KFC has become the first Western fast food giant to open a branch in the Tibet autonomous region. After its doors opened on Tuesday [8 March 2016] in Lhasa, more than 1,000 customers came to eat, according to store manager Yu Zhengqing. It remained crowded on Wednesday, with locals forming long lines inside the restaurant and kids posing for photos in front. “KFC finally came!” said one diner. Yu said they expect the store, which covers more than 500 square meters, to serve an average of 1,000 customers on normal days…Full Article: ECNS.cn Mar 2016

Key Points

  • Kentucky Fried Chicken’s restaurant in Tibet is supplied (i.e. food products such as frozen chicken) via air freight from Xi’an, Shaanxi Province.
  • Prior to KFC, Dicos (chicken products) was the only fast food chain in Lhasa, Tibet Region.

ChinaAg Comments

  • In December 2015, Kentucky Fried Chicken noted it would construct a 4.67 ha cold storage facility in the suburbs of Lhasa that could serve future expansion projects. Additionally, KFC stated that its first Tibet-based restaurant would open in late January 2016.
  • In late-October 2015, Yum Brands announced it would split off its Chinese division into a separate company.
  • In mid-October 2015, Yum stated it would lower its annual growth forecast in light of lackluster sales.
  • In August 2015, there was speculation that Yum Brands would spin off its KFC division after the CEO of Yum’s KFC Division transitioned to the CEO position of Yum China.
  • In June 2015, Kentucky Fried Chickens comprised 4,889 out of Yum’s 6,853 (or 71%) restaurants in China.
  • KFC is owned by Yum Brands, a company that also manages Taco Bell and Pizza Hut. The company also manages a high-end Italian restaurant in Shanghai called “Atto Primo”.

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