Thursday, November 15, 2012

Kun Fu fast food: a Chinese fast food concept

Today, I want to tell you about a Chinese fast food concept since I already explained the success and strategies of KFC and Mac Donald.
Chinese fast food develop quickly and this development reveals changes in China: increasing prices, change in customers expectations.

Several Chinese fast food chains established themselves in China.

What are the reason of this success?

  • Increasing prices of Chinese street food restaurant. 
Street restaurants must pay increasing rents in cities. Street restaurants have to pay higher rents. These restaurants must buy their ingredients at more expensive prices (while Chinese fast food chains can buy in bulk and benefit from lower ingredients prices). They should therefore increase their prices and reach prices closer to Chinese fast food chains prices.

Prices of "non expensive restaurants" in China?
For Mac Donald and KFC they have a lunch meal offer around 15 rmb. But you usually pay more For a Chinese fast around 20, 25 rmb.
For a street restaurant you pay about 10rmb in Changsha.

  • Health and cleanliness
 For many Chinese customers, a fast food is always clean. Some fast food have developed a "healthy, clean" image. And there is an increasing concern for healthy and clean food.
In order to strengthen this image, Chinese fast food:
Developed strong brand communication
Invested a lot of money in design and concept

Success of Kun Fu fast food
Kun Fu fast food originates from south China. Many years ago I saw this fast food chain in Shenzhen.
Now they opened in Changsha: at the train station. This shows the increase of prices in Changsha: rents and ingredients prices. Train station is also high passage way. Customers look for known brands so they will have no bad surprise. Image is therefore very important in high passage places like train station and we see: Mac Donald, KFC, bakeries, Chinese fast food...

  • A decoration inspired from KFC: mirrors, dominance of red, modern materials

  • Chinese menus: soup, dish, vegetable

Ta dam!
The soup is a Chinese soup: very liquid and low cost, nothing to prepare, same as salad.
Dish is generous with plenty of rice. Meat is limited.

Relatively high price as compared to Mac Donald and KFC 15 rmb lunch menu!
Add a drink to your menu and you will have to pay 30 rmb!

Dishes are prepared forehand and kept hot

I wonder if the Group must give money to Bruce Lee relatives?
But of course this is China and no one says that the logo is Bruce Lee!

When will these fast food come to France?

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