KFC, owned by Kentucky-based Yum! Brands, started out as the quintessential American fast food company, originally being named Kentucky Fried Chicken.

What could be more patriotic than deep-fried chicken wings with special roots in the U.S. south? In 1973, the company opened 11 restaurants in the British colony of Hong Kong but closed them within two years because it couldn't win over local consumers. Decades later, KFC returned, opening up stores in Beijing and slowly adapting its model to the Chinese system.

KFC's Chinese managerial staff is young and hip. College-aged employees at KFC franchises are encouraged to socialize over company-provided video games on their breaks. The goal is to create lifelong Yum! Brand customers. These practices helped to make the individual restaurant feel localized, even family oriented.

Besides serving some American fare like darkmeat chicken and corn on the cob, KFC sells more Chinese-styled fast food to appeal to local tastes.

Offerings include Dragon Twister, a chicken wrap in Peking duck-type sauce, spicy tofu chicken rice based on the cuisine of Sichuan province, home of China's hottest dishes, as well as fried dough sticks, egg tarts, shrimp burgers, and soymilk drinks.

KFC also actively advertises to appeal to Chinese culture. For example, in Urumqi, capital of the Xinjiang province, a Muslim region of China, KFC advertises parties for family boys who have just undergone the religious ritual of circumcision, instead of just birthday parties like they do in the United States.

Some claim that every day KFC in China moves further away from its U.S. roots. They believe that Chinese customers eating in a KFC establishment really want the U.S. experience—with the Colonel watching over them. Others think that adapting to local preferences means KFC needs to drop forks for chopsticks. KFC-China, with a focus on a consistent appreciation for the culture and unique needs of its consumers, might even become the birthplace of a new cuisine all together.

Questions

1. What is your forecast for changes in KFC cuisine both within China as well as globally? 

2. How far should KFC China go to keep its U.S.-based roots or to adapt to its location’s culture?