brands, which owns KEF, says the growth has been phenomenal and is forecasting that the China market will become twice as large as the American market within five years. Cuff’s Future Outlook Despite the recent disruptions in Hum’s China operations due to the chicken scandal and the bird flu scare, it is sticking with its plans of increasing the count of CIFS.
The company will add another 700 new sites which are planned for this year, with Yum focusing more on cities outside Beijing, Shanghai, Guanos and Sheehan where it sees greater potential for growth bring the chain’s store count to almost 5,000 in China. As per Warren Lie (Predecessor to KEF China’s parent company YUM! Brands) more attention in the future should be paid to the flavor, quality and price performance of new products – not frequency of new product introduction, as this can detract consumer focus away from core products offerings.
Considering that the Chinese government is aiming for 7. 5% annual growth through 2020, compared to an average of 9. 6% since 1979. That would still increase China’s average income from $9,100 to $15,000, according to MIFF estimates quoted in a May 1 BBC News article.
Rum’s growing presence in China puts it in a great position to capitalize on that rend. As a leading fast food multinational company, Cuff’s achievement can be studied by many other companies as a successful example in China market. Cuff’s success in China is based on its understanding toward the country and the culture.
Knowing the host culture is one of the most important issues for global marketing and advertising. Ironically, Cuff’s success in the Chinese market is due in large part to the company’s dramatic shift away from the Colonel’s strict recipe policies.
One of the secrets to Cuff’s success in China is the brand’s willingness to adapt in menu and attitude. Nile the McDonald’s in China tend to sell mostly American-style burgers, Cuff’s menu features native Chinese dishes that U. S. Patrons would not recognize.
Chinese KEF restaurants offer a bevy of traditional dishes alongside familiar western menu items, such as egg tarts and conge, rice porridge available with pork, pickles, mushrooms, and preserved egg.
Additionally, Cuff’s menu includes specialty items themed to China, such as “the Dragon Twister, a chicken wrap in a Peking duck-type sauce” and an item not unlike the Crunch Wrap Supreme found in American Taco Bells.  This ad sandwich, whose name loosely translates to “Tender Beef Pentagon,” is a folded tortilla containing Chuan-style seasoned beef.
A recent addition to the spate of Cuff’s Chinese odd foreign dishes is the so-called “Taste of Ireland,” a roasted chicken flavored with Irish cream liqueur.  Cuff’s Chinese strategy has been so successful that the brand has spawned numerous imposter in the Middle Kingdom.
Restaurants such as Discos madman De Is offer up KEF-inspired meals, from fried Chicken topped rice dishes to the much-coveted Juror handbook, a “chicken meat hamburger,” the Chinese equivalent of a chicken sandwich.