By LI Ye
KFC opened its 10,000th store in China on December 15, the first overseas brand to do so.
KFC’s recent successes are based on improvements to the supply chain and digital management. Parent company Yum China has more than 800 suppliers, and in the next three years plans to invest up to US$5 billion (36 billion yuan) in supply-chain infrastructure and tech.
KFC drives the chicken supply chain in China, benefiting other entrepreneurs.
In the chain restaurant industry, the only real interest is in the number of outlets and homogeneity of production—return on investment matters, and very little else. The actual food is a very minor consideration, so long as the same product is on offer everywhere.
New players remain keen on following the Western model to produce “Chinese-style” chicken or burgers, like US-style “Chinese” food: culinary cultural appropriation with questionable results. China had several thousands - perhaps millions - of recipes for chicken before KFC showed up with its single, all-encompassing flavor.
Other chain restaurants - coffee and tea shops mostly - are fully committed to lower prices in the context of declining customer enthusiasm. Although McDonald’s and KFC have also introduced low-priced meals, they still charge more than local brands like Tastien and Wallace.
