Wednesday, July 14, 2010
The Fast Food Nation - China
The taste for fast food and the demand for fried chicken is in full swing in China.
Yum Brands, the parent company of KFC, declared that profits from its operations in China have skyrocketed 33% in the second quarter.
Yum opens one new KFC in mainland China almost every day.
That's not counting the 3,000 KFC's operating in 650 Chinese cities.
The company plans on eventually opening at least 20,000 fast food outlets in mainland China.
Meanwhile, executives with Yum Brands Inc. are suggesting that some KFC restaurants in the U.S. may close if that's what it takes to make the chicken chain more profitable overall.
Yum Chairman and CEO David C. Novak told industry analysts that the company will do whatever it takes to make the chain a fast-food leader.KFC's second-quarter revenue at KFCs in the U.S. that have been open at least a year fell 7 percent.
But in China, In the KFC is highly profitable and has become a dominant fast-food brand. Yum's China operations posted a 33 percent rise in operating profit in the second quarter, driven mostly by KFC sales.