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In November 2006, KFC, a brand of Yum! A brand visible from space. The huge 8,128-square-meter Colonel Sanders logo was unveiled in the desert area of ??Area 51 in Nevada, USA. This logo shown to the world is the fifth generation logo of KFC launched globally. In this unprecedented project, team members experienced unexpected setbacks and hardships. A team of nearly 50 designers, engineers, scientists (including astrophysicists), architects and other professionals spent three months conceiving, creating and building the world's largest logo. This is the space-visible KFC logo assembled from 65,000 one-square-foot colorful tiles. Popular with consumers around the world. The new KFC logo launched this time retains Colonel Sanders' signature bow tie, but for the first time replaces his classic white double-breasted suit with a red apron. This red apron represents the KFC brand’s hometown-style cooking tradition. It tells customers that KFC today is still working hard in the kitchen to prepare fresh, delicious, high-quality food for customers just like Colonel Sanders did 52 years ago.

The new KFC logo adds a modern touch to KFC, one of the most reputable and popular brands in the world. The new logo will be applied

to all visual elements such as restaurant design, advertising, food packaging, employee uniforms, and public amenities.

Su Jingshi, President of Yum Brands China Division, said, "Colonel Sanders is one of the most familiar images in the world. Giving him a new look today heralds a new future for KFC." "For China For KFC, the new future is delicious, safe, high-quality and fast; balanced nutrition and healthy living; a new fast food based in China with unlimited innovation."

KFC has released its new logo simultaneously and globally this time. Whether in the United States, the United Kingdom, Australia, or China, people will continue to see KFC restaurants with new decorations. The first KFC restaurant in China to use a new logo and decoration concept is located in Wangjing Business District, Beijing. From a long-term perspective, the key to a company's success lies in its ability to formulate a strategy that suits its own strengths and environmental requirements, and to implement it effectively. With the acceleration of the globalization and integration process of the world economy and the accompanying intensification of international competition, this feature has become increasingly obvious. We believe that KFC's success in China is based on its professional strategic analysis, scientific strategic selection and effective strategic implementation.

The correct timing and location selection for entering China

In late September 1986, KFC began to consider how to enter the most populous Chinese market and explore the potential hidden in this huge market. Huge potential. Although the prospects are optimistic, many problems also make KFC's decision-makers feel headaches and hesitant. For the world's largest chicken restaurant company, the Chinese market is completely unfamiliar: Can KFC's purely Western flavor be accepted by Chinese consumers? Developing the Chinese market requires not only technical resources, but more importantly, valuable management resources. Furthermore, large amounts of hard currency profits cannot be repatriated from China, and even moderate levels of remittance are unlikely. The most critical thing is that to enter the Chinese market, you must choose a specific investment location. And this comes with a lot of uncertainty. When the situation was unclear, KFC decided to conduct a more comprehensive and thorough investigation of the Chinese market. The first question is: Where should the first KFC store be located? This decision will have a dramatic impact on future profitability, further development in other regions of China, and determination to invest management resources. KFC compared the possibility of reducing risks with the potential returns that could be obtained through investment, and considering that there were no other competitors in China at the time, it was the best time to enter. Therefore, after balancing the possible risks and benefits, we decided to temporarily use Beijing as a starting point. Taking Beijing as the first choice city for KFC to enter China has laid a solid foundation for KFC's success in China.

Strategy that combines Western culture with Chinese characteristics

In such a fiercely competitive fast food service industry, why can KFC always maintain a strong momentum of development? We believe that it was at different stages of development when it entered the Chinese market that it formulated strategies that were in line with both organizational culture and strategic logic.

First of all, during the entry period, the main strategy is to introduce a new Western-style fast food service system and catering concept.

1. With its new chain operation model of unified logo, unified clothing and unified distribution method, it finally established its position in the Chinese market by relying on its high-quality products, fast and friendly service, and clean and hygienic catering environment.

2． We have always insisted on achieving 100% localization of employees and continuously invested money and manpower in various aspects and levels of training. From restaurant waiters, restaurant managers to managers of company functional departments, the company arranges scientific and rigorous training plans according to the nature of their work. In order to enable management employees to reach professional fast food operation and management standards, KFC has also established a professional training base for restaurant management - the Education Development Center.

3. KFC's "speed-based" entrepreneurial spirit in the fast food industry places special emphasis on team spirit and relies on the high efficiency achieved through teamwork to ensure correct and rapid service during peak business hours. It has formed an efficient, flexible, complete and advanced management incentive mechanism. Its teamwork spirit and excellent management level are the secret of KFC's foothold in the market.

4． Excellent service, at KFC, you will get more service than you originally hoped to receive. KFC's purpose is to put customers first, and it is this purpose that makes every customer, whether an adult or a child, feel at home.

In the mature stage, a strategy combining Chinese and Western strategies was formulated

1. KFC has hired more than 10 domestic experts and scholars as consultants to improve and develop fast food varieties that suit the needs of Chinese people. KFC has always focused on fried chicken, cole slaw, and mashed potatoes as its main products. However, as Chinese people's dietary tastes continue to change, having too many varieties is detrimental to its development prospects. In order to cater to the tastes of the Chinese people, the United States has successively launched KFC's "Spicy Chicken Wings", "Chicken Leg Burger", "Hibiscus Fresh Vegetable Soup" and other varieties that are very popular among the Chinese people. This is a great blow to KFC, an old store that always pays attention to tradition and standardization. Said this is an unprecedented change.

2． KFC has specially established a China Health Food Advisory Committee to research and develop new food and beverage products suitable for the tastes of the new generation of Chinese consumers to further expand the market.

The establishment of franchise mode

Like operations in other regions, franchising has played an important role in KFC's expansion in China.

The so-called franchise refers to the right to use patents, trademarks, product formulas or any other valuable methods obtained by the franchisee paying a certain transfer fee to the transferor. The transferor does not control the strategy and production decision-making and does not participate in the profit distribution of franchisees. The business method used by KFC is exactly this franchise method. KFC provides brand, management and training as well as a centralized and unified raw material and service system. The partners use unified brands and services to operate, and finally both parties share according to the agreement. business interests. Because China had not yet opened up to the outside world at that time, the political risks of KFC's development in China were relatively high, and China's cultural separation was serious. Therefore, franchising became KFC's preferred business method to enter the Chinese market. Another benefit of franchising is that KFC can ensure stable income with little investment, which will leverage existing operating conditions. This is an attractive option where franchisees can easily avoid deviations from KFC's operating procedures. It is precisely because of the correct market strategy for entering China that KFC has blossomed all over China since it was introduced to China from the United States in 1986. The so-called "not starting from scratch" means that KFC will transfer a mature and profitable restaurant to franchisees. Franchisees do not need to carry out a lot of heavy preliminary preparations such as selecting locations, opening stores, recruiting and training employees, etc. These are all ready-made. Among them, location selection is often the key to success, and KFC has already done it for you.

This is the best way for KFC to carry out franchising in the Chinese market at this stage. Su Jingshi, president of Greater China of Yum China Catering Group, which owns well-known brands such as KFC and Pizza Hut, said, "Converting a profitable franchise to If KFC restaurants are handed over to franchisees, the franchisees' business risks will be greatly reduced, and they can succeed just by maintaining them.

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KFC’s “Chinese market at this stage” means: on the one hand, some Chinese companies are forming a certain economic scale and complete management systems, and chain operations are developing rapidly and gradually becoming standardized; On the one hand, due to the development of multiple economic sectors, fragmentation is a major feature. my country has not formulated such special regulations based on regional business characteristics. There is only a trial "Commercial Franchise Management Measures" with simple provisions. It is unable to assume the functions of regulating regional economic cooperation, commercial asset operations and commercial capital expansion caused by franchising.

Under such circumstances, KFC’s caution is justified. Since the application conditions for franchising were made public in the Chinese market, KFC China headquarters has received hundreds of phone inquiries and letters requesting to join almost every day. However, KFC has very strict review requirements for franchisees. In addition to having 100 In addition to the expenses of joining the franchise, store decoration, equipment introduction, etc., they must also have background and practical experience in operating catering industry, service industry and tourism industry. Considering that competition in the catering industry in big cities is already very fierce, KFC Restaurants that can be transferred are basically distributed in small cities with high consumption levels.

Since the first "not from scratch" KFC franchise store in China was authorized and transferred in Liyang, Changzhou, in August 2000. In January 2004, 11 such restaurants were authorized to join. Among KFC's 1,000 stores in China, 95% are directly operated and 5% are franchised stores.

"Don't start from scratch. "Franchise content

In terms of funds:

First, a franchise initial fee of US$37,600 must be paid at the beginning of a franchise store. This fee is a one-time fee and will be Make some adjustments based on the price index of the United States that year. At the same time, each franchisee must pay this fee when developing a new store.

Second, the transfer fee for each restaurant is RMB 8 million ( As low as RMB 2 million in second- and third-tier cities). The business area of ??a KFC restaurant ranges from 350 to 400 square meters. The RMB 8 million is a reference price for purchasing a KFC restaurant based on some comprehensive indexes. The actual transfer fee will depend on the target restaurant. It depends on the sales and profit status. After paying this fee, the franchisee can take over an operating KFC restaurant, including all decorations, equipment and facilities in the restaurant, and trained restaurant staff, including the future operation process. The cash flow and profit generated from the business. However, it does not include property rental expenses.

Third, continuing operating expenses include franchise royalties accounting for 6% of sales and advertising sharing accounting for 5% of sales. Fees. These rates and fees are set on a current basis and will remain unchanged for ten years after the franchise contract is signed.

Location:

Mainly in small and medium-sized cities in China. , areas with a non-agricultural population of more than 150,000 and less than 400,000, and annual per capita consumption of more than RMB 6,000, where KFC restaurants have opened, provide certain franchise opportunities. KFC is not allowed to use its own stores to open new stores, but only transfers KFC restaurants that are already in operation.

Time:

The time from initial application to store transfer is about 6 months; the first term of the franchise agreement is at least 10 years, and future franchisees must voluntarily engage in KFC franchising Be in business for more than 10 years, preferably 20 years.

Training:

Training is a must when joining KFC. Successful candidates will be required to participate in an extensive 12-week training program before operating a restaurant. 12 Weekly restaurant training enables franchisees to effectively master the shift management and restaurant leadership courses they need to understand to run a successful restaurant, as well as learning at various workstations such as burger workstations and French fries workstations. After the franchisee takes over the restaurant, he or she must arrange a 5-6 month internship in restaurant management. During the training process, prospective franchisees will bear their own expenses (transportation costs, living expenses).

It can be seen that behind the strict regulations of franchising, the franchisor must give sufficient support to the franchisee. Only when each franchisee makes a profit can the entire franchise system become More powerful.

On the one hand, these training courses improve the candidates' work ability and cultivate suitable management talents for KFC; on the other hand, they enable the candidates to identify with KFC's corporate culture and have a strong service concept, thereby achieving the best results for KFC headquarters and franchise stores. Grow together. As an advanced business model, franchising does have its advantages. For franchisees, a mature profit model can be obtained immediately, thereby greatly reducing investment risks. In addition to using the franchisor's trademark and trade name, the franchisee can also make use of the successful branch management models and methods that have been verified by the headquarters, and receive all-round guidance and support from the headquarters. The brand, trade name and products of the headquarters provide a basic guarantee for the franchise store business; the unified distribution system of the headquarters makes the product cost highly competitive; you can share the resources of the headquarters with the headquarters in advertising and publicity; join a good franchise The system also gives itself a bargaining chip in negotiations on procurement, financing and other aspects. Therefore, some people regard franchising as the most convenient investment method for entrepreneurs. It is like "standing on the shoulders of giants and picking peaches", which can quickly realize the dream of becoming a boss.

As a franchise owner, you will also get benefits from attracting investors to join: a one-time franchise fee paid by the franchisee to the franchisor when joining; a franchise fee drawn from the franchise store's turnover according to a certain proportion or quota. Royalty fees; profits from selling its own products (equipment) to franchisees; fees charged for distribution and training to franchised stores. There is another very important benefit: you can expand your brand and market without investing your own money, thereby suppressing competitors.

For every store transferred, KFC will receive an initial franchise fee of US$37,600, a one-time transfer fee of RMB 8 million, and an annual franchise fee of 6% of sales. and advertising, which accounts for 5% of sales, and all transferred stores are mostly in C-category cities. Such cities have relative development potential and less competitive pressure, which is conducive to investors obtaining good returns. At the same time, this also Reduce management costs and operating risks for KFC. The funds obtained through the transfer can continue to open stores, which is a risk-free and high-speed expansion path for KFC.

This new franchising method is called "Chinese characteristics" by KFC. Its essence, that is, behind the strict regulations of franchising, is the identical interest relationship between KFC headquarters and franchise stores. KFC's success depends on the success of its franchisees. Compared with some domestic chain store owners who only charge franchise fees and have no management or training for investors, KFC's strong brand awareness is another guarantee of its success.

Among the hundreds of franchise brands in China, KFC's "not starting from scratch" franchise is probably the most stable and has the best overall effect. This approach ensures the win-win situation that KFC has been pursuing - investors make money with almost no risk, and KFC expands its brand's market share with no risk.