KFC vows to pursue expansion in smaller markets

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KFC Corp, the largest foreign fast-food chain in China, said it will accelerate its expansion in smaller cities despite the global economic slowdown.

"KFC will open more than 500 restaurants each year in the future, compared with 400 annually over the past two years," said Mark Chu, president and chief operating officer of Yum Brands China Division.

"In addition to the first- and second-tier cities, there is broader room for development in the fourth- and fifth-tier cities."

Earlier this year, KFC's parent company, Yum Brands, signed an agreement with Suning Appliance Co, in which Yum agreed to open 150 restaurants, including KFCs and Pizza Huts, inside Suning stores over the next five years.

KFC entered the Chinese mainland market in 1987. It had 400 restaurants in 2000.

Four years later, the figure jumped to 1,000, and it went to 3,000 restaurants in 2010. It now has 4,000 restaurants across the mainland.

"KFC's system and management model have provided the best possible way to ensure each KFC restaurant has the same quality. Even though the economic environment has brought considerable pressure, KFC has maintained growth momentum," Chu said.

KFC's biggest rival, McDonald's Corp, the world's biggest restaurant chain, said it plans to open 225 to 250 outlets in China this year, after promising last year to increase its investment by 50 percent.

McDonald's, which entered the Chinese mainland in 1990,has more than 1,500 stores on the Chinese mainland. It aims to expand its China network to more than 2,000 outlets by 2013.

According to Euromonitor International, Yum led the market with a 40 percent share, compared with 16 percent for McDonald's.

About the broadcaster:

Nelly Min is an editor at China Daily with more than 10 years of experience as a newspaper editor and photographer. She has worked at major newspapers in the U.S., including the Los Angeles Times and the Detroit Free Press. She is also fluent in Korean.