China Daily Global Edition (USA)
FROM PAST TO PRESENT
What was the business like when it first opened?
It was an instant hit and we were breaking sales records almost every day. During the first year, our daily turnover peaked at 150,000 yuan ($22,790), an amount no other KFC in the world has achieved even till today despite inflation over the past three decades. It was common that customers had to wait for one or two hours outside the store. Sometimes customers would just tour the store and leave without buying anything because 2.5 yuan for a piece of fried chicken was considered too pricey.
We also had to deal with misconceptions because most Chinese customers had never been to a fast food store before. There were actually people who tried ordering chicken soup noodles or a whole chicken. Some even said they wanted to order “a KFC”. There were also people who left the counter after paying and we had to explain to them that KFC was a self-service restaurant.
Was it a big deal to work at KFC since it was so popular?
For the first few years, my family and friends did not know what I was doing. The most common question I was asked was if I fried the chickens at the restaurant. We started with 2 yuan per day and quickly progressed to 5 yuan per day. I guess we were the best-paid cashiers and waitresses in China then.
Starting from the third year of operations, KFC started to recruit again for its second location. Many of those who applied for the job had “special connections” to become a cashier or a waiter.
How has KFC in China changed over the decades?
In 1987, KFC came and offered whatever it had without knowing or caring if the consumers even wanted fried chicken. Today, Chinese consumers are increasingly sophisticated and knowledgeable, and we are making every decision based on large amounts of consumers insights and market data. Once regarded as a lavish treat that not everyone could afford, KFC is today the undisputed leader in the domestic fast food industry, with its famous offerings consumed by millions When KFC opened
dining tables.
Yu Zhilin,
How did you become a KFC toy collector?
The first toy I got was by accident. I had been dreaming about having a KFC meal for months after watching its TV commercials. My dream finally came true at the age of 12 when I was rewarded with a KFC meal for getting good grades in school.
The toy came as an extra bonus because I had the Happy Kids’ Meal. It was a blue plastic Doraemon that can be remotely controlled by sound. It was so exquisite and fun that I lost interest in many of the other toys that my parents bought for me. I stopped counting the number of KFC toys I own about two years ago — it’s just too much work. Back then, the figure exceeded 1,300.
Are you still collecting KFC toys? Why?
Yes, I am still trying to collect as many KFC toys as possible. I think the amount I have now accounts for about one-third of what KFC has introduced in China. When I first started, it was mainly a competition
Did you face any problems in collecting these toys?
The early years were difficult mainly because of money and distance. I had to be on my best behavior in order to earn a 20 yuan “KFC fund” from my mom. As I wanted to save on the 5-yuan bus fare, I would walk 40 minutes to and from the only KFC in my hometown. Doing so also allowed me to use the savings to enjoy a secret KFC meal that my mother did not know about.
When I grew older, it was the obsession with getting a complete collection that was tiring. Once, I had five kids’ meals and visited all seven outlets in my hometown within a day. Do you collect other toys? Yes, I have 500 or so toys from animations and upwards of 300 from McDonald’s. But I focus on collecting KFC toys because they came to my hometown first. Doug Young,
What were you doing in China in 1987?
I graduated from university the year before and came to Beijing in May with a friend who was very interested in China and wanted to continue his Chinese studies in Taiwan. I got a job to teach English at a university here so I came back in August and stayed for two years before going to Hong Kong.
Back then, there were no Western food establishments. The only Western food we could get was from joint venture hotels.
I was craving American food and one day someone told me there was a KFC near Tian’anmen, so I went down and saw this massive
How often do you dine at fast food restaurant now?
Almost never. It’s interesting. Now, I only go to KFC or McDonald’s when I am out of Beijing where I live, or in Chinese cities I am not very familiar with. The food is not very healthy and there are also so many other choices to choose from. But I never worry about food safety issues. I think most of the issues were merely storms in teacups. I personally believe that big chains, including Chinese fast food chains, have a higher food safety standard than the smaller shops along the street.
What do you think makes KFC bigger than McDonald’s in China?
KFC arrived five years earlier in Beijing, which is very important. Besides, I think chicken was more “Chinese” than hamburgers during those early days. Chicken is also cheaper than beef here in China and KFC is generally cheaper than McDonald’s — this makes it easier for them to penetrate the smaller cities. Guo Geping,
Was KFC the first chain restaurant on the Chinese mainland?
Definitely. Before KFC there was no such thing as a chain store. If you told a businessman that you wanted to develop your business into a chain during the 1980s or even early 1990s, they would have no idea what you’re talking about. The success of KFC in China has provided a prototype for the country’s restaurateurs and other businesses to learn from. Meanwhile, it has also helped to set up benchmarks, standards and even the whole fast food industry.
Traditionally, restaurant businesses in China refer to mom-and-pop shops. The owner sources his ingredients directly from markets, which is still the way many small eateries operate today in the country. But in Japan, a hole-in-the-wall restaurant is backed up by a very strong supply chain. It’s more than accurate to say that McDonald’s and KFC have built the food supply chain of China and reshaped the landscape of the country’s restaurant business.
“The toy came as an extra bonus.” collector 23, a college student in Weihai, Shandong province, who is an avid KFC toy “I was craving American food and one day someone told me there was a KFC near Tian’anmen.”
53, a US freelance journalist and writer who has been in China intermittently for 20 years “It’s more than accurate to say that McDonald’s and KFC have built the food supply chain of China.”
founder and director of China Chain Store and Franchise Association
Do you think KFC and McDonald’s have lost their edge in China?
In terms of size, they are still far ahead of other restaurant chains. In the top 100 rankings for the revenue of chain businesses in China in 2016, KFC and McDonald’s were the only restaurant brands on the list. KFC was 9th and McDonald’s was 26th. Together with Starbucks, the three players account for about one-third of the restaurant chain business in China.
In terms of popularity, the reasons people dine out today could be very different from decades ago. Before, there was only one reason: such foods were a special treat.
Today, the motivations could vary from not wanting to cook to people looking for a social and business meeting location. You could say that KFC and McDonald’s have returned to their roots in China — being fast and convenient instead of being a luxurious and exotic dining experience.