Kentucky Fried Chicken owner, Yum Brands, is reaching
to China in a large-scale expansion to increase overall sales in the face of
falling domestic revenue.
It is reported that KFC was the first American fast food chain to enter the
Chinese market in 1987. The famous chain now plans to an additional 425
restaurants in the country in 2008, and hopes to eventually have more than
20,000 units open in the country, according to David Novak, chief executive of
In 2007, KFC's operating profit in its China division rose 30% to $375 mln
accounting for more than a quarter of Yum Brands' total operating profit. In the
first quarter of 2008, the company's sales in China grew 12%. This compares with
a 5% increase from international locations and 3% from locations within the
Altered KFC menu
"We felt that we could not just copy a model in a foreign country," said
Sam Su, head of Yum Brands' China division. "In a market like China, everyone
should try to create new models."
It is for this reason that chicken won't be the only thing on the menu in
Chinese KFC's. Several of the units will serve fried dough, egg porridge and
fish alongside as well.
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