EN4505CrossculturalOrganizationalCommunication

Final Report on

KFC Restaurant Joint Research Project

ComposedBy:

FloraChan(50415348)

LawrenceWong(50394059)

CloverMok(50409458)

AmandaChan(50392982)

QueenieTsang(50213947)

TerryTong(50440714)

YvonneWong(50465616)

JenniferLau(50362271)

JamieLiu(50395591)

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 Contents

1) Introduction 3

2)OverviewofmarketoffastfoodindustryinHongKong 3

3)BackgroundofKFC 5

4) Methodology 7
4.1PrimaryResearch 7
4.2SecondaryResearch 9

5) Findings 10
5.1OnlineQuestionnaire 10
5.2FieldVisit1 10
5.3Website 13
5.4USReport 15
5.5NewspaperClippings 16
5.6Videoconference 17

6)DiscussiononTransferabilityofPractice 17
6.1Menu 17
6.2NutritionTable 20
6.3Recruitment,StafftrainingandStaffBenefits 20
6.4Deliveryservice 23
6.5TableBussing 24
6.6Multibranding 26
6.7Souvenirs 26
6.8Washtubs 26
6.9RestaurantLayout 27

7) Conclusion 28

8) Appendix 31

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1)Introduction

KFC,oneofthelargestinternationalfastfoodrestaurants,hasbuiltupitsownempire

around the world. KFC is known for its fried chicken, we can eat its famous

traditional chicken in any KFC stores around the world. However, KFC in different

countriesprovidesdifferentkindsoffoodandservice.

This semester, our group has worked with our US counterparts in the Fastfood

Restaurant Joint Research Project to study the differences between KFC in Hong

KongandUSA.Thisprojectaimsatinvestigatinghowculturaldifferenceinfluences

businesspractices.

Intermsof food,service, facilities,employmenttraining,promotional strategiesand

restaurantlayout,KFCinHongKonghassomedifferentpracticeswithKFCinUSA.

Thisreportwill analyzethedifferencesanddiscusswhatdifferentbusinesspractices

inHongKongorUSA canorcannotbetransferredtoeitherside.

2)OverviewofmarketoffastfoodindustryinHongKong

Fast food shops account for nearly 20% of Hong Kongs total out of home dining

market.LocalfastfoodchainsincludeCafdeCoral,FairwoodHoldingsandMaxim.

InternationalfastfoodchainsincludeMcDonalds,KFC,PizzaHut,Hardees,Jollibee

andYoshinoya.

Amongall fastfoodchains,McDonalds,CafdeCoralandMaximarethetopthree

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mostpopularonesinHongKong,andtheyaccountfor20%,11%and7%ofthetotal

number of fast food shops respectively. The average annual turnover of fast food

industryinHongKongwasabouttenbillionHongKongdollars.McDonalds,Cafde

CoralandMaxim accountforabout70%ofmarketshare.

From2001to2003,thenumberoffastfoodshopsincreasedby14%from520to593.

Over the past two years, there is a significant increase of 26% in fast food chains

serving western food. Currently, western chains have surpassed Chinese chains in

terms of penetration (88% vs. 80%) and are enjoying equal shares of trade in value

terms(29%vs.30%).Nevertheless,localfastfoodchainsalsohaveastrongfoothold,

62percentoffastfoodconsumerschooselocaloperatorsastheirchoiceoffastfood

restaurants.

AccordingtotheACNielsenConsumerConfidenceandOpinionSurveyconductedin

October2004,mostpeopleclaimtohavepatronizedinfastfoodshopsseventimesa

month. The average spending on fast food per head is HK$510, with an increase of

7% over the previous quarter. One third of fast food consumers are middleincome,

matureworkingmenwhoaccountfor70%ofthetotalfastfoodbusiness.Theirtotal

spending on fast food and frequency of visit are twice as much as the average fast

food diner. 11% of fast food consumers who patronize fast food shops at least five

times a week, with an average spending of HK$2,836. The surveyalso reveals that

whilebreakfastistheleastpopularoccasionforfastfoodmealsacrossAsia,USAand

Europe,itisthemostpopularinHongKong.

InHongKong,convenience(56%),price(56%)andtypeofcuisine(50%)arefound

tobethemostimportantchoicecriteria.Withfastfoodoperatorsintroducinghealthier

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optionssuchassalads,consumerstodayhavemorechoicesthanever.

3)BackgroundofKFC

KFC Corporation, based in Louisville, Kentucky, USA, is the worlds most popular

chickenrestaurantchain.KFCisadivisionofYum!Brands,Inc.Originallyfounded

by Colonel Sanders, KFC is famous for its fried chicken. To avoid the unhealthy

connotations of the word fried, the company name was changed from Kentucky

FriedChickentotheabbreviatedformKFCin1991.

In total,there are morethan ten thousands KFC aroundthe world. KFC has opened

franchises in many countries such as China, Japan, UK, Australia etc,in additionto

theinitialfranchisesinUSA.

USA International Worldwide

Company 1,439 1,185 2,624

Franchised(US) 3,743 3,841 7,584

Licensed(US) 49 55 104

JointVenture(I) 514 514

TOTAL 5,231 5,595 10,826

Soure: http://kfcatlanta.com/aboutkfc.htm

Everyday,nearlyeightmillioncustomersareservedinKFCaroundtheworld.KFC's

menueverywhereincludesOriginalRecipechicken.Customersaroundtheglobecan

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also enjoy more than 300 other productsfrom a Chunky Chicken Pot Pie in the

UnitedStatestoasalmonsandwichinJapan.

KFC was introduced to Hong Kong in 1985. Its operations were taken over by

Birdland Limited as a franchise in 1997. Nowadays, there are 55 KFC branches in

Hong Kong, 15 branches on Hong Kong Island, 22 branches in Kowloon and 18

branchesintheNewTerritories.Intotal,KFChas2,500employees.

Lastyear,theturnoverofKFC(HK)wasover7000milliondollars.KFC(HK)isthe

forth most popular fast food chains in Hong Kong, the most popular ones are

McDonalds,CafdeCoralandMaxim .

Onits20th anniversary,KFC(HK)hasputupanewimageKFCsoreal!toimpress

thecustomers.Thisnewconcepttargetsattheyoungsters,wholikerealideas.The

sloganisKFCsoreal!realfoodservedbyrealpeopleatrealplace.Foodqualities,

restaurants design and staff services are clearly emphasized. Customers can

experiencerealpleasureeverytimevisiting KFC.TheKFCRealCareFoundation

hasbeensetupinHongKongtoensureits impactoncharitableactivities.Thestaff

members are proactive to sell the charity cash coupons. It has raised over HK$1

millionduenow.

In the coming five years, KFC (HK) has plannedtoopen 8to 10 branches, with an

estimated2030%annualgrowthinturnover.Itstargetis100branchesinHongKong

in2010.

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4)Methodology

In orderto better understandthe background and cultural differences of Hong Kong

and US KFC, we used six means to gather information for this research study.

Primary research included online questionnaire, field visit and videoconference.

Secondary research included website viewing, newspaper clippings and study ofUS

report.

Among these research studies, online questionnaire, field visit, website viewing and

newspaper clippings were used toobtain useful background information about KFC

(HK). The other two methods, US report study and videoconference, were used to

find out cultural differences betweenUS and HK KFC. With all the results, we can

then discover similarities and differences in business practices between HK and US

KFC and be able to analyze the impacts of culture difference had on these business

practices.

Thefollowingsareanoverviewof whyandhowweappliedeachmethodology:

4.1PrimaryResearch

4.1.1 Onlinequestionnaire

Anonlinequestionnairewasconductedduring1520October2005tofindoutlocal

peoples view on KFC(HK) regarding its restaurant environment, food, staff service

andtheirdininghabitsandaveragespendingof KFCmeals.

Italsoenabledustofindoutthephenomenonthatwewerenotsureatthattime.For

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example,wepresumedthatitwasatraditionfortheAmericanstobusthetableafter

eatinginKFC(US)butwewerenotsureifitwasthefactforHongKongpeopletoo.

Therefore,weincludedtwoquestionsfocusingaboutthisissueinthequestionnaire.

The questionnaire consisted of two types of questions, openended and closeended

questions. Nineteen close questions were derived to obtain quantitative data which

facilitateddataanalysisandsummary.Oneopenendedquestionwassetattheendto

obtain alternativecommentsfrompeopleaboutKFC(HK).

Thesedatawereusefulforustobetterunderstandcustomersviewonandtheirneeds

of KFC, which in turn allowed us to determine and analyze factors contributing to

KFCsoverallperformance.

4.1.2 Fieldvisit

FestivalWalkKFCwasthedestinationforourfieldsite.Wechosetovisitthisoutlet

becauseithadmorecustomersduetoitslocationinalargeshoppingmall.

This field visit allowed us to obtain firsthand information such as staff interaction,

environmentandfoodquality,whichwecouldnotfindonthecompanywebsite,other

internetsitesandliterature.Thus,wecouldhaveaclearerpictureofKFCoperation.

4.1.3 Videoconference

Thevideoconferencewasheldon9November2005(Wednesday) from10:30amto

11:25 am at Room Neptune (N) in the Computer Service Centre (CSC) at City

University of Hong Kong. In the videoconference, we discussed with our US

counterparts, two students of Illinois State University, Georgene Chissell and Justin

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Veach the transferable and nontransferable business practices of KFC. We also

experiencedinterculturalcommunicationunderdifferentculturalbackgrounds.

4.2SecondaryResearch

4.2.1 Website

The official homepage of KFC(HK) provided a prominent piece of background

information about the company: its history, food menu, staff services, community

campaigns, promotional activities, news, membership privileges and a link to global

KFC official homepages including the KFC(US) one. It gave us a general idea of

KFCwhichhelpedussetupouronlinequestionnaire,prepareforourfield visitand

write out interim KFC report which was later exchanged with that one of our US

counterparts.

4.2.2 Newspaperclippings

Since we could not get adequate information about KFC employment and staff

training on its official homepage, we collected two articles from the magazines in

order to get supplementary information about this topic. Collecting newspaper

clippingsalsoletuskeeptrackwiththecompanyslatestchanges.

4.2.3 USreport

By reading the KFC report written by our US counterparts, we obtained useful

information about KFC(US). We were then able to discover similarities and

differences between KFC(US) and KFC(US) in order to determine transferable and

nontransferable practice for both KFC in preparation of discussion in the

videoconferencewiththeUScounterpart.

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5) Findings

5.1OnlineQuestionnaire

64peopleparticipatedinthequestionnaire.Themajority ofthem areagedbetween 16

and30.Mostofthemarestudentsandemployees.MajorityofthemvisitKFConcea

month. Lunch time is their most frequent visiting periods at KFC, followed by tea

timedinnerandbreakfastsessionsrespectively.TheyusuallyvisitKFCwithfriends.

TheyspendaroundHKD$20toHKD$50perpersoneachtimeon buyingKFCfood.

Regarding KFCstaffservice,80%oftheparticipantsaresatisfiedwith KFCprompt

service. 93%ofthem agrees thatthe staffare friendly and courteous. Over 80%of

them agree that tables are cleaned and trays were cleared up immediately after

customersleave.Whenaskingaboutbussingthetablebyoneselfaftereating,61%of

theintervieweeswillbewillingtodoso.

5.2FieldVisit

Resultsofthefollowingsevenaspectswereobtained.

5.2.1 Clerkmanagerinteraction

A harmonious atmosphere among staff was observed. Managers called their

coworkers by their first names. Good teamwork was observed during peak hours

mangershelpedintakingcustomersfoodordersatthecashiers.

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5.2.2 Customerprofileandbehaviour

Fromourobservation,aslightchangeaboutthetypeofcustomervisitingKFCwas

noted.

Duringbreakfastandlunchperiods,theaverageageofcustomerswasaround25to40.

Most of them were local whitecollar clerks. During tea and dinner periods,

secondary schoolstudentsand middleclasspeoplewerethe majorcustomers.There

werealsochildrenbeingwiththeirparents,aswellasafewelderly.Customerswere

mainly dining in KFC but some of them were discussing school work or business

projects.

5.2.3 Staffefficiency

Staffat cashiers took less than 1 minute to packthe foodto customers. The queues

wereshort,withnormally3peoplequeuingup.Staffcleanedthetablesimmediately

assoonasthecustomersleft.Customerscouldfind theirseatseasily.

5.2.4 Facilities

A handwashtubwasprovided intherestaurantforcustomers use.Customerscould

savetimefrom washinghandsatthewashtubsthanwashinghandsin thewashroom.

Inaddition,a largescreened LCD monitorwas installed ateachcashiertoshowthe

price of food to customers. They could then prepare money for payment when the

staffwaspackingthefood.

5.2.5 Housekeepingactivities

There were 3 cleaners in the restaurant. During nontraffic period, 1 cleaner was

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responsible for tray cleaning and another for floor and washroom cleaning. During

rushhours,anextracleanerhelpedincleaning.

Astandardcleaningpracticebythestaffwasobserved.Theysortedthecleaningcloth

into3types:1forcleaningthefoodtray,1forcleaningthetableand1forcleaning

thefloor.Beforethestaffsweptthefloor,theywereinstructedtoputaCaution:wet

floorsign boardonthefloortobecleaned.Besides,Staff needed fill inachecklist

when they cleaned the washroom to ensure they have completed those required

cleaningtasks.

Withrespecttothecleaningfrequency,1majorcleaningactivitywasrecordedduring

thenontraffictime butnoothermajorcleaningactivitieswererecordedduringrush

hours.Thestaffswepttheflooroncebeforelunchhour.Theycleanedthewashroom

everyhalfhourduringnontraffictimeandevery15minutesduringrushhours.

5.2.6 Menu

Breakfastswereservedfrom7amto11amwhileDLitemealsetswereservedafter

11am.

Food was only sold in meal sets instead of separate items. Granulated sugar,

sweetenersandbutterwereonlyprovideduponrequest.Anunlimitedrefillofmilktea

andlemonwereprovided. Newmealsetfriedeggwithonionwasofferedwhereas

nochildrenmealsetswereprovidedatalltimes.

5.2.7 Restaurantattractiveness

Thethemedecorationcoloroftherestaurantwasred.Yellowlamplightswereusedto

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providesufficientlighting.Roomtemperaturewaskeptat23degreeCelsius.Central

airconditioningsystemwereinstalledbutitstemperaturecouldnotbeadjustedeven

we requested. Large and beautifulphotos showing people enjoying KFC food were

hang on the wall, together with some soft, English songs as background music to

provideapleasantdiningenvironment.

5.3 Website

OnKFC(HK)sofficialhomepage,weobtainedinformationonthefollowingaspects:

5.3.1 Companybackground

KFC was originated from Kentucky, U.S.A. The KFC chicken restaurant had been

operating inHongKong fortwenty yearsalready,withatotalof55branches.Atits

20th anniversary, HK KFC had put up a new image KFC so real!. Its target

customers were the youngsters. Besides, KFC Real Care Foundation had been set

upinHongKongtoenchancecharitableactivities.

5.3.2 Marketingandadvertisingstrategies

KFC had been doing advertising activities such as TV advertisements, discount

coupons, souvenirs exchanging offers as well as a membership programme. A new

slogan: KFC So Real was used in all its advertisements. The new promotional

scheme KFC So Real contained four elements aiming to promote KFC(HK) as a

real place, serving real food by real people and customers enjoying the real

pleasure.

Other than TV commercials, KFC cooperated with newspapers in Hong Kong to

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launch some discount coupons. Moreover, KFC also collaborated with other

organizations such as CocaCola Hong Kong Limited. to provide unique souvenirs

exchangingofferstoitscustomers.Italsoestablishedamembershipprogrammeinits

website.Customerswhojointheprogrammecouldreceivespecialoffersregularly.

5.3.3 Recruitmentandstaffservices

Management positions of KFC were degree holders either in Hotel and Catering

Management or in Hospitality. KFC provided its staff with educational subsidy for

training. The training of KFC managers focused on five main areas: customer

satisfaction,efficiency,labourcost,semivariablecostsandemployeesatisfaction.

5.3.4 Menu

HK KFC main menu were Rise & Shine Breakfast Combo, Bucket Menu,

IndividualMenu,Snackers,ValueChoice,TeaMenuandDrinks&Dessert.

5.3.5 Service

Colonel's "RoundtheWorld" Birthday Parties could be organized in KFC(HK)

Customers can benefit from receiving Saint Honore Cake Shop Birthday Cake

discountcoupon,birthdaycardandafreegiftpack.

5.3.6 Staff

All staff was required to serve customers from the bottom of their hearts, take

initiative to understand the needs of customers, and be courteous and proactive.

KFC staff was trained to wear a friendly smile, and to be professional and

serviceoriented.

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5.3.7 Environment

KFCrestaurantsinHongKonghadspacious,tidyandsmartinteriordesigns,though

therewereindividualdesignsfordifferentstores.Alloutletshadcomfortablesofaand

roundtabletocreateafeelingofhome.

5.3.8 KFCRealCareFoundation

In2004,afundraisingcampaignforTsunamidonationwaslaunchedbyKFC(HK).

Donationboxesinallitsstoreswereputinallrestaurantchains.Staffmembersare

alsoproactiveinthesaleofcharitycashcoupons.

5.3.9 Membershiparea

Food coupons were offered to signedup members. Members could also play

interactivegames.

5.3.10 Delivery

Delivery could be offered when the order was $60 or over. The delivery time was

from11:30amto10:00pm.18districts(87areas)werecovered.

5.4USReport

5.4.1 Companybackground

KFC was owned by Yum!Brands Inc., which was the world's largest restaurant

company.Theyhadfivebrands,33,000restaurants,andoperate in 100countries.

5.4.2 Stafftraining

HiringatKFCwasatthelocalstorelevel.TrainingatKFCwasverythorough.Ithad

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necessary tools and training to their employees that allowed them to succeed. The

`STAR2000' training program was designed to increase a Team Member's skills,

performance, and hourly rate. Team Members had the opportunity to be become

Shift Supervisors through a program called `In the Lead'. The `Vision I' program

was tailored to train employees into Assistant Unit Managers. Finally, KFC has a

program that trained all of their Restaurants General Managers, called `Be the

Leader'.

5.4.3 RestaurantLayout

The typical KFC layout was, stock room, kitchen, front counter & drivethru, and

seatingarea.Ithadevenbeenfollowingastrategyofmultibrandingwhichallowedit

tocombinewithanotherrestaurantunderthesameroof.

5.4.5 Menuinformation

KFC(US) sold food separately. It contained mainly chicken food. It also had

individualitemsdessertsandkidmealsets.

5.4.6 Customerprofile

Duringtheday betweenthehoursof11:00am2:00pm,thecustomerprofilewasmore

ofanemployeeontheirlunchtime.However,thehoursbetween47pm,thecustomer

profilewasmoreofthefamily.

5.5Newspaper Clippings

HK KFC had 53 outlets and 2500 employees. HK KFC franchises recruitment and

stafftrainingwereprocessedunderBirdlandHongKongLimited.Newstaffworked

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onlowerbasiclevelfirstandwouldhavehighpromotionchances.Stafftrainingtime

wasextendedfrom5%to10%.

5.6 Videoconference

AfterdiscussingwiththeUSpartners,thetransferablebusinesspracticesfromUSto

HongKongareaddingnutritiontablesonofficialhomepage,enhancingemployment

training programmes, while from Hong Kong to KFC(US) are providing breakfast,

Dlitemeals,anddeliveryservice.

NontransferablebusinesspracticesfromUStoHongKongKFCarebussingthetable

by customers themselves, multibranding, while from Hong Kong to KFC(US) are

installinghandwashtubandrestaurantlayout.

6)DiscussiononTransferabilityofPractice

In this section, we will examine nine KFC practices to see whether they can be

transferredtotheKFC(HK)orKFC(US).Inourdiscussion,wewilloutlinedhowthe

role of culture affect the transferabilityof these practices. For each item, a detailed

rationaleisgiventosupportourconclusion.

6.1 Menu

KFCs menu includes chicken pieces made with secret recipe, snacks, desserts and

drinks.Thecompanyalsooffersindividualmealsandfamilymealsforitscustomers

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tochoosefrom.However,fooditemsandmealperiodsmayvaryinKFCrestaurants

worldwide.

In terms of menu, KFC(HK) differs form KFC(US) in four ways including the

addition of international cuisines, introduction of the DLite menu, provision of

breakfastmealsandprovisionofteameals.

InHongKong,thechainrestaurantprovidesinternationalcuisineslikeJapanesestyle

rice and Macaustyle egg tarts to its customers but KFC(US) does not have

international food items on its menu. The chief reason for KFC(HK) to adopt this

practiceistostaycompetitiveinthelocalmarket. HongKonghaslongprideditselfas

a Gourmet Paradise. Consumers are used to enjoy lots of dining choices because

cuisines fromallovertheworldcanbe found in thecityatease.Throughadding in

popular international food items, KFC(HK) keep the shop fresh and exciting for

customers intheterritory.This fusionofgourmet is aresultofcultural blendofUS

businessvaluesandlocalconsumerdemand.

Our primary research data suggests that the practice of food fusion might be

applicable for KFC(US) due to the plurality of US society. However, firsthand

information we collected from our US counterparts has suggested otherwise as the

demand for internationalcuisines is limited in small and inland cities without much

variety in the race. However, this practice is worth adopting in areas with diverse

ethicgroupslikeLosAngelesandNewYork. Thismeanstheadditionofinternational

cuisine is transferable tothe KFC(US) but the effectiveness will be subjectedtothe

varietyof ethnicpopulationsinthatparticularlocation.

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It is notable that breakfast meals are not currentlyprovided in KFC(US) considered

that the target customers of KFC(US) are mainly families, who mostly prepare

themselves meals in the morning. Nonetheless, they provide meals for families to

dropoffinKFCstoreandenjoytheirfamilytime.However,thepracticeofbreakfast

meals can still be transferable to the US as part its effort to expand their focus of

targetcustomers,egemployeesthatseekaquickabitebeforeworkinghours.

AnothersetofmenuwhichKFC(US)doesnotprovideistheteamenu.Theteameal

isapplicableinHongKongbecausethemaintargetcustomersarestudentswhohave

time for the tea meal. Also, KFC (HK) stores served as a place for youngsters for

hanging out. However, there is no time reserved for afternoon tea in the American

culture.ThisisbecausetheteahourinHongKongis2pmto6pm,whichareexactly

theworkinghours oftheAmericans.ThusAmericanworkerswill havenotimeforthe

teameals.ForUSstudents,theyusuallystay oncampuswheremealsareprovided.In

suchaclosedarea,studentsseldomgoouttohavemeals.Withalltheabovereasons,

the tea meal is not applicable to the KFC(US). Therefore, the tea menu is

nontransferablefromKFC(HK)toKFC(US).

KFC(HK) provides a Dlite menu while KFC (US) provides more choices of salad

thanthatinKFC(HK).IthasbeenacommontrendinbothAmericanandHongKong

culture that people are more aware of health. The Dlite menu which includes

relatively healthier food provides can be a creative idea to market KFC food to the

Americanpublic.InHongKong,saladsarealsomoreacceptableandpopularamong

people in these days. More choice of salads with chicken can be introduced to

KFC(HK). Therefore, the Dlite menu can be transferable from KFC(HK) to the

KFC(US) whereas more choices ofsalads canbe transferable from the US to Hong

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Kong.

6.2NutritionTable

Thenutritiontableprovidesinformationofthenutritionalvaluesofallfoodprovided

byKFC.

The online nutrition tables are only available in KFC(US) but not in KFC(HK). In

KFC(HK),nutritioninformationisonly availableonthepromotionalmaterialsforthe

Dlite meal. However, these brochures only served as a marketing purpose for the

Dlite meal.The nutritioninformationofotherfooditemsarenotavailableeither in

onlineformator inprintedformat.

We findthat HongKongpeoplearebecoming increasinglyawareofhealthafterthe

SARSepidemic.That isthereason forKFC(HK)topromotetheDlite menu inthe

territory to target healthconscious customers. However, the openness of such

healthrelated information of Hong Kong business is still not comparable to that of

US.Inviewoftheattitudeonhealthofcitizens,itistimefortheKFC(HK)toadopt

thepracticeofKFC(US)toshowthewholenutritiontablewith allkindsof KFCfood.

Inadditiontopostingtheinformationontheweb,itwouldbebetterifKFC(HK)can

publish it in a printed format so that it would be more convenient for customers

without access to internet or not yet master the use of internet to obtain the

information. This printed format of nutritional table can also be transferable to

KFC(US).

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6.3Recruitment,stafftrainingandstaffbenefits

Recruitment,stafftrainingandstaffbenefitsoflocalandKFCinUSareinvestigated

in this project. KFC(HK) franchises recruitment and staff training processes to

Birdland Hong Kong Limited. The company owns 53 restaurants in Hong Kong.

Trainingofstaff isconductedbyHumanResourcedepartmentofBirdlandwith five

staff, including teachers offering training course. Recruitment of staff is done by

posting advertisement in recruitment magazines like Jiujik and Recruit. People are

ourfocusistheslogancurrentlyusingforrecruitment.

TrainingofelementarystaffisconductedinbothbackofficeandKFCrestaurant.The

durationoftraininglastedforfewweekstomonthsandthestaffwouldbesenttothe

restaurant during the training period. Training of KFC manager is more

comprehensivethantheelementarystaff,whichfocusesonfivemainareas:customer

satisfaction,efficiency, labourcost,semivariablecostsandemployeesatisfaction. A

newprogramme,StarandAllStarisintroducedinthisyear,remunerationofstaff

willbeadjustedaccordingtotheleveltheyreach.

ThebenefitsprovidetostaffbyKFC(HK)variesamongdifferentemploymentlevel.

KFC(HK)suppermanagementenjoysstockoption of 5%shareofKFC,butMPFis

theonlybenefitforelementaryfulltimestaff.

On the other hand KFC(US) is owned by Yum!Brands Inc., which is the world's

largest restaurant company. Comparing with KFC(HK), the scale of Yum! is much

largerthanBirdlandHKLtd.Theyhave fivebrands,33,000restaurants,andoperate

outof100countries.TherecruitmentprocessofUSKFCismoresystemicthanlocal

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KFC.Itswebsiteallowsjobsearchfunction.Underthissection,aninterestedpartyis

abletoselecttheirlocation(suchasStates),division,andjobtype.

Training at KFC(US) is very thorough and comprehensive when compared with

KFC(HK). KFC in US prides itself on making available the necessary tools and

training to their employees that allow them to succeed if they wish. Various

programme are designed to achieve the purpose, including STAR2000 training

program that designed to increase a Team Member's skills and performance. In the

Leadprogrametoincreasestaffshourlyrate,andthe`VisionI'programthattailored

totrainemployeesintoAssistantUnitManagersetc.

KFC(US)offersmorebenefitstostaffthanKFC(HK).SinceitisownedbyYum!,its

employees are also entitled to these benefits. Some benefits listed on the website

include Medical Coverage and Prescription Benefits, Life and Disability Insurance,

Stock Options, Management Incentive Plan, Tuition Reimbursement etc. Yum!

University is designed to provide extensive education about the company for future

leaders of the company including KFC. Yum! University offers Marketing College,

HR College, Finance College, etc. The purpose of the University is to enhance

practicalskills,leadership,anddecisionmakingabilities.

ThedifferenceinrecruitmentandtrainingmodebetweenlocalandKFC(US)mainly

becauseofthedifferenceincompanyscalebetweenBirdlandandYum!.SinceYum!

isalargecorporation,ithasmorecapitalandmanpowertoinvestonrecruitment,staff

trainingandstaffbenefits.

However, we also need to consider the corporate culture of KFC (US) when

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explainingtheenormousbenefitsprovidedtostaffbyYum!.AccordingtoWikipedia,

United States started the human relations movement, placing emphasis on how

leadership,cohesion,andloyaltyplayedimportantrolesinorganizationalsuccess.US

corporateunderstandstheimportanceofhumanresourcesearlierthanAsiancorporate

andinvestsmoreonstafftrainingandbenefit.InAsiancorporate,humanresourceis

lessemphasizedsothattheyprovidelessbenefittostaffthanUS.

As a result, KFC(US) staff training is transferable to Hong Kong but the scale of

trainingneedtobescaledown.ItisapplicableinHKifthelocalKFCexpanditsscale.

Also,therecognitionoftheimportanceofhumanresourceinHongKongisstill not

very high at this point. Still, local KFC is less likely to provide as much as staff

benefitthanUSKFC.

6.4DeliveryService

HongKongKFCoffersdeliveryservicetotheircustomersorderingviaKFChotline

foranypurchaseover$60.KFCstaffwillsendthefoodtotheirhomeswiththeKFC

motorcycles. This service covers 18 districts (87 areas) in Hong Kong and the

delivery time is from 11:30am to 10:00pm. In US, drivethru service replaces the

deliveryservice.CustomerscandrivetoKFCrestaurantsandbuythefoodwhenthey

want.

It is likely that delivery service of KFC(HK) is launched to solve the overcrowded

conditionduring lunchanddinnerhoursoftherestaurantwhen lotsofpeoplequeue

uptopurchasethe foodandwaiting forthetables.Indeterminingthetransferability

of the delivery service, our primary data suggests that the sparse distribution of

23
populationiskeyfactorthathindersthedeliveryservice.IntheUnitedStates,people

residential areas are usuallydistant from the city centre where the shops operate. If

KFCoffersthedeliveryservice,theymaynotbeabletodeliverthefoodontimeand

keepthefoodwarmanddelicious.

However, after conferencing with the US counterparts, we find that the delivery

servicewouldbeabletobetransferredtotheKFCinUS.Firstly,intheUnitedStates,

therearelotsofrestaurantsofferingdeliveryserviceincludingthePizzaHut,Domino

Pizza and Chinese food restaurant. These stores are able to guarantee to deliver the

foodwithina limitedtime.This meanstherearedemands fordelivery service inthe

States.Moreover,thetargetaudienceoftheKFC(US)isfamily.Workingparentstend

tohavelesstimetopreparefoodfortheirchildren.KFCcantakethisopportunityto

extendtheirreachofconsumers.Webelievethisactcanhaveapositiveeffectonthe

revenue of KFC(US). Based on the evidence, delivery service can be transferred to

KFC(US).

6.5 TableBussing

Tablebussingmeanstoclearthetableafterdining.

All Hong Kongs KFC restaurants have hired staff to bus the table for customers.

KFC(HK)usecleaningclothstobusthetable.KFC(HK)hasastandardprocedurefor

their staff to clear up thetables. The restaurant divides the cleaning cloth intothree

types. The staff responsible for cleaning pick up the cleaning cloth from three

differenttrays:onetrayisforcleaningthefoodtray,onetrayisforcleaningthetable

andonetrayisforcleaningthefloor.Thestaffwillsolelyusetherightclothtobusthe

24
tableandtheywilluseanotherclothtowipethetray.Thispracticepreventsstafffrom

usingthefloorclothtobusthetableorwipingthefoodtray.Fromourobservationin

KFC(HK),allstaffresponsibleforbussingthetablearefemaleaged4050,andthey

are dressed in KFC uniform and KFC caps. In our field research, a restaurant staff

came to the table and cleared it up after the customer had just walked away one

minuteago.TheefficiencyoftablebussingamongtheKFC(HK)staffisveryhigh.

Yet, the KFC in the US does not hire anyone to clear up the table. The staff only

works behind the counterto make sure food is properlyprepared and to restockthe

food.OnlywhenduringnonpeakhourstheKFC(US)restaurantswillsendsomeone

out the wipe the table. Yet, there is no particular staff person responsible for table

bussing. Customers dinein are expected to bus their own tables upon leaving the

restaurant.

This difference in practice can be explained in terms of cultural norm. Hong Kong

customers are usedto leaving everything behind forthe cleaners totake caredueto

thecommonbeliefthatwehavepaidtobeserved.Customersshouldnotdothejobof

staff. Moreover, Hong Kong is a fastpace city. People are not willing to spend the

time on bussing the tables. The same phenomenon applies in McDonalds and other

local restaurants,bethey smallorbiginsize.

Onthecontrary,peopleintheUSbusthetablethemselvesaftereatingatKFC.Thisis

becausetheUSpeoplehavedifferentasharedcustom.Itisaresponsibilitytobusthe

table after dining. The civic education in the US emphasizes on being considerate

and as a citizen, you should take up your own responsibility. Therefore, the

customers in KFC(US) will not bother to bus the table themselves. Since the

25
customers intheUnitedStatesareaccustomedtobussingthetablethemselvesupon

finishing the meal. There may be difficulties when transferring the practice of

KFC(HK), that is hiring a staff to bus the table, to KFC(US). Also, having staff

members to be responsible for bussing table will take away the familyoriented

atmosphereofKFC(US)restaurant.

6.6 Multibranding

KFCs parent company, Yum!Brands Inc. is also the owner of KFC, A&W, KFC,

Long John Silver, and Pizza Hut. Recently, KFC has adopted a strategy of

multibranding. This philosophy allows Yum!Brands to combine KFC with another

restaurantownedbyYum:A&W,LongJohnSilver's,PizzaHut,orTacoBellunder

the same roof. It is a good marketing strategy because it gives more variety and

conveniencetocustomers.

However,inthecontextofHongKong,KFCisoperatedbyBirdlandHongKongLtd

underthefranchiseofYum!Brand.BirdlandhadthefranchisetorunKFConlybutno

other brands. Putting different brands under the same roof would raise issue on

logistics and staffing. The cost would be prohibitive. Thus, multibranding strategy

cannotbetransferredtoKFC(HK).

6.7Souvenirs

KFC(HK) works with other companies such as Pepsi in offering small toys as

souvenir to kids. In the US, the souvenir toy that goes with kids meal is actually

targetedatfamilycustomersratherthanonkids.

26
The idea of giving promotional items for kids cannot be transferred to US because

KFC(US)strategyistosatisfyconsumersneedswithquality,speedandconvenience

ratherthanappealingtoemotionalneedofkids.

6.8 Washtubs

InHongKong,washtubswithliquidsoapcanbefoundineveryKFCrestaurant.The

washtubisusuallyplacednearthewallandliquidsoapisprovidedbyKFC(HK).In

theUS,however,washtubsarenotinstalledintheKFCrestaurants.

This facility allows KFC customers to wash their hands before and after finishing

their meals. This is especially convenient consider that most customers are eating

deep friedchicken.Insteadofgoingtotherestroomthat may be locatedoutsidethe

KFCpremises,forinstanceintheshoppingmall,customerscanwashtheirhandswith

the washtub inside the restaurant. This can save customers time from going to the

restroom which may be far away from the restaurant. It also keeps the interior of

KFC(HK) restaurants clean. Also, washtub is more environmentallyfriendly than

givingcustomerswettissueswhichhelpsenhanceKFC(HK)spublicimage.

However,thispracticecannotbetransferredtoKFC(US).Theis becausethecostof

setting up the washtub is high. Since the size of a KFC(US) restaurant tends to be

bigger than KFC(HK), three to five washtubs are required for each KFC(US)

restaurant. Therefore, KFC(US) has kept the traditions of giving the customers the

littletoilette.Inaddition,everyKFC(US)restauranthasitsownrestroom,customers

cangotheretowashtheirhandsveryconveniently.Itwouldnotbenecessaryforthe

27
KFC(US)restaurants toinstallwashtubsineveryrestaurant.

6.9RestaurantLayout

The standardized layout in KFC(HK) includes sofa area, kids corner and magazine

rack. Because of the limited living space in Hong Kong, fast food shops especially

thosewithacosyenvironmentturnouttobeoneofthemostfavorablehangoutsfor

youngpeople.Thisisconfirmedinoursurveythatmajorityofthecustomersareaged

between16to30.

However,transferring the HongKongstyle layoutto US would be unnecessarydue

toamajordifferenceinlifestyleorconsumptionpattern.KFC(US)isprimarilyafood

dispensersothelayoutisdesignedforspeed.Thefurnitureisstationary.UnlikeHong

Kong, fastfoodrestaurantis notan idealplace forhangingoutintheUS.Also,US

consumers seldom regards KFC to be an ideal place for gathering. Moreover, it is

doubtfulthatwhetherthealteredlayoutwillbringinmoresalesforKFC(US).

7)Conclusion

Culture,asdefinedbymanyscholars,isasharedsystemofsymbols,beliefs,attitudes,

values, expectations, and norms of behavior. It is something that is shared by all or

mostofthemembersofsomesocialgroupssomethingwhichthegroupstrytopass

ontotheyoungergenerationsandshapesthebehavior,orstructuresonesperception

oftheworld.

28
WecanseetheimpactofcultureonthebusinessofKFC inthetworegionsthrough

ourfindingsofthistheproject.

As per the culture in US, they are relatively more selfdisciplined and have the

concept of being considerate. With the image of homestyle, customers visiting

KFC are willing to do the table bussing themselves as they have to clean up their

dishesaftereachmealathome.However,inthepointofviewofHongKongpeople,

customerspaynotonlyforgoodsbutalsoforservice.Itisunreasonableforcustomers

to bus the table after dining. Therefore, KFC(HK) and KFC(US) have adopted a

totally different style of management in term of housekeeping: there are no special

employeeshiredfortablebussinginUSlikeKFC(HK)does.

From the layout of the restaurant, we can also notice the impact of culture to the

business strategy of KFC. In US, KFC is treated as a fast food company. Even

KFC(US)emphasizeshomefeeling,thelayoutoftherestaurantstendstobeneatand

furniture is stationary so that the paths around the restaurant are clear without

obstacles.Customersthencanmovearoundquickly andspeedupthediningtime.But

in Hong Kong, as mentioned above, customers have the perception of paying for

service,hencetoprovideabetterenvironmenttothem,KFC(HK)hasinstalledsofa

area so that its customers can sit more comfortably while enjoying their meals. In

addition to sofa, KFC(HK) also open up kids corner so that children can have their

ownpieceoflandandenjoytheirexperienceinKFCliketheirparents.

DuetotheculturaldifferencesbetweenHongKongandUS,itisreasonablethatsome

practicesarenottransferabletooneanother.Withthetrendofglobalization,perhaps

therewill beonedayweallshareauniversalculturewithpeoplearoundtheworld.

29
Yet,beforethatagearrives,culturalsensitivityremainsanintegralpartofsuccessful

interculturalcommunicationandinternationalbusiness.

# # #

30
Appendix
TheappendixincludesthemenuofHongKongKFC,thequestionnaireandtheresult
conducted by our group, the news clippings, the minutes of the video conferencing
andthebibliography.

1. Menu
ThebasicmenuofKFC(HK)consistsoffriedchicken(eitheroriginalrecipeorhot
spicy),BBQhoneywings,ZingerBurger,ChickenALaKingriceandmushroomrice.
KFC(HK)alsoprovidessoftdrinkswiththreesizesandTropicanaOrangeJuiceand
AppleJuice.Inadditiontothemaindishes,KFC(HK)alsooffersseveralsetsof
menusindifferenttimeslotsandfordifferenttargets.

1.1 Rise&Shine breakfastcombo

Thebreakfastmenuisavailablebefore11:00a.m.Thepricesof thismenurangefrom
HK$10toHK$21.5withafreedrink.Tearefillingisfreeduringbreakfasthours.To
HongKongpeoplesappetite,macaroniisavailableinselectedmeals.

1.2 Bucketmenu
Thisisavailablefrom11:00a.m.Ninepiecesofchickeninabucketwithtwobottles
of600mLsoftdrinksareprovidedinasetwitheitheroneofthetwogroupsofside
orders.Thebucketmenuisspecializedforgroupsoffriends.ABarrelMealsetis
availableonweekendsinwhichninepiecesofchickenandthetwosoftdrinksare
providedwithbothgroupsofsideorders.

1.3 Individual menu

Thereareeightsetsofindividualmenuavailableafter11:00aminKFC(HK).Sixof
thesetsarewithtwopiecesofchickenandmediumsizesoftdrinks.Customerscan
chooseamongthesixsnackstoformtheirpreferablesets.Theothertwosetsare
ChickenALaKingricewithadrumstickaswellasZingerBurgerwithCrissCut
Fries.Bothsetsareservedwithasoftdrink.

1.4 Snackers
Insteadofbuyingawholeset,singlesnackslikecoleslaw,honeybiscuitsandmashed

31
potato&gravyareavailableatKFC(HK).Besides,Japanesestylesnacksarerecently
addedto themenu,suchasthebabywings,seaweedrollsandyakitori.Allsnacksare
availableafter11:00a.m.

1.5 Valuechoice
ValueChoiceconsistsoftwoHK$21riceset.TheyaretheTeriyakiChickenFilletSet
andtheZingerFilletwithMushroomSauceSet.

1.6 Teamenu
Theteamenuisavailablefrom2:30to5:30p.m.,fromMondaytoFriday.Theprices
rangefromHK$11toHK$16,anditisservedwithcombosofsnacks,dessertsand
drinks.

1.7 Drinksanddessert
Apartfromsoftdrinks,KFC(HK)alsoservesteaandcoffeeaswellassomespecials
suchasAloeApplePunchandMangoPunchwithNatedeCoco.Fordesserts,
KFC(HK)providedeggtartswhicharetraditionalHongKongsnacks.

32
2. Questionnaire

QuestionnaireaboutKFC

I.Customer profileandbehaviour
1.Age :
a.below 16
b.1630
c.3145
d.4660
e.above 60

2.Sex :Male /Female

3.Employmentstatus
a.Student
b.Working
c.Housewife
d.Retired
e.Unemployed
f.Others

4.Whatis/areyourreasonsforeatinginKFC?(Youcanchoosemorethanoneoption)
?()
Cheapprice
Convenience
Foodquality
Cleanrestaurants
Speedofdelivery
Goodservice
Other :_______

5.HowoftendoyoueatinKFC?
?
Onceafewmonths
Onceamonth
Onceaweek

33
Atleastonceaweek
Other :_______

6.WhichperiodoftimedoyouusuallyeatinKFC?
?
Breakfasttime
Lunchtime
Tea time
Dinnertime

7.Whodoyouusuallygowith? ?
Family
Friends
Other :

8.HowmuchdoyouusuallyspendinKFC(perperson)?
?()
a.LessthanHK$20
b.HK$20HK$50
c.OverHK$50

On a scale 14, 1 being strongly disagreed and4 being strongly agree. How do
youratethefollowing?
(1 4 )

II.Foodquality
9.Thefoodisservedhotandfresh 1 2 3 4
10.Themenuhasvarieditems 1 2 3
4
11 Thequalityoffoodisgood 1 2 3 4

III.Restaurantattractiveness
12. Therestaurantsettingiscomfortable . 1 2 3 4
13.Seatsandtablesareclean . 1 2 3 4
14. Thelightingisgood . 1 2 3 4
15. Theairconditionissetatapropertemperature . 1 2 3 4

IV.Service

34
16.Iwasservedpromptly 1 2 3 4
17.Staffarefriendlyandcourteous
1 2 3 4
18.Thetablewascleareduppromptlywhenacustomerleaves

1 2 3 4
19.Iamwillingtoclearupthetraymyselfaftereating.

1 2 3 4

V.Othersuggestion .
20.DoyouhaveanysuggestionforimprovementinKFC?
?
______________________________________________

35
3. QuestionnaireResult
Wehavedone76questionnaires.Thenumberingreenblanketistheresultofdifferent
questions.

Customerprofileandbehaviour
1.Age :
(8) a.below 16
(57) b.1630
(6) c.3145
(5) d.4660
(0) e.above 60

2.Sex :
(47)Male
(24)Female

3.Employmentstatus
(37)a.Student
(29)b.Working
(0) c.Housewife
(6) d.Retired
(1) e.Unemployed
(0) f.Others

4.Whatis/areyourreasonsforeatinginKFC?(Youcanchoosemorethanoneoption)
?()
(41)Cheapprice
(28)Convenience
(16)Foodquality
(16)Cleanrestaurants
(11)Speedofdelivery
(10)Goodservice
(6) Other :_______

36
5.HowoftendoyoueatinKFC? ?
(23)Onceafewmonths
(35)Onceamonth
(10)Onceaweek
(2) Atleastonceaweek
(6) Other :_______

6.WhichperiodoftimedoyouusuallyeatinKFC?
?
(5) Breakfasttime
(36)Lunchtime
(20)Teatime
(15)Dinnertime

7.Whodoyouusuallygowith? ?
(15)Family
(56)Friends
(5) Other :

8.HowmuchdoyouusuallyspendinKFC(perperson)?
?()
(11)a.LessthanHK$20
(56)b.HK$20HK$50
(9) c.OverHK$50

Onascale14,1beingstronglydisagreedand4beingstronglyagree.Howdoyou
ratethefollowing?
(1 4 )

II.Foodquality
9.Thefoodisservedhotandfresh 1(1) 2(58) 3(16) 4(1)
10.Themenuhasvarieditems 1(1) 2(31) 3(41) 4(3)
11 Thequalityoffoodisgood 1(2) 2(45) 3(28) 4(1)

37
III.Restaurantattractiveness
12. Therestaurantsettingiscomfortable . 1(6) 2(55) 3(14)4(1)
13.Seatsandtablesareclean . 1(5) 2(55) 3(16)4(0)
14. Thelightingisgood . 1(12)2(64) 3(0) 4(0)
15. Theairconditionissetatapropertemperature 1(4) 2(63) 3(8) 4(1)

IV.Service
16.Iwasservedpromptly
1(4) 2(56) 3(16) 4(0)
17.Staffarefriendlyandcourteous
1(4) 2(64) 3(7) 4(1)
18.Thetablewascleareduppromptlywhenacustomerleaves

1(7) 2(51) 3(18) 4(0)

19.Iamwillingtoclearupthetraymyselfaftereating.

1(6) 2(42) 3(19) 4(9)

38
4. NewsClipping

4.1 ArticlefromEconomicDigeston15October2005.

20051015

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

20
RealFoodRealPlaceReal
People SoRealConcept

53 2,500 70
20 2,400

Birdland HongKongLimited

2.99%
0.9

Star AllStar

2,040 224 133

39
 Star 200

300 All Star 100 AllStar

5% 10%

2002

CHAMPS
Cleanness Hospitality
Accuracy
Maintenance
ProductSpeed

40
4.2 ArticlefromEastMagazineon7September2005.

20050907 A33

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

ArthurHo

PizzaHut

PizzaHut
Yum!Brands,Inc
Yum!

PizzaHut

Yum!

41

ArthurHo

42


Yum!

43


Wendy'sBurgerKing

:200509078420041

44
5. MinutesoftheVideoconference
Minutes(Group5)
Date:9/11/2005
Time:10:30am(HKT)
Place:RoomNeptune(N),CSC,CityUniversityofHongKong

Attendants
HongKongParticipants:CloverMok,FloraChan,QueenieTsang,YvonneWong
Hong Kong Observers: Amanda Chan, Jamie Liu, Jennifer Lau, Lawrence Wong,
TerryTong
USParticipants:GeorgeneChissell,JustinVeach

Issuesagreed
DLitemenu,breakfastmenuweretransferabletoUSKFC,butnottheteamenu.
TheKidsMenuofUSKFCwastransferabletoHongKong.
HongKongKFCcouldoffermorechoiceofsaladliketheUSKFC.
NutritiontablewastransferablefromUStoHKinprintedformat.
StafftraininginUSwastransferabletoHongKongwithsmallerscale.
Tablebussingwasnot transferabletotheUS
Washtub wasnot transferabletotheUS
Deliveryservice
GivingsouveniruponpurchasecouldnotbetransferredtoUS.
MultibrandingwouldnotworkinHKKFC
HongKongKFCrestaurantlayoutcouldnotbetryoutinUS

1.Menu
FlorareportedthedifferenceinthemenusofKFCinUSandthatinHongKong.KFC
US offered Kids Meal, Family Meal and Individual Meal while Hong Kong KFC
havemorevarietysuchasbreakfast,teamealsandDlitemeals,butnoKidsMeals.

FloraraisedthatwhetherthebreakfastmealsandtheteamealscouldbeofferedinUS
KFC.Justinclaimedthatitwouldbedifficulttohavetheteamealduringtheworking
hours,buthethoughtthebreakfastcouldbeworkedoutinUSKFC.Georgeneagreed
thatbecausetherewasnoteatimeinUS.

Flora asked if the tea meal would be transferable to US KFC if it was offered to
students.Georgenementionedthatitwouldnotbeapplicable,asforschoolkids,they
45
wouldstayatschoolwheretherewasaclosedenvironment.Mealswereprovidedin
campus.Moreover,GeorgenesaidthatUSKFCmainlyservedemployeesratherthan
students.

FloramovedontotheDlitemenu.GeorgeneagreedthatDLitemenucanbeoffered
inUSKFCasthefoodprovidedwasnothealthy.

When discussing the international cuisine, Georgene suggested that international

menu should apply in area with higher international population. Justin agreed with
FlorathatitcouldbeworkingoutinlargecitieslikeLAandNewYork.

2.NutritionTableandEmploymenttrainingcourses
CloverpointedoutthatHKKFCdidnothavenutritiontableasinUS.Thetablecould
be in printed format instead of electronic format on the internet .She thought this
practicecouldbetransferredtoHK.Georgeneagreed.

Clover mentioned KFC in US had the star 2000training programme but HK didnt.
TraininginHKwasconductedbyHRMdepartmentwithonlyfivestaff.Probablythe
trainingin USKFCcouldbetransferredtoHKwithsmallerscale.

Justin pointed outthat in US there was a hierarchy of staff like restaurant manager,
team manger and assistance staff .He wondered if HK adopted the same practice.
Clover replied that HK have just introduced the star class for employee to get
promotedtothemanagementposition

GeorgeneaskedClovertodescribethestaffbenefitofHKKFC.Clovermentionedit
varied among different employees. The limited benefit provided to elementary staff
resulted in high turn over rate. She suggested staff benefit should include medial
coveragetomaintainmoraleandquality.BothJustinandGeorgeneagreed.

3.Restaurantfacilities
YvonneandCloverpointedoutthetablebussing issue.InUS,peoplebussedupthe
tablethemselves,butnotinHongKong.GeorgenerepliedthattheKFCintheUSdo
nothirestafftobustables,onlywhentimeslowsdown,theUSKFCrestaurantswill
sendsomeoneoutthewipethetableoff.

46
YvonneaskedJustinandGeorgenewhetheritcouldbeadoptedintheUS.Georgene
also pointed out that it was the family cleaned up the table afterwards. Hiring
someonetobuzzthetablewouldtakeawaythefamily'feel'oftheKFCrestaurants.

Yvonne agreed with this and mentioned that in Hong Kong, it was mainly the
individualorfriendscomingtotheKFCrestaurant.Itwashardtochangethehabitsof
bothsides.

YvonnereportedthatHKKFChasinstalledwashingtubintheirrestaurantsrecently.
Georgene thought it works because it would lead to a healthier environment, but
wouldcosttoomuchtoinstallwashtubintheUS.Also,peopleintheUSwouldjust
gotothebathroomtowashtheirhandsanditwouldnotbeurgencyfortherestaurant
tomakethechange.Justin alsodoubtedwhetherthepublicwouldusethewashtub.

4.DeliveryService
Queenie reported that in the US, drivethru service is very common and in Hong
Kong, KFC offers delivery service. Customers can orderthe food by phone and the
food costs more then $60, the food will be delivered to their home directly. Justin
repliedthatitcanworkintheUS.

Georgene also thought it works because there are many different companies offered
delivery service in U.S, for example, Pizza and Chinese food. But she reminded us
thatitmay havemanyproblemstoworkitout.

5.PromotionalStrategies,MultibrandingandRestaurantLayout
Queeniereportedthatfreecouponinnewspapersandmagazinesandspecialsouvenirs
begivenuponpurchasewereverypopularinHongKong.Georgenerepliedthatthere
were coupons in Sunday newspaper or circulations that came from ones mail.
Howeverthecoupondidnottakesomemoneyoffofapurchase,itwasmorelikethe
formofbuyoneandgetonefree.

Justin further explained the kids meal that KFC worked with other company like
Pepsi, the souvenir was targeted to family rather than kids. Georgene said other
competitorslikeMcDonald havegiven itbecausethey havekidsplayground.There
were no playground forthe kids in KFC so promotional items forthe kid might not
work.

Queenie raised the issue about multibranding in US. Georgene said it was a very

47
goodmarketingstrategybecauseitgavemorevarietyandconveniencetocustomers.
Clover explained that Hong Kong KFC was operated by Birdland Ltd. under the
franchise of Yum!Brand. Birdland had the franchise to run KFC only and no other
brand.Queeniefurtheraddedthatputtingdifferentbrandstogetherwouldraiseissues
on staffing and logistics issues and concluded that the concept of multibranding
couldnotbetransferred.

Queenie asked whether the layout in HK KFC such as sofa area, kids corner and
magazine rack could be replicated in US. Justin replied that the layout in US was
designedprimarily forspeed.Georgeneagreedandsaidthe furniturewasstationary,
and itwould indeedagreatideatoputthatkind ofstuffs inUS.Queenieconcluded
thatmaybetheideacouldnotbetransferredinsomelargecitiesinUS.

6.IssuesraisedbytheUScounterpart
Justinmentionedtheanimals welfareprotestinUSKFCandwonderedwhetherthere
was similar thing happened in Hong Kong and China. Clover responded that Hong
Kong people were less concerned aboutthe animalwelfare than inUS, butrecently
therehasbeenalocalpetition againstHKKFC.

48
6. Bibliography

Asians the World's Greatest Fast Food Fans. Two thirds of Hong Kongers
frequent at least once a week (2004). Retrieved September 24, 2005, from
http://www.acnielsen.com.hk/news.asp?newsID=132.

Fast Food & Organised Catering in Hong Kong: A Market Analysis (2001).
Retrieved September 24, 2005, from
http://www.mindbranch.com/products/R231143.html

KFC Hong Kong Website (2005). Retrieved September 24, 2005, from
http://www.kfchk.com.

KFCUSAWebsite(2005).RetrievedOctober28,2005,from
http://www.kfc.com/

The Worlds First Individual Electronic Consumer Panel Goes Live in Hong
Kong (2004). Retrieved September 24, 2005, from
http://www2.acnielsen.com/news/20040805_ap.shtml.

2005 9 7 A33

2005 10
15

49