China Herald: The KFC, McDonald's shoot-out

Ben Cavender

Both KFC and McDonald's have been struggling to keep market share in China by expanding fast. Localizing has become a key word, but sometimes at the expense of quality, says business analyst Ben Cavender in AdAge.

AdAge:

The U.S. giants have also faced headwinds from questions over their chicken supply, avian flu fears and a slowdown in economic growth. McDonald's China comparable store sales were down 3.6 % in 2013 from 2012. KFC is also revamping its China offering, with an updated menu and much-needed store renovations.

"One of the problems KFC had is they've expanded so quickly they haven't done a good job of cleaning up and modernizing stores, whereas McDonald's has been very aggressive about doing that," said Ben Cavender, principal at China Market Research Group. "We're starting to see a shift where consumers are saying they actually like the McDonald's dining experience, more than at KFC."

McDonald's is also getting more aggressive about store openings: Last year it debuted 275 China locations and this year it plans 300.

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