France is
mainly known for its gastronomy. The best “Chefs” go abroad in the best restaurants
from New York to Tokyo. In Paris, you have a huge concentration of 3 Michelin’s
stars restaurants where you can eat the
best meals ever prepared.
Otherwise,
you have more and more McDonalds! For few years now, you also find more and
more KFC. Why France could be a paradise
for American Fast Foods? A Paradox? Some factors allow us to understand :
§ - Fast-Food
sales have increased of 4% in 2012 and 73% since 2005.
- A place where you can
eat for less than 10 euros is enjoyable in a country in crisis.
- Only
4 fast-foods companies: McDonald, KFC, Quick _ a Belgium firm and Subway in the
big cities.
The main
reason why Burger King or Quick are failing in developing themselves on the
market is that McDonald was the first to enter the market (more than 20 years
ago) and is now very strong and well implanted. Basically, they sell sandwiches
made with beef.
One company
tried to enter this market successfully. It’s KFC. They just opened their 150°
restaurant and want to open 150 more for 2017. Their strategy is quite simple:
- Using
the decrease of Quick to buy strategic emplacement_ quite rare and expansive in
the biggest cities
- Not
doing a low-cost strategy : France is where they do their best margins
- Selling
something different : chicken and not beef
- Communicate
on the “home-made” and fresh chicken
They wanted
to be completely different from their main competitor. Results: 3 millions of revenues
for Quick and 3,4 million for McDo.
Which
company will be the next KFC in France?