KFC targets China for coffee sales

The Chinese coffee sector is about to welcome a new, super-sized player in the coming weeks, one that could cause Starbucks and other established coffee chains a real headache or two.

Enter KFC, the company formerly known as Kentucky Fried Chicken.

The fast-food chain started selling ‘gourmet’ coffee at a number of their stores late last year to a generally positive reception and Yum! Brands, the owners of KFC franchise, hope that they can cash in on China’s rapidly growing desire for premium coffee.

“We were very pleased with the results,” said Yum’s chief financial officer to The China Daily, whilst discussing plans about a 2,500 store rollout.

The move could see them become the biggest coffee retail in the country. KFC has a portfolio of 4,500 outlets in China, a number which dwarfs both Starbucks (roughly 1,500) and McDonald’s (over 2,000, all of which serve coffee and other McCafe products).

It is believed that KFC will attempt to undercut Starbucks somewhat and capitalise on two very different demographics. The average Starbucks customer is unlikely to visit KFC on a morning and vice-versa.

But – as the diligent have pointed out – KFC might not even be aiming to compete with Starbucks, instead they have McDonald’s and other more ‘budget’ branded stores. When it comes to food, KFC holds the upper hand in this area.

Is coffee supremacy a formality?

With a visible presence in the sprawling metropolitan areas of Shanghai, Hangzhou and the capital Beijing and other major cities, the Chinese could be heading to KFC for their morning coffee – as bizarre as that sounds to our Western ears!

photo: Steve Webel  (Creative Commons)