Fast food chicken chains in China ruffle feathers at KFC

KFC may have the monopoly on fast food chicken in China now, but local chains cnHLS and Dicos are also catching up, says a new market report. AFP pic
BEIJING, Feb 7 While Colonel Sanders may have the Chinese market under its wing, local chicken chains are also gaining on the US-based brand, says a new market research report on the top 10 global foodservice chains to watch out for.

Since opening its first outpost in mainland China in 1987, KFC has become a ubiquitous presence, battering even McDonalds as the undisputed Western fast-food chain in the country. Its estimated the company opens more than one new unit every day in China and today counts 3,500 restaurants in 700 cities across the country.

But while the US-based chain has developed a loyal fan base, global market research group Euromonitor has identified a pair of local fast food chicken chains as rising brands to watch out for, given that combined sales at cnHLS and Dicos amounted to US$1.3 billion (RM3.91 billion) in 2010.

In their report released February 4, Euromonitor analysts credit the companies for expanding into rural areas and smaller cities outside major markets like Beijing, Guangzhou and Shanghai, as well as lower price points for driving sales growth among the local competitors.

Dicos is described as Chinas version of KFC as it sells deep-fried chicken, while cnHLS sells everything from whole honey-glazed chickens, chicken burgers and wings to hamburgers and fish sandwiches.

Between 2007 and 2010, sales at cnHLS grew a whopping 416 per cent to be valued at US$407 million in 2010.

KFCs formula for winning over Chinese consumers has been to cater its menu to local tastes, such as offering a breakfast chicken congee (savoury rice porridge) or the Dragon Twister, KFCs version of Peking Duck in wrap sandwich form.

Meanwhile, in its list of top 10 foodservice chains to wa! tch out for, Euromonitor named South African chain Nandos as a rapidly growing brand around the world. AFP-Relaxnews


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