mardi 23 avril 2013

How KFC is now N°2 in the country of the Michelin’s Guide?


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?

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