Mcdonald's: Is China Loving It?
MCDONALD’S: IS CHINA LOVIN’ IT?
McDonald’s, the world-famous brand that defined American fast food, first appeared on US television during the 1960s. The company entered mainland China in 1990, before China’s franchise law was introduced. Regarded globally as a representation of US culture and values,
McDonald’s emergence in China soon attracted an avalanche of Chinese customers eager to try out its burgers and fries, which were vastly different from the staples offered by local
Chinese quick-service restaurants. By 2008, McDonald’s was the second-largest fast-food provider in China in terms of number of outlets and popularity, after its primary rival,
Kentucky Fried Chicken (“KFC”). Not only was food culture in China vastly different from that in the West, but Chinese food culture and lifestyles were changing as a result of surging economic growth and massive urbanisation. The competitive environment was also intensifying as local and foreign restaurants sought to capitalise on China’s increasing affluence. China’s rapidly growing middle class was also demanding higher standards from both local and foreign companies. McDonald’s local business practices in terms of food healthiness, employee welfare and other environmental issues were placed under close scrutiny. Would McDonald’s be able to keep pace with the rapid transformation of China from a closed country to an open and dynamic society?
McDonald’s Localisation Approach
In a traditional Chinese meal, dishes were served on communal plates, which were placed at the centre of a table for everyone to share. Diners would use their chopsticks to pick food out of the communal plates on a bite-by-bite basis. This was quite different from a typical
Western meal, in which individual servings were doled out at the beginning of the meal and diners would have their own sets of food to themselves.
Fast food was not a completely new idea in China. Noodle and dumpling stalls and restaurants selling
McDonald’s, the world-famous brand that defined American fast food, first appeared on US television during the 1960s. The company entered mainland China in 1990, before China’s franchise law was introduced. Regarded globally as a representation of US culture and values,
McDonald’s emergence in China soon attracted an avalanche of Chinese customers eager to try out its burgers and fries, which were vastly different from the staples offered by local
Chinese quick-service restaurants. By 2008, McDonald’s was the second-largest fast-food provider in China in terms of number of outlets and popularity, after its primary rival,
Kentucky Fried Chicken (“KFC”). Not only was food culture in China vastly different from that in the West, but Chinese food culture and lifestyles were changing as a result of surging economic growth and massive urbanisation. The competitive environment was also intensifying as local and foreign restaurants sought to capitalise on China’s increasing affluence. China’s rapidly growing middle class was also demanding higher standards from both local and foreign companies. McDonald’s local business practices in terms of food healthiness, employee welfare and other environmental issues were placed under close scrutiny. Would McDonald’s be able to keep pace with the rapid transformation of China from a closed country to an open and dynamic society?
McDonald’s Localisation Approach
In a traditional Chinese meal, dishes were served on communal plates, which were placed at the centre of a table for everyone to share. Diners would use their chopsticks to pick food out of the communal plates on a bite-by-bite basis. This was quite different from a typical
Western meal, in which individual servings were doled out at the beginning of the meal and diners would have their own sets of food to themselves.
Fast food was not a completely new idea in China. Noodle and dumpling stalls and restaurants selling
Cited: in Han, M., Xu, M., Xian, V. and Hu, J. (29 February 2008) “China, Peoples Republic of HRI Food Service Sector: 2008”, GAIN Report no http://www.fas.usda.gov/gainfiles/200802/146293804.doc (accessed 20 November 2008) 43 See Daniang Dumpling’s (（大娘水饺）) website: http://www.cnddr.com/index.htm. 47 Vedder, T. (19 August 2007) “Fast Food Domination”, China International Business, http://www.cibmagazine.com.cn/Features/Industry.asp?id=85&fast_food_domination.html (12 September 2008).