Chapter 1

PROBLEM ANS ITS SETTING

Background of the Study
In this age of internationalization, people are able to share any kinds of
food from different parts of the world, thanks to the global business of food
and beverage companies. As the leading driver of global growth in consumer
food service, the fast food industry is reaching new consumers continually
through improved menus, dining experience upgrades and rapid worldwide
expansion. As representatives of this industry and experienced multinationals,
the American fast food restaurant groups of KFC (Kentucky Fried Chicken)
are dominant fast food chains both in China and other parts of the world. In
2010, KFC ranked the 1st biggest fast food chain in mainland China according
to the number of market share, and its market size was more than twice the
number or McDonalds, which was ranking as the 2nd chair (Euro monitor
International, 2012). This happened on the stage of China, an ancient country
with a long-established history and unique oriental culture (Longyu Zhou,
2012)
The fast food industry in China started late in April 1987, the KFC fastfood chain store entered Beijing, and opened a prelude to the fast
development of modern Chinese fast food. Together with Pizza Hut and Taco
Bell, KFC (Kentucky Fried Chicken) belong to Yum! Brands Inc. Yum!
Company is the world's largest restaurant company in terms of system units.
KFC Corporations headquarters is located in Louisville, Kentucky, United

States. It is the world's largest fried chicken chain restaurant, measured by

sales; it is the second largest restaurant chain after McDonald's. More than
11,000 Yum restaurants have been opened in about 80 countries. Colonel
Harland Sanders founded it in 1952 by selling fried chicken. Today KFC
mainly sell fried chicken, hamburgers, French fries, soft drinks and other
Western-style fast food. It has about 18,000 locations with revenue of 15
billion US dollars (Wei Hu & Yuanyuan Xie, 2013).