KFC and McDonald’s in Shanghai
Answer to Question # 1
From the case study, it can be observed that both KFC and McDonald’s serve to dominate the fast food business in Shanghai. Both fast food chains serve all their customers effectively, given the different categories and factors that determine the success of restaurants and fast food chains in Shanghai. However, based on the findings of the case study, it can be perceived that KFC is running a more successful business in Shanghai, compared to the business run by McDonald’s. This was given proof in the case study, based on the many and varied responses of customers to surveys, which involve their evaluation of both fast food restaurants, based on a number of factors, namely, food, service, environment, price, convenience, brand, and promotion.
In terms of food, although both fast food restaurants almost have the same varieties, certain differences can still be recognized. Both KFC and McDonald’s offer chicken and hamburger meals, including snacks, desserts, and drinks. However, only KFC offers a wide range of healthy side dishes, such as mashed potato, carrot muffin, and lotus fresh vegetable side dishes. In this sense, KFC aims to uphold healthy eating and nutrition of their customers. In addition, it has been emphasized in the case study that KFC appeared to have the upper hand over McDonald’s in terms of introducing new products in the market. Most of the new products of KFC, such as its breakfast items, suit the tastes of the Chinese. Such products are based on both Chinese and Western cuisines, including Mexican chicken rolls, spicy double-layer hamburgers, and New Orleans wings. KFC has also been introducing new products in the market in a regular rate, such as every two to three months, which is in contrast to the new production introduction rate of McDonald’s, which is often infrequent, and only mere variations in the sizes of hamburgers or the available components in set meals.
In terms of environment and service, although both fast food restaurants appeal to their market due to their convenient lighting, cleanliness, music, and decorations, still, KFC serves to have the upperhand over McDonald’s. Based on the survey made by the study, more customers are “Very Satisfied” with the services and environment of KFC over McDonald’s. This is because the waiting time in McDonald’s is too long, compared to KFC. In addition, it can also be perceived that KFC has more advantage than McDonald’s, as the employees in KFC have less time to interact with customers than its counterpart, as the volume of its business is larger.
The prices of food offered by both restaurants equally serve each other. However, the food offered by KFC is slightly higher, being able to offer some meals that are not offered by McDonald’s, such as the Family Bucket, Garden Chicken Burger Meal, and Hot & Spicy Wing Meal. Nevertheless, the volume of customers in all given times of day, in both weekdays and weekends is still higher in KFC than in McDonald’s. It has been indicated in the case study that the daily customer volume on weekdays for KFC is 3,549 and for McDonald’s is 2,191. On the other hand, the daily customer volume on weekends for KFC is 4,266 and 3,749 for McDonald’s. Given such figures, it can be perceived that more customers prefer KFC to McDonald’s, thus, indicative of the fact that KFC runs a more successful business than its counterpart does.
Moreover, the findings of the study indicate that more low income and high income customers prefer KFC to McDonald’s, while average income customers prefer McDonald’s more than KFC. In this sense, it can be observed that KFC has a wider range of customers compared to McDonald’s, thus, indicating that more customers patronizes KFC. Furthermore, for the finale, the proof that KFC is running a more successful business than McDonald’s is indicated in the survey ranking the performance of the Western Fast-Food Brands by Preference, and KFC ranked the first among the many brands listed. McDonald’s only ranked second. KFC Shanghai also ranked first in the Top Ten Catering Companies in China in 2002. In this regard, it can be distinguished that KFC outperforms McDonald’s in Shanghai.
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