KFC vs McDonalds

KFC vs McDonalds

Introduction

KFC and McDonald's are two representatives of American fast food brands who are operating in China. Considering the cultural differences between American and Chinese culture, whether and how they adapt themselves to the Chinese culture caught the authors' attention. This thesis aimed to explore the cultural adaptation patterns of these two brands, and find out what factors contribute to a successful cultural adaptation model from customers' perspective.

Important Aspects

In this age of internationalization, people are able to share any kinds of food from different parts of the world, thanks to the global business of food and beverage companies. As the leading driver of global growth in consumer food service, the fast food industry is reaching new consumers continually through improved menus, dining experience upgrades and rapid worldwide expansion. As representatives of this industry and experienced multinationals, the American fast food restaurant groups of KFC (Kentucky Fried Chicken) and McDonald's are dominant fast food chains both in China and other parts of the world. However, despite the dominating position of McDonald's in the worldwide fast food industry, it encountered fierce competition from KFC in Chinese market and gradually losing market share: In 2010, KFC ranked the 1st biggest fast food chain in mainland China according to the number of market share, and its market size was more than twice the number or McDonald's, which was ranking as the 2nd chair (Euromonitor International, 2012). This happened on the stage of China, an ancient country with a long-established history and unique oriental culture. As one of the possible reasons for this difference between the performance of McDonald's and KFC, the degree and ways of their cultural adaptation to the Chinese market caught the authors' attention. To adapt to a different culture is to face a big challenge and to follow a new system of rules in the specific group, which requires an open mind (Waldron, 1994).

Brief Introduction of McDonald's and KFC in China

Kentucky Fried Chicken (KFC)

Kentucky Fried Chicken (KFC) is the biggest fast food chain offering fried chicken products in the world (Deng, 2011). The mother company of KFC is YUM! Brands, Inc. It is the largest fast food chain in terms of system units—owning 38,000 restaurants around the world in more than 110 countries and regions (Yum! Brands website, 2012).

McDonald's

McDonald's is a famous and successful fast food chain in the world which owns 33,510 fast food restaurants located in 119 different countries and regions at year-end 2011 (McDonald's Annual Report 2012). On October 8th, 1990, McDonald's began its adventure in China by opening its first restaurant in Shenzhen, Guangdong Province, which is a Special Economic Zone directly supported by Chinese government. Later in April, 1992, McDonald's opened its largest restaurant in the world at that time in Beijing.

McDonald's and KFC's Cultural Adaptation Measures

Product Innovation to Cater to Chinese Taste

Both KFC and McDonald's offered some worldwide standardized main products on their menus. However, in terms of product innovation and uniqueness in Chinese market, they differ in several ...