Marketing

Topics: Fast food, Chicken, KFC Pages: 2 (654 words) Published: August 25, 2013
Nowadays, the food fast culture is very popular in Hong Kong, fast food restaurant can be found anywhere, such like McDonald’s, Starbucks, Pizza Hut and KFC, etc… For many Hong Kong people, taking fast food is just to fill the stomach, because they provide quick service and reasonable price. As there are more foreigner, such like British, American, Filipino live in HK therefore the Hong Kong people are getting more westernized hence the fast food culture is being accepted and become part of their life. Although, you can see the fast food development is successful today. Unfortunately there was a failure case in the 1970’s. The Kentucky Fired Chicken (KFC) was the pioneer to enter the Hong Kong market in 1973 and it quickly grew to 11 restaurants in the following year. By 1975, all 11 restaurants were forced to close their shutters.

There are a few reason caused the shutdown, KFC is the American fast food chain and didn’t realize the local Asian consume practice. The operation is the same as United State’s style. They only offer take away service and didn’t provide dinning in service which was totally against the HK culture. Limited menu for selection and chickens from Mainland China were used was spoiled the flavor. Apart from the operation, the economy in HK was not very wealthy and the economy was under development. The selling price was much higher then other local, for example McDonald’s sold their hamburgers for only HKD2.50 but the KCF meal with two pieces of chicken with potatoes or bread sold at HKD6.50.

KFC re-launched since 1985 by a subsidiary of the Swire Pacific Group, the first outlet was opened in September 1985 on Jordan Road and the second outlet at Causeway Bay in 1986, and both outlets were located in a high traffic, high visibility area. They have encountered the failure in the first launch, this time KFC adopted the Franchise agreement provides for buying approved equipment, service ware and cooking spices from the...
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