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In June 2006, Yum!' s brand KFC! Brand group became the first brand in the world to see from space. The giant Colonel Sanders logo with an area of 8 128 square meters appeared in the desert area of 5 1 Nevada, USA. This logo displayed to the world is the fifth generation logo launched by KFC in the world. In this unprecedented project, team members experienced unexpected setbacks and hardships. A team of nearly 50 designers, engineers, scientists (including astrophysicists), architects and other professionals spent three months conceiving, creating and building the world's largest symbol. This is a KFC logo visible in space, which is assembled from 65,000 colored tiles of 1 square foot. It is welcomed by consumers all over the world. KFC's new logo retains Colonel Sanders' iconic bow tie, but for the first time, he changed his classic white double-breasted suit into a red apron. This red apron represents the cooking tradition of KFC's hometown flavor. It tells customers that KFC today is still trying to cook fresh, delicious and high-quality food for customers in the kitchen like Colonel Sanders 52 years ago.

The brand-new KFC logo adds a sense of modernity to KFC, a world-renowned and popular brand. The new logo will be applied

To restaurant design, advertising, food packaging, staff uniforms, public goods and other visual elements.

Su, President of Yum! Brands China Division! The brand group said, "Colonel Sanders is one of the most familiar images in the world, and giving him a new image today indicates the new future of KFC." "For KFC in China, the new future is delicious, safe, high-quality and fast; Balanced nutrition and healthy life; Based on China, innovate new fast food ".

This time, KFC released a new logo on a global scale. No matter in the United States, Britain, Australia or China, people will see KFC restaurants with new clothes one after another. China's first KFC restaurant with brand-new logo and decoration concept is located in Wangjing business district. In the long run, the key to the success of an enterprise lies in whether it can formulate a strategy suitable for its own strength and environmental requirements and implement it effectively. With the acceleration of globalization and integration of the world economy and the intensification of international competition, this feature is becoming more and more obvious. We believe that the success of KFC in China is based on its professional strategic analysis, scientific strategic choice and effective strategic implementation.

The timing of entering China and the correctness of site selection

1986 In late September, KFC began to consider how to enter the most populous China market and explore the huge potential contained in this huge market. Although the prospect is optimistic, many problems also make KFC decision makers feel headache and hesitation. For the world's largest chicken restaurant company, the current China market is completely unfamiliar: Can KFC's pure western flavor be accepted by China consumers? Developing China market requires not only technical resources, but also valuable management resources. Moreover, it is impossible to remit a large amount of hard currency profits from China, even at a moderate level. In order to enter the China market, the most important thing is to choose a specific investment location. And this has great uncertainty. When the situation was unclear, KFC decided to conduct a more comprehensive and thorough investigation on the China market. The first question is: Where should the first KFC store be located? This decision will have a great impact on future profits, further development in other parts of China and the determination to invest and manage resources. KFC compares the possibility of reducing risks with the potential benefits that may be obtained through investment, and thinks that there are no other competitors in China at that time, which is the best time to enter. Therefore, after weighing the possible risks and benefits, I decided to take Beijing as the starting point for the time being. Taking Beijing as the first choice for KFC to enter China has laid a solid foundation for KFC's success in China.

The Strategic Conception of Combining Western Culture with China Characteristics

In the fast food service industry with such fierce competition, why on earth can KFC maintain a strong development momentum? We believe that it is in the different development stages of entering the China market that it has formulated a strategy that conforms to both organizational culture and strategic logic.

First of all, when entering the period, the main strategy is to introduce a brand-new western fast food service system and catering concept.

1. With its brand-new chain operation mode of unified logo, unified clothing and unified distribution, it finally established its position in the China market with its high-quality products, fast and friendly service and clean and hygienic catering environment.

2. Always adhere to the localization of 100% employees, and constantly invest funds and manpower in training at all levels. From restaurant waiters and restaurant managers to functional department managers, the company arranges scientific and strict training plans according to the nature of work. In order to make managers reach the professional fast food management level, KFC has also set up a professional training base suitable for restaurant management-Education Development Center.

3. KFC's "speed-oriented" fast food enterprise spirit makes it pay special attention to team spirit and rely on its team cooperation to achieve high efficiency, thus ensuring correct and fast service during business peak hours. It has formed an efficient, flexible, perfect and advanced management incentive mechanism, and team spirit and excellent management level are the secrets of KFC's foothold in the market.

4. Excellent service. At KFC, you will get more services than you originally hoped. The tenet of KFC is customer first, and it is this tenet that makes every customer, whether adults or children, feel at home.

In the mature period, the strategy of combining Chinese and western culture was formulated.

1. KFC hired more than 10 domestic experts and scholars as consultants to improve and develop fast food varieties suitable for China people. KFC has always used fried chicken, shredded vegetable salad and mashed potatoes as its main varieties, but the dietary tastes of Chinese people are constantly changing, and the varieties are too single, which is unfavorable to its development prospects. In order to cater to the tastes of China people, Laomei successively introduced KFC's "Spicy Chicken Wings", "Chicken Leg Fort" and "Furong Fresh Vegetable Soup", which were deeply loved by China people. This is an unprecedented change for KFC, an old shop that has always paid attention to tradition and norms.

2. KFC has set up China Healthy Food Advisory Committee to research and develop new food products suitable for the new generation of consumers in China, and further expand the market.

Establishment of franchise mode

Like other regions, franchising has played an important role in KFC's expansion in China.

The so-called franchising refers to the right to use patents, trademarks, product formulas or any other valuable methods obtained by the franchisee by paying a certain transfer fee to the transferor. The transferor does not control the strategy and production decision, nor does it participate in the profit distribution of the franchisee. The management mode adopted by KFC is just a franchise mode. KFC provides brand, management and training, as well as a centralized and unified raw materials and service system. The partners use a unified brand and service to operate, and finally the two parties share the commercial benefits according to the agreement. Because China was not open to the outside world at that time, the political risk of KFC's development in China was great, and the cultural isolation in China was serious, so franchising became the first choice for KFC to enter the China market. Another advantage of franchising is that KFC can guarantee a stable income with little investment, which will make use of the existing operating conditions. This is a very attractive choice where franchisees can easily avoid deviating from KFC's operating rules. It is precisely because of the correct market strategy to enter China that KFC has blossomed everywhere in China since 1986 was introduced to China from the United States. The so-called "not starting from scratch" means that KFC will hand over a mature and profitable restaurant to franchisees. Franchisees don't need to do a lot of heavy preparations, such as site selection, opening stores, recruiting and training employees, etc. These are ready-made. Among them, site selection is often the key to success, and KFC has helped you do it.

This is the best way for KFC to franchise in China market at this stage. Sue Shi Jing, President of Yum! Brands! China Catering Group in Greater China, which owns well-known brands such as KFC and Pizza Hut, said, "If a profitable KFC restaurant is handed over to franchisees, the business risks of franchisees will be greatly reduced. Only by maintaining it will they succeed."

The meaning of KFC's "current China market" is: on the one hand, some China enterprises are forming a certain economic scale and perfect management system, and the chain operation is developing rapidly and gradually standardized; On the other hand, due to the development of various economic components, fragmentation is a major feature. There is no such special provision for regional commercial characteristics in China, but only a trial "Measures for the Administration of Commercial Franchise", which has simple provisions and cannot undertake the functions of regulating regional economic cooperation, commercial asset operation and commercial capital expansion brought by franchising.

Under such circumstances, KFC's caution is justified. Since 1998 KFC publicly applied for franchise in China market, KFC's China headquarters has received hundreds of consultation calls and letters requesting franchise almost every day. However, KFC's audit requirements for franchisees are very strict. Franchisees should not only have1000000 USD or 8 million RMB as expenses for joining, store decoration and equipment introduction, but also have background and practical experience in catering, service and tourism. Considering the fierce competition in the catering industry in big cities, KFC's transferable restaurants are basically distributed in small cities with high consumption levels.

From August 2000, when the first KFC franchise store in China was handed over in Liyang, Changzhou, to 1 month in 2004, 1 1 restaurants were authorized to join. Of KFC's 65,438+0,000 stores in China, 95% are direct stores and 5% are franchise stores.

"Not from scratch" franchise content

In terms of funds:

First of all, the franchise store must pay an initial franchise fee of $37,600. This fee is one-off and will be adjusted according to the price index of the United States that year. At the same time, every franchisee must pay this fee when developing a new store.

Second, the transfer fee for each restaurant is 8 million (as low as 2 million in second-and third-tier cities). The business area of KFC restaurants ranges from 350 to 400 square meters. This 8 million yuan is the reference price for buying a KFC restaurant according to some comprehensive indicators. The actual transfer fee will depend on the sales and profits of the target restaurant. After paying this fee, the franchisee can take over an operating KFC restaurant, including all the decoration, equipment and facilities of the restaurant, as well as the trained restaurant staff, including the cash flow and profits generated in future operations. But it does not include the cost of real estate leasing.

Third, the cost of going concern includes the franchise fee accounting for 6% of sales and the advertising share fee accounting for 5% of sales. These rates and fees are formulated on the current basis and will remain unchanged for ten years after the franchise contract is signed.

Location:

Mainly in small and medium-sized cities in China, the non-agricultural population exceeds 1.5 million, less than 400,000, and the annual per capita consumption exceeds 6,000 yuan. The areas where KFC restaurants have been opened provide certain opportunities for joining. KFC is not allowed to use its own storefront to open new stores, only transferring KFC restaurants that are already in operation.

Time:

The time from the start of application to the transfer of the store is about 6 months; The initial term of the franchise agreement is at least 10 years, and future franchisees must voluntarily engage in KFC franchise for more than 10 years, preferably 20 years.

Training:

To join KFC, training is a must. Successful candidates will be required to attend an extensive training program lasting 12 weeks before running the restaurant. The restaurant training lasting for 12 weeks will enable franchisees to effectively master the courses such as duty management and restaurant leadership that they need to know to run a successful restaurant, including the study of various workstations such as Hamburg workstation and French fries workstation. After the franchisee takes over the restaurant, he will also arrange a 5-6 month internship period for restaurant management. In the process of training, future franchisees should bear their own expenses (transportation expenses and living expenses).

It can be seen that behind the strict provisions of franchising, franchisers must give sufficient support to franchisees. Only when every franchisee is profitable can the whole franchise system become stronger. On the one hand, these training courses improve the working ability of candidates and cultivate suitable management talents for KFC; On the other hand, candidates can identify with KFC corporate culture and have a strong service concept, so as to realize the common growth of KFC headquarters and franchise stores. Franchising, as an advanced business model, does have its advantages. For franchisees, a mature profit model can be obtained immediately, thus greatly reducing the investment risk. Franchisees can not only use the franchiser's trademark and trade name, but also use the successful branch management mode and method verified by the headquarters, and get all-round guidance and support from the headquarters. The brands, trade names and products of the headquarters have the basic guarantee of franchising; Headquarters unified distribution system, making product cost more competitive; Can share with headquarters resources in advertising; Joining a good joining system also gives you a bargaining chip for purchasing and financing. Therefore, some people regard franchising as the most convenient investment method for entrepreneurs, which is to "pick peaches on the shoulders of giants" and quickly realize their boss dreams.

As a franchisee, attracting investors will also benefit: franchisees will pay franchisees a one-time joining fee when joining; The royalty extracted from the franchise store turnover according to a certain proportion or quota; Profits from selling products (equipment) to franchisees; Distribution and training expenses of franchised stores. There is another important advantage: you can expand your brand and market without your own investment, thus suppressing your competitors.

For KFC, the initial joining fee is $37,600 and the one-time transfer fee is RMB 8 million for each store transfer. There are also royalties accounting for 6% of sales and advertising sharing fees accounting for 5% of sales every year. Most of the transferred stores are C-class cities, which have great development potential and low competitive pressure, which is beneficial for investors to get good returns and reduce management costs and operations for KFC. Through the transfer of income, we can continue to open stores, which is a risk-free high-speed expansion of Zhang Zhilu for KFC.

This brand-new franchise model is called "China characteristics" by KFC, and its essence, that is, behind the strict provisions of franchise, is the common interest relationship between KFC headquarters and franchise stores. The success of KFC depends on the success of each franchisee. Compared with some domestic chain store owners, who only charge franchise fees and have no management and training for investors, KFC's strong brand awareness is another guarantee for its success.

Among hundreds of franchised brands in China, KFC's "not starting from scratch" franchise is probably the most stable and the overall effect is also the best. This way ensures the win-win situation that KFC has been pursuing-investors make money almost without risk, and KFC expands the market share of the brand without risk.