Coffee is going to be big part of KFC’s future-and the ambition goes far beyond the stunt of testing an edible coffee cup. Thousands of KFC restaurants in China, where the fried chicken purveyor is already the single largest fastfood chain, will start selling freshly ground coffee this year in a bid to become a lower-cost “premium” alternative to Starbucks. Trying to beat Starbucks on higher-quality coffee in China makes more sense than it might seem for KFC, which has a long-established breakfast menu featuring such local fare as congee-a rice porridge with pickles and preserved egg. Starbucks, meanwhile, has spent the past 16 years spreading the concept of “coffee culture” and cultivating demand for high-price brews throughout China…Full Article: China Daily Apr 2015

Key Point

  • As of early 2015, KFC had 4,500 stores in China, while McDonald’s and Starbucks had +2,000 and 1,500 stores, respectively. Out of the 4,500 stores, KFC intends to sell premium coffee in 2,500 of them initially.

ChinaAg Comments

  • According to the Mintel (market research firm), by 2019, China’s coffee market with reach approximately US$14.16 billion.
  • According to the President of Starbucks China, as of December 2014, the company had 1,400 shops located across 84 cities.
  • In January 2013, Starbucks China announced plans to have 1,500 shops by 2015.
  • In February 2014, KFC in China was accused of using genetically-modified soybeans in its soy milk. KFC stated that it sources its soybean powder from northeastern China and not from GM-imports.

Similar Posts by ChinaAg

Spread the word. Share this post!