Kfc Case Study China

Kfc Case Study China-58
The restaurant management program is similarly focused. And it's perceived as something that you would do your entire life." Along with training and retaining quality employees, another key factor in KFC's success was Su's early decision to downsize his own career.

The restaurant management program is similarly focused. And it's perceived as something that you would do your entire life." Along with training and retaining quality employees, another key factor in KFC's success was Su's early decision to downsize his own career.

"Chu's acceptance and appreciation for these young employees is exceptional for Western companies to see," says Shelman.

Younger employees, for example, are encouraged to socialize over company-provided video games on their breaks.

One key issue the case examines is "how to implement the rollout of a fast-food chain involving so many stores across such a vast—and regionally different—country," says Bell, who teaches the case in the School's annual Agribusiness Seminar.

Both KFC and Pizza Hut restaurants in China differ markedly in many ways from their Western counterparts.

"There was huge camaraderie evident in the way that the top management team interacted with each other …

they bantered back and forth and poked fun at each other," Shelman says."It's a large, complex, and dynamic market that deserves single-minded attention." That attitude extends from the boardroom of Yum! A small number of items would be familiar to Western visitors—mashed potatoes, corn on the cob, fried bone-in chicken—but most would not.The Chinese KFC menu may include fried dough sticks, egg tarts (which Shelman raves are "to die for"), shrimp burgers, and soymilk drinks, as well as foods tailored to the tastes of specific regions within China. A recent case study written by professor David Bell and Agribusiness Program director Mary Shelman reveals how the chicken giant adapted its famous fast-food formula for the local market.It keeps close ties to the Chinese government, hires local management, sources food from within the country, and changes the menu to suit Chinese tastes and style of eating."They'd be walking down the hall jostling, pushing, laughing.This is a group that has worked together a long time—unusual in a country where experienced management talent is at a premium ." It turns out that unusual employee interactions, at least in comparison with Western business decorum, are the norm at Yum!Because China is so big this has a huge impact on the rest of the global food system.What happens in China, what Chinese people eat, impacts what you and I pay for food." What happened in China with Yum!And while Pizza Hut has done very well for itself with nearly 500 restaurants in 120 cities (as of December 2010), KFC's performance has been finger-lickin' incredible.Since the first piece of fried chicken (available in dark meat only, to the disappointment of many an American tourist) was served at a Beijing KFC in 1987, the number of KFCs in China has grown to over 3,000, in 650 cities, with one new restaurant opened a day.

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