the drop in Chinese customers' adoption of Western fast food between 2012 and 2015
noticed that having a meal at a McDonald’s in such places is a family affair,” Cheung said.
As part of Yum’s expansion efforts, Pant has decided to bring the Mexican-themed chain Taco Bell back to China following its failed attempt in 2003. He has chosen Shanghai’s Lujiazui financial hub as the testing ground for Taco Bell’s revival, noting that the location has an ideal combination of travelers, businessmen and consumers from the younger generation. The restaurant has also tweaked its offerings to better cater to the local palate.
Another strategy that Yum and McDonald’s have adopted is to be more mobile by embracing digital channels for sales and delivery services. The two giants have already introduced cashless payment methods by teaming up with China’s most popular e-wallet service providers Alipay and WeChat Pay and have been enticing customers with coupons available on such platforms.
In-store self-help ordering kiosks have also allowed customers to choose whether they want to dine-in or takeaway with a few taps on the screen.
“KFC and McDonald’s can still enhance their digital offerings to help shorten queue times or offer more up- market products like what Yum is already doing with Taco Bell’s range of coffee products and kiwi salads,” said Shaun Rein, managing director of China Market Research Group.
On the express delivery front, both have run or invested in courier services to tap into the growing trend of dining at home. However, the pair faces a stern challenge from local food ordering and
Fast food giants Yum Brands and McDonald’s have been experiencing slower development in China as a growing number of Chinese consumers turn to fresher and healthier Asian food.