Has KFC Conquered Asia?

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- [Kento] I'm Kento Bento. This video is made possible by Skillshare, Home to over 28,000 classes to teach you a new life skill. We've already covered McDonald's on this channel, and, well, now it's time for some KFC. Kentucky Fried Chicken is the world's second largest restaurant chain, after McDonald's, with over 23,000 outlets in more than 140 countries and territories around the world. Now recently, the number of KFC outlets has been declining in the US, but the company has actually continued to grow over in Asia. In fact, KFC's largest market lies on this continent, we'll get to that soon. KFC was founded on March 20th, 1930 in Kentucky, about 90 years ago, with its very first franchise opening in Utah in 1952. Just a year later, it made its way to Canada, and in 1965, the first overseas franchise outside of North America opened in the UK. Now, it's from this point where KFC enters the Asian market, well before McDonald's, and in this video, I'll be taking you through the next 54 years of KFC's Asian ascension. So, which Asian country was the first to open a KFC? What did KFC have to sacrifice in order to compete with local markets? And how much of Asia is there still left to conquer, as of today? Indeed , we'll get to all of that, so grab a Zinger Burger, maybe some drumsticks, and we'll explore every Asian country to have ever had a KFC. The first Asian KFC opened its doors in the Philippines in 1966, perhaps a surprise to some. When you think Philippines and fast food though, KFC or even McDonald's might not be what first comes to mind. Rather, it's probably Jollibee, as many of you pointed out. A strong rival local franchise serving many a Filipino favorites. Against such a formidable foe, KFC Philippines required a new strategy, and it seemed they eventually settled on one of culinary creativity, as demonstrated by this, and this, and this, and this. Indeed these were quick sellers, despite many on social media accusing the franchise of crimes against humanity. Now moving on from the deliciously horrifying, four years later in 1970, KFC arrived in Osaka, Japan, the first in East Asia. Following years of negotiations, the franchise rights to KFC Japan was awarded to the Mitsubishi Corporation. Mitsubishi was able to quickly grow the franchise, opening 100 KFC outlets nationwide within just three years. Today, Japan is the third-largest market for KFC, behind the US. It has to be mentioned that a big part of their success though, comes from a Japanese tradition where KFC is widely eaten during Christmas time. This apparently came to be when a group of foreigners in the 1970s couldn't find turkey on Christmas Day, they opted for the Colonel's chicken instead, as the next best thing. Execs took notice and soon launched a successful marketing campaign called "Kentucky for Christmas". KFC now records its highest sales volume on December 24th, with ridiculously long queues forming outside KFC branches, and many even going as far as reserving their buckets of premium KFC a month in advance. And premium it is, as a KFC Christmas meal can feature whole roast chickens, red wine, cake, and more, and all for a pretty hefty sum. I guess it helps that if you top off Colonel Sanders with a pointy red hat, you pretty much get Santa Claus anyway. Now three years later in 1973, Hong Kong opened their first KFC, but unlike Japan and the Philippines, things didn't go according to plan. KFC Hong Kong misjudged the local market and failed to develop a suitable business model. Additionally, chickens imported from China were fed fishmeal which ruined the taste. Thus not long after it opened, KFC Hong Kong was shut down, but we'll get back to that soon. The same year, KFC arrived in Kuala Lumpur, Malaysia, which is where the popular Kentucky Nuggets was first conceived. KFC Malaysia is also commendably the first to employ people with different abilities, as can be seen here. But they're not the first KFC to set the world record for the largest amount of fried chicken served in one sitting, because that title belongs to Kuwait, the next to open, and the first stop in what we'll call KFC's great Middle East expansion. Bahrain, Jordan and Lebanon soon followed, though in the Islamic world, Colonel Sanders and his chicken often gets confused for being the face of America, with the trademark red and white, which has sometimes led to trouble, as KFC outlets in past decades have been targeted in fits of anti-American rage. In 1975, KFC opened in Dubai, the UAE, which apparently is where the world's first KFC delivery by helicopter took place. Now I thought I'd take this opportunity to quickly give a special thanks to patron and channel supporter, SwiftestCat, if that is your real name, a resident of Dubai, who I owe a shout out to. Moving on, we have Saudi Arabia, though KFC there has extremely stiff competition with a legendary local fast food chain called "Al Baik", the Kingdom's own version of KFC. In fact, it's so popular amongst its fans, that serious money is to be made by loading up on Al Baik fried chicken, getting on a plane, flying across the world to India, Australia, UK and even the US, just to deliver cold or lukewarm fried chicken at a considerable markup. This business is actually profitable, and all the more impressive considering these are countries that already have KFCs round the corner. Rounding up KFC's regional expansion, we have Qatar, Oman and Iran. KFC Iran though is worth noting, because things seemed to have started off great, which isn't surprising given the heavy Western influence at the time the secularism, mini skirts, and the numerous American fast food chains, but then something happened. The Iranian Revolution of 1979. Religious clerics took over the country, with a return to Islamic values and the removal of any and all things considered of American influence. Women were forced to cover up, Western texts were removed from schools, and American franchises were shut down, including KFC. To this day, the Colonel has yet to return. Now back to the East, Singapore was next, opening a KFC on Somerset Road. KFC Singapore was where the famous Zinger Burger was created, as well as more recently, the Mac N' Cheese Bun Fried Chicken Burger, chocolate fries, and, well, this ad, a Bird Box parody, promoting their own bird box. Then there's the first-ever KFC open kitchen store, basically a glass-enclosed kitchen that openly shows off the entire KFC cooking process to the public, shedding light on some of its most secret kitchen practices. Though if you're hoping to discover the Colonel's recipe of the 11 herbs and spices, a coveted trade secret, you wont, as that still remains strictly confidential. In 1979, KFC landed in Jakarta, Indonesia, one of the more fascinating ones here, as KFC Indonesia currently employs a six-time Grammy award winning producer, who has worked on multi-platinum recordings with the likes of U2, the Killers, Rolling Stones, to help them sell CDs and chicken. Yes, here, recorded CDs of Indonesian artists are bundled with chicken orders. CDs are still the best way to get music in the country due to only a small percentage of the population having credit cards, and the slow internet connections hindering streaming, but the way in which people go out to purchase their CDs isn't conventional, like in a CD shop as you would expect, rather they go to KFC, which in this sense runs almost like a record label that just so happens to sell fried chicken. Now, five years later in 1984, KFC opened in Seoul, South Korea. Here, the letters K.F.C. take on a whole new meaning as the country already has a well-developed fried chicken restaurant industry of its own, Korean Fried Chicken. Though unlike the Colonel's original recipe, the ingredients for Korean Fried Chicken are no secret. Fried chicken in general is huge in South Korea and competition is stiff, with chicken joints everywhere. Which is perhaps why KFC, I mean the Colonel's version, whipped out this monstrosity one year to separate itself from the pack, the Zinger Double Down King, with bacon, two cheeses, BBQ sauce, creamy white pepper sauce, a thick grilled beef patty, sandwiched between two spicy fried chicken filets, oh God. And we all thought the original Double Down sandwich launched back in 2010 was a crime. 1984 also saw the first KFC open in Bangkok, Thailand, which seems to have a thing for ice cream cones? More specifically, chocolate-coated ice cream in a chocolate cone, topped with spicy fried chicken bits. Or if that doesn't suit your fancy, there's the sweet waffle cones filled with spicy sauce and popcorn chicken, something they call a Chiffle. Though, Urban Dictionary says a chiffle is the chafing in between your thighs when going for a run. What? But even more random is this, instead of Colonel Sanders, hey, it's Colonel Hitler, with his Hitler Fried Chicken. Unsurprisingly, KFC Thailand wasn't too happy with this Bangkok knockoff, and threatened to take legal action. It's worth noting however that this sort of thing actually isn't so uncommon in this part of the world, but let's save that topic for another time. Now, at this point, we're almost halfway through, and I thought I'd share this little stat. Apparently only 12.6% of you lovely Kentonians have notifications turned on for the Kento Bento channel, which might explain why my videos tend to do so poorly right after I publish. So here's a friendly reminder to make sure to click that bell button so you never miss another Kento Bento video. Right, moving on, it's Israel's time to have a KFC, opening a branch in Tel Aviv. Unfortunately for them, this quickly went the way of Iran and Hong Kong, and low demand led to the shutdown of their one and only branch. Speaking of Hong Kong though, 1985 saw KFC revived under different ownership. This time, they were able to develop a more suitable business model, and they stuck around, even expanding to neighboring Macau. For those wondering, KFC Hong Kong and Macau are the ones responsible for popularizing those delicious Portuguese-style egg tarts that you tend to see in most KFC branches across East and Southeast Asia. Now more recently, they've been known for their ingenuity when it comes to their promotional practices, including this play on the "Game of Thrones" finale, as well as promoting their own brand of edible, fried chicken nail polish, that wearers can lick at any time to get that familiar KFC taste. Truly "Finger lickin' good". Taiwan was next, with a branch in Taipei, and just like South Korea, fried chicken there is king. Though KFC Taiwan, unlike any other, takes their chicken a step further, marinating each piece in sugar and soy, and dredging in an additional secret layer of crispy coating. The chicken is also covered with star anise, basil leaves, cloves, Chinese cinnamon, fennel seeds, and Sichuan pepper, before being deep-fried twice to give it a more crunchy and flaky exterior. This is a KFC upgrade I need in my life. Now here's the big one. Two years later in 1987, KFC opened in Beijing, China. Things started out rough though when they attempted to translate the aforementioned "Finger lickin' good" slogan into Chinese characters. What came out was "eat your fingers off". The Chinese were confused, strange marketing they thought. Regardless, after some initial missteps, they were able to quickly figure out their market and expand rapidly, with a new branch at one point opening every 18 hours. Today, they are KFC's single largest market, ahead of the US. One of the reasons for KFC's success in China is due to their localized menu items, throwing out unpopular Western dishes like the classic coleslaw and mashed potatoes, and replacing it with more palatable options like tree fungus, bamboo shoots, congee, fried dough sticks, and Peking chicken wraps. Even regional differences are adhered to, so the KFC spicy chicken in Sichuan for example, is much hotter than in Shanghai. In the western province of Xinjiang where there is a large Muslim Uighur population, some KFC franchises go further with regional customs, taking the unusual step of attracting potential local Uighur customers by advertising KFC as the perfect venue for traditional circumcision parties. Yeah, I'll leave it at that. The next few years saw KFC Turkey and KFC Brunei join the party, with both responsible for introducing new concepts to their countries. The first drive-thru in Brunei, and the first scroll-thru in Turkey. A scroll-thru branch allows users to get fed, while scrolling through their social media feed, by simulating a drive-thru experience with a virtual drive-thru attendant. This is a concept unique to KFCs in the Middle East. Now, down south, Israel was still struggling to enter the market, but they received a second chance with a relaunch in '93. Israel has already shown to be a notoriously tough market to crack, as over 60% of its population keeps Kosher, meaning they follow a set of Jewish dietary laws restricting them from eating certain foods, such as not mixing meat and dairy products, which is a problem for KFC, as the original recipe coating contains milk powder. As such, KFC Israel was simply not able to make it work, and they once again shut down. Russia was next, with a KFC in Moscow, except it wasn't called KFC, but rather Rostik's. Rostik's was an existing Russian chicken franchise that initially owned the rights to KFC in Russia, but with no intention of keeping the American branding or name. 17 years later however, Yum Brands, which is now the company that owns all the KFCs worldwide, was able to buy Rostik's themselves, meaning today the KFC branding is alive and well. Two years later in 1995, it was India's turn, with a branch in Bangalore. KFC India has the most extensive meat-free menu across the chain's global operations, which is to be expected. Though whats not expected is their penchant for serving up chicken in bizarre takeaway boxes. By which I mean takeaway boxes given to customers that double as random gadgets, like the Watt-A-Box, where you can grab fried chicken out of a box that just so happens to work as a mobile phone charger, or better yet, a DIY drone. Presumably the greasiest, chicken-scented drone in existence. This was marketed as a KFO, a Kentucky Flying Object. The next couple years, KFC further expanded in South Asia with outlets in Sri Lanka and Pakistan. Now, Sri Lanka's menu saw new items added like the KFC Sub and the KFC Biryani, though Pakistan rather chose to double down on a KFC classic, the Zinger Burger. In fact, Pakistan has a Zinger Burger obsession, with it being a mainstay of just about every small restaurant, cart, and snack bar in the capital Karachi. [Narration Error: Karachi isn't Pakistan's capital] Today, almost every menu and poster features the same image taken off the KFC website, and that's because back in the days, KFC, and the Zinger by association, was seen as a status symbol. People bragged about getting into KFC every night, and this lead to numerous copycats, to the point where the Zinger eventually became part of local culture. 1997 also saw Vietnam open its first KFC in Ho Chi Minh City, though they, in particular, had many struggles trying to stay afloat. Like the time bird flu was rampaging across Asia, killing chickens and humans alike, which led to a nationwide ban of poultry. This forced KFC Vietnam to choose from either closing down all their outlets, or replacing the C in "KFC". They chose the latter, with KFF, deciding to replace chicken with fish. In time, however, chicken did eventually return to the menu. Five years later in 2002, it was time for round three, because KFC wasn't going to let Israel go. In order to solve the kosher problem of having milk powder in the coating, KFC scientists in Dallas, Texas spent two years perfecting a brand new formula. They eventually settled on replacing the milk-based coating with a soy-based coating, allegedly retaining the same flavor as the original recipe chicken. This substitution now enabled KFC Israel to open kosher outlets nationwide, no longer violating rules against mixing meat and dairy. Now around this time, KFC arrived in Cyprus. But, I have to say this is the only country in this video that I couldn't find an opening date for. The official KFC Cyprus website though seemed to have indicated a 2005-ish launch, so I guess I'll go with that. But if any Cypriots watching happen to know a more accurate date, feel free to mention it in the comments. In 2006, KFC landed in Dhaka, Bangladesh, the first country to introduce beef to the chicken chain. This was done in keeping with the local taste. Not long after, it was Syria's turn, with a branch in Damascus. Now the first five years was good business, but then came the Syrian Civil War, with an uprising against President Bashar al-Assad's regime. This unfortunately ravaged Syria's agricultural sector, with the violence making road transportation unsafe, severely crippling the KFC supply chain. The price of diesel also increased to up to 600%, as the value of the Syrian pound plunged. As such, poverty among Syrians increased dramatically which left KFC with pretty much no customers, and thus, two and a half years into the war, KFC Syria had to close its doors. Now quickfire here, the next few years saw KFC make its way to Armenia, the first KFC in the Caucasus, Nepal, the first with an all-woman's KFC outlet, Cambodia, where KFC is targeted more towards the upper to upper-middle class, and Yemen, which, similar to Syria, eventually had to be shut down due to an ongoing civil war. In 2010, KFC opened in Astana, Kazakhstan, the first in Central Asia. This KFC however, is unique, in that its the first to have served a bit of KFH on their menu, Kentucky Fried Horse, which actually isn't so strange in a country where horse is part of the national cuisine. Next was Azerbaijan with a branch in Baku. At one point, KFC Azerbaijan had the largest KFC in the world with a 300-seater outlet inside an old Soviet railway station. It has since been overtaken by one in Ukraine, though Azerbaijan's still remains the largest in Asia. Now let's go back to KFC Israel, because something happened in 2012. Yes, outlets nationwide were now kosher, but there was one major problem. Despite KFC's claim, the new kosher chicken did not taste the same as the original chicken, in fact, it tasted worse. There were also related issues, like the batter not sticking properly to the chicken, and the high cost of ensuring poultry was killed in accordance to kosher standards. As such, sales took a dive, to the point where it became no longer sustainable. Eventually, KFC Israel had to be shut down for a record third time. Funny thing though, is around this time KFC was able to expand to the rival Palestinian territories, with a branch in Ramallah. And despite KFC Israel seemingly shutting down for good, the Palestinian-owned KFC outlets in the West Bank and even the Gaza Strip had far more success. The thing about living in Gaza though, is that if you want KFC, well you can get it, but it ain't going to be easy, because the Gaza Strip is isolated from the rest of the Palestinian Authority and governed by the controversial Islamist organization Hamas. It's easy to get KFC in the West Bank sure, but Gaza is a more complicated mess. Israel controls their airspace, and maintains a blockade over the borders, which means it's incredibly difficult for things to legally make it across, including KFC supplies. But as we all know, a silly thing like the law has never stopped people from getting what they wanted, and the demand ended up inspiring one Palestinian businessman to start a KFC smuggling/delivery business. The service enabled Gazans to order KFC from an outlet in neighboring Egypt, which then is picked up by an Egyptian taxi driver, who hands it to a courier, who smuggles it through a set of secret underground tunnels into Gaza, who then delivers it via motorcycle to the appropriate address. Here, twelve pieces of cold chicken and fries add up to about $30, with delivery taking up to four hours, which does beg the question, can this Kentucky Fried Contraband really be considered "fast food"? In 2013, KFC opened in Mongolia. Just like Brunei though, KFC Mongolia introduced the nation to their first ever drive-thru, which initially seemed a simple-enough concept, but it proved tricky, because half the cars in Mongolia feature a right-side steering wheel, while the rest, a mirror opposite. As such they didn't know where to put the drive-thru window, though I guess such issues are rather minor when compared to the difficulties of establishing reliable supply lines in a landlocked nation. Now inching closer to present day, Georgia opened a KFC in 2015, appealing to locals with menu items accommodating the Georgian Orthodox fasting traditions. Myanmar soon followed with an outlet in Yangon, their first Western food chain. They saw this as a pretty big deal, greeting the franchise with an epic KFC flash mob. Next was Iraq and Kyrgyzstan, with outlets in Erbil and Bishkek respectively, though they were met with some rather interesting competition with KFG and KentuCKy in Iraq, and Kyrgyz Fried Chicken in Kyrgyzstan. Fake KFC restaurants that had set up shop long before. 2018 saw KFC then expand West of the region to Uzbekistan, a country deemed the future development engine of the whole of Central Asia, meaning with KFC Uzbekistan as base, the franchise has now huge plans to expand further into the region. Now rounding off 2018, the Maldives opened their first KFC in their densely populated capital Male, which, while is the most recent Asian country to open a KFC, as of the posting of this video, isn't actually the last country on our list, despite already expanding to more countries than even McDonald's. Because supposedly later on in 2019, hard-headed KFC will return, once again, to Israel, which would mark their fourth attempt at entering the Israeli market. But what makes them think it'll turn out any different this time around? Well, the thing is, Israel has been undergoing a massive shift from the preference of fine dining to fast food, with a heavy influx of international consumers accustomed to Western cuisine, making their way now more than ever from America and Europe, to Israel, so perhaps fourth time will be the charm. But if you ask me, after three failed attempts, it certainly wouldn't hurt them to go over the basics of how to successfully buy and run a franchise, and that goes for any of you watching who are interested in doing the same, because Skillshare just so happens to have a course on that. In fact, you can learn whatever you want on Skillshare, with over 28,000 classes on just about anything. From how to make the most succulent southern fried chicken, take that, KFC! To how to create your own successful educational channel on YouTube, with all the necessary animations and illustrations, which is something I often get asked about in the comments. So here's a class I would highly recommend, on how to get started with illustration. This class will help you create beautiful illustrations with relatively little effort, teaching you the basics with the best tools, tips, secret shortcuts, and how to add color, contrasts, textures and effects. So if you're interested in all that, this is the class for you. And, even better, you can try all this and more for free, for 2 months by signing up at the link below. (calming music)
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Channel: Kento Bento
Views: 2,179,824
Rating: 4.875926 out of 5
Keywords: kfc, kfc asia, kfc japan, kfc china, kfc india, kfc israel, kfc singapore, kfc russia, kfc hong kong, kfc taiwan, kfc indonesia, kfc philippines, kfc history, kentucky fried chicken, mcdonald's, mcdonald's asia, asia fast food, zinger burger, fried chicken, kfc christmas, colonel sanders, yum brands, pizza hut, albaik, kfc saudi arabia, kfc south korea, korean fried chicken, double down sandwich, kento bento, finger lickin good, kosher kfc, smuggling kfc, double down
Id: 4iYt9eINS8M
Channel Id: undefined
Length: 22min 41sec (1361 seconds)
Published: Tue Jul 09 2019
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