Mcdonald 's And Kentucky Fried Chicken

2335 Words10 Pages
When any company decides to franchise its business, and open up across the United States or the world, they first must consider many things. Will the company be successful in the area they are trying to open? How will they be able to ensure consistency amongst the different locations, to make sure customers experience the same thing no matter what location they visit? What threats and opportunities are there to expanding the business? For companies such as McDonald’s and Kentucky Fried Chicken (KFC), the decision to expand has paid off not only in the United States but also in its expansion throughout the world. Although both companies have become successful and remained, successful for many years it was not always an easy road to success.…show more content…
One industry in particular that had essentially avoided China in the years prior to the resurgence of the country’s economy was the Quick Service Industry. China had never truly experienced western restaurants like KFC or McDonalds, and the late 1980’s was the perfect time for the two companies to begin their journey into the country. Not only was China a good fit based upon their food preference, being that they are large consumers of meat, but there was also a heightened interest into what the United States could bring to the country. For so many years, China had been closed off to the rest of the world, but overtime the country began to realize that it would be beneficial to learn about other countries, and allow them entry into the country. However, with all things good come some hurdles that make companies looking to expand have to work harder to achieve their goal. For all of the good that came with selecting China as a foreign market to enter, there was some major obstacles, one of which being the wealth of the citizens. Although China has a very large population, there was a major breakdown of wealth within the country, leaving a vast majority of the people in a predicament of not having money to spend on expensive food. Nevertheless, many people would argue that one benefit to the Quick Service Restaurants like KFC and McDonalds is the affordability of the food. The affordability of
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