Restaurant Value Project-KFC and Christmas in Japan

This is the second part of our value engineering program, this time we will delve into a case study. Restaurant value engineering is a fairly new term for restaurants, but it has been practiced in some industries.They are doing some of its components, but this will bring the most cutting-edge things, some very tangible things that can give you an idea of ​​how to increase restaurant profitability

How can Japan, KFC and Christmas blend together in any form or form?

Japan is not a country that celebrates Christmas.

Christmas is not a time when people traditionally celebrate with chicken, but somehow, Coronel appeared.

What is the value created there? I think this is value engineering rather than marketing, because marketing is about getting information from products or services that meet demand.This is something that is not in demand

Japan’s religion is mainly manifested in Shintoism and Buddhism, and only 1% of people believe in Christianity. Interestingly, Christmas is so popular in Japan. The story begins with the end of World War II after Japan surrendered to the United States in 1945. With the slow reconstruction of the economy, this has brought a lot of austerity to the Japanese people. In the 1950s and 1960s, prosperity increased and people began to have disposable income. They are very interested in American culture.

KFC in Japan

KFC Japan was originally a joint venture between the US parent company and Mitsubishi Corporation of Japan. The first store opened in Osaka in March 1970. The KFC headquarters hopes to have a suburban strategy, but due to the differences in the operation of public transportation in Japan, this strategy is not effective. Japanese cars are not that big, which makes it difficult to move in the suburbs. This is why KFC Japan was keen to transition to urban promotion in 1972, and things started to take off. Colonel Sanders personally visited KFC in Japan three times. By 1983, they had 390 branches and sales of US$300 million. In 1993, sales were 1.2 billion and the number of stores was 1,000, but as often happens in franchise promotion, there was a large number of same-store cannibalization, and the geographical distribution between stores was not enough, so one hundred stores were closed.Now they are back, with 1,100 stores and sales of 730 million

How do we spend Christmas in this combination?

In 1970, Takeshi Ogawara, the first manager of the Japanese KFC restaurant. The story goes like this. He heard one of his Western friends complain that it is impossible to have turkey for Christmas lunch. He doesn’t have turkey to sell, but he is selling chicken. Another well-circulated story is about a customer who wanted to bring fried chicken in Santa Claus costume. Then there is the story of Da Hawon dressed as Santa Claus to go to the Christmas party. The children liked it, so he saw a business opportunity.

Okawara came up with the concept of a party bucket, which is an analogy to Christmas turkey. Although the concept of Christmas does not exist in Japan, so there is a chance to understand what Christmas may or should be in Japan, and chicken has become a popular Christmas meal. In 1975, they launched the Kentucky Christmas event.

Use the perspective of restaurant value engineering to listen and learn from this case study.

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