Once a prime destination for eating out in China, the public outlook of KFC has transformed. As of now, the people of China think the restaurant serves ‘cheap greasy fast food’.
When the first outlet was opened back in 1989, the Chinese diners were eager to try out the original recipe fried chicken. Fried chicken had always been a part of their cuisine as opposed to other fast foods like the hamburger. For Chen Haiwen, like many others during the early 90’s, dining out at KFC was considered a luxury meal, a place frequented by the rich.
Over the years however, KFC has grown to become one of the largest fast food chains in the country with over 4,800outlets nationwide. This was a high rate of success for the fast food brand and its parent company – YUM Brands. This success can be attributed to KFC being one of the first American fast food companies to enter the Chinese market as well as their very local menu among other things, which attracted people of all ages.
The recent food safety scares in China over the last two years have resulted in a slew of suppliers and food service providers scrambling to get ahead of the problem. The fast food industry was one of the most heavily hit by issues such as antibiotics used in chicken growth resulting in fear of development of highly resistant superbugs.
Issues like these have lead worldwide fast food giants like KFC to switch over to antibiotic-free meats. Awareness of food safety issues and scandals, have resulted in a temporary fall in the number of people visiting these fast food chains. These issues, amongst others have resulted in a noticeable revenue reduction for the parent company.
This prompted the question of whether or not to spin off their fast food chains’ operations in China. However according to senior officials at Yum Brands, 2015 is expected to show a return in revenue of the kind experienced before these issues had occurred.
