How Did Fast-Food Restaurant Succeed in China?

As people travel in the Chinese metropolitans today, they can easily sense the modern pulse of this ancient country. Many of the automobiles on the streets are Buicks, VWs, or Mitsubishis; the billboards promote the products of Estee Lauder and DKNY; neon lights reveal the locations of Starbucks, TCBY, and Baskin-Robbins. Of course, the biggest billboard and the brightest neon light are the fast-food restaurants: KFC, McDonald’s, and Pizza Hut.

As the first western-style fast food to land in China, Kentucky Fried Chicken opened its first restaurant in Beijing on November 12, 1987. When McDonald’s opened in 1992, the record of “attracting 40,000 customers on its first day” made headlines around the world. As of 2005, Pizza Hut has nearly 200 restaurants in more than 50 cities—included almost all the provincial capitals and large cities in China.

So how did fast-food restaurants reach such success in a country that “exported” thousands of its Chinese restaurants? Why are Chinese people so much in love with these notorious “junk foods?”

The obvious reason was perfect timing. Kentucky Fried Chicken entered China in the late 80s, when the country opened its “curtain” and decided to pursue economic success. Life quickly changed from a black and white, slow-motion film into a new and exciting colored movie. People started to earn more money, all at once calling for a faster lifestyle. The new generations experienced most of these changes: they roamed in the modern department stores, tried on the latest fashion styles, and learned about the “novel” concept of nightlife; simultaneously, they looked for different tastes to replace the traditional dishes they had grown up with. However, before the Colonel brought his fried chicken, western-style food had been a luxury for the privileged, or the westerners who stayed in the fancy hotels. When it appeared in China in 1987 therefore, KFC quickly became the western-style restaurant that was affordable for the middle-class Chinese.

Living with the Colonel’s chicken for less than three years, the Chinese became familiar with this new style of food and service. In fact, they embraced the variety of fast “junk” foods—hamburgers, pizza, and tacos. Though they might not know the exact meaning of Pizza Hut, or that KFC stands for Kentucky Fried Chicken, children in China learned quickly that fast foods were the alternatives when their parents did not have time to cook dinners.

Another reason for the successes of fast food restaurants was its dining environment. Unlike most traditional restaurants in China that only open during the lunch- and dinner-time, most fast-food restaurants had an open-door policy during the day. These restaurants were decorated in bright colors with clean settings, and often located close to the shopping districts, thus providing a relaxing environment for their customers who needed a place to rest and snack after a day of shopping, or for young people who needed a place to get together.

Of course, the uniformity of the menus was yet another important reason for fast food restaurants to be successful in China. As the economy grew, travel around the country became increasingly necessary, whether for business or for leisure needs. However, in most traditional restaurants, the types of dish would be provided were a guessing game for anyone who was unfamiliar with the areas. Walking down the streets in any cities, visitors were often hesitant about the various restaurants. A fast food restaurant, on the other hand, gave the promise of exactly the same food at any locations—this familiarity provided an apparent reason for most travelers to catch a quick meal in these restaurants.

The western marketing ideas and management styles certainly played additional roles in the success of these fast food restaurants. First, consistent quality and a friendly service were the noticeable result of the business management. In addition, the easy-repeating commercial songs, often-changing side dishes, the new concept of in-store birthday party, and well-equipped playground for children were successful marketing strategies that also paved the way for the successes of the fast food restaurants.

All of these elements provided reasons for customers of all ages to embrace this new food trend in China. As the country provides a market with billions of consumers, American fast food industry took their opportunities, expanded their Chinese divisions, and brought in billions dollar in revenues. However, the social impact of this new style of food, and more importantly the impact on its national health, should be discussed very soon, so China can still prevent this new and unhealthy eating trend to slow down the ancient country’s strong pulse.