Tuesday, December 21, 2010

Yum China's success secret

28 August, the United Kingdom the Economist revealed the latest statistics: baisheng flag in the global operations of the restaurant chain stores has increased to 34000, McDonald's has more than 2000. 8 September, baisheng announced this year's third quarter report (as of August 31, 2005), the Chinese market revenue growth of 11% (included in mainland China, Taiwan and Hong Kong business), higher than the average global growth baisheng 7% in August of last week, the average daily global yum opened three new stores, one in China.

Greater China President Su Jing Shi leadership of yum yum Group China once again become the key to winning the global. As of mid-2005, a total of China s baisheng 1584 home KFC, 201 home pizza, 3 tower clock Grande. Chinese market KFC chains of profits in the United States market 1/3, in the last 7 years of expansion rate as high as 70%, compared to operating income is McDonald's (China). No wonder the Economist laments: people buy yum stock not because of the United States and China. Excellent performance by China to balance the United States domestic bland, is good.

In early 2005, baisheng announced that its partner agencies complete detachment baisheng international catering group YRI (person in charge of the United States outside of international transactions), reporting directly to the headquarters of the United States. "China is our highest rate of return on investment, is the time (do this change). "Yum Global CEO Novak" global entrepreneurs "said. "Under the leadership of the USSR, China team to create a development machine. ”

War

If single to KFC and McDonalds for comparison, in the United States domestic and global markets, McDonald's is still in the upper hand: McDonald's current world 121 countries and regions with more than 30000 shop, the global turnover of about $ 406.3, Kentucky Fried chicken in the world in 80 countries and regions have a number of chain-only $ 11000. In the United States, the number of McDonald's in the shop and sales of two indicators are far ahead of KFC.

In sharp contrast to that in the Chinese market, the old enemy of competitive potential took a big turn 180 °. In terms of quantity and sales in shops, KFC has almost reached the McDonald's of 2 times.

In Shanghai Xujiahui commercial center, five around Kentucky is located in the Metro building yum China headquarters. This is a United States headquarters of incomprehensible fratricidal practices, but so that I would rather kill each other nor to the enemy. In Xujiahui, consumers want very carefully to find a McDonald 's.

KFC in China after three years, in 1990, McDonald 's, holding a "United States first brand" banner in coming. McDonald's is coming to China for continuation of the first brand in the "United States" this myth, "this has been from it tends to make United States enterprises for China Sourcing is evident," Shanghai with longitudinal s marketing consulting brand analyst hcsd000027 students told reporters, "KFC on the opposite. ”

19 September 2003, when the KFC in Xinjiang Karamay's new store opening, its popular evening scene immediately become local, KFC on the topic of the day camp 10 million, and soon the single profitable.

In order to remain at this remote town of business in China, KFC chicken and other raw materials need to be from Urumqi, the capital of Xinjiang truck transportation, time-consuming 4 hours, but also to stand the bad road conditions. The KFC's distribution system is a new test.

Yum in China itself establishes and manages the logistics network, and yum in other countries will logistics outsourcing to third-party service provider's practices. "In view of the huge scale of business, not a third party logistics enterprises or food service company to provide this service. "China baisheng logistics (Logistics China Yum!) General Manager Todd? Nelson (Todd Nelson). His subordinate enterprise manages 18 distribution centre, the distribution of products from cooking utensils to edible oil, chicken wings, to fresh vegetables, paper cups and the Eyedropper, co-edited.

In order to supply the company's in the West of the 10 restaurants, including the Karamay restaurant, yum group already in Henan established a distribution centre. But nevertheless, Henan and Xinjiang high-speed road network is still not perfect, so companies have to rely on more slowly in railway transport. Frozen and dry goods (stored at the temperature of the container) you need three to five days to delivery in Urumqi where yum has 5 restaurants and a small storeroom. Then, the product and then from there through a third-party transport by lorry to the Karamay restaurant, General weekly delivery of one to two times. Like bread, vegetables such as fresh food from a nearby city for local vendors supply, delivery 4 times per week.

KFC have long recognized that supply chain is a chain of fast food of the build have the long-term competitiveness of key factors. "KFC 85% of the raw material comes from the domestic chicken, from day one started to build up the supply chain. "Su Jing Shi enthusiastically recollections," was very interesting, only a few farms can keep out we want chicken, cut does not meet our requirements, we bought the chicken, then cut the chicken in the kitchen. ”

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