CHINA TOPIX

03/29/2024 10:02:08 am

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China KFC Concept Stores: A Fusion of the Old and New

China KFC

(Photo : China Photos/Getty Images) Eight-year-old Chinese girl Zhang Huimin (R), rides an electrical dinosaur in a KFC restaurant after a day's training, on her way running from South China's Hainan Province to Beijing in North China, on Aug. 23, 2007 in Baoding of Hebei Province, China.

China's KFC concept store is catching the attention of Chinese food lovers with its fusion of the old and new.

At first glance, the restaurant may resemble a classical Chinese Garden: a dining area surrounded by green bamboo and flowers bursting with colors, and a moon-shaped doorway which features the gray and jade shade of the China's Great Wall.

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On the other hand, customers place their orders using a virtual personal assistant called Duer, while the store's regulars dine in Music Charging Tables where they can charge their devices as they listen to a playlist customized by BaiduMP3.

The development of KFC's concept store in China, which has been designed "digitally," is the result of a collaborative effort between the US-based Yum Brands Inc. and Baidu, the Chinese web services giant.

This "Original+" KFC concept outlet is located within Shanghai's National Exhibition and Convention Center and provides customers a digitalized experience, with services ranging from ordering to paying, including various types of entertainment.

Joey Wat, CEO of KFC China, explains that "Original+" combines the company's "Original Recipe" chicken with innovative technologies.

The launch of the concept store is in line with KFC's "repositioning" strategy, which will enable the company to keep up with the latest social and consumer demands by utilizing the internet and mobile services to attract the nation's younger generation.

"The KFC concept store is a very interesting experiment," notes Jason Yu, general manager of the consumer research firm Kantar Worldpanel China.

"It is expected to generate increased customer experience, and raise efficiency for restaurants," Yu added. "And in turn it, is expected to attract more young and middle class customers."

In its report last week, Yum revealed that the sales of its China restaurants which have been open for at least a year rose by six percent in the first quarter of 2016.

The company's KFC stores, which comprise the majority of its 7,205 restaurants in the division, posted a 12 percent rise in same-store sales.

In light of its success, KFC notes that the biggest challenge confronting the fast-food industry in China is the Chinese consumer's desire for healthier food choices. 


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