2004 Annual Meeting - Abstract


Fast Food in a Chinese Provincial City: A Comparative Analysis

Haiying Zhu
Texas A&M University

More than a decade ago American fast food entered into Chinese market. Since then the number of fast-food and organized chain restaurants in China has multiplied. Chinese consumers, especially those who live in large urban areas, have accepted Western-style fast-food restaurants that serve French fries and other popular dishes as a way of life.

Inspired by the success of the symbolism of McDonald's and KFC, many Chinese restaurants have tried to use traditional Chinese culture to lure customers into what is advertised as indigenous, modern fast-food outlets. As a result, competition between foreign and domestic fast food has become endemic. Examples are US Californian beef noodle against Chinese beef noodles, or Shanghai Ronghua Chicken vs. American KFC. Until recently, the results have been similar: foreign counterpart always gained the upper hand. Chinese media asked with concern why Chinese-style fast food had difficulty expanding in the Chinese market.

Recently this has begun to change. Some Chinese fast-food entrepreneurs have successfully developed local versions of Western fast-food system. My contribution is to discuss some of the reasons why this change is taking place. Based on my three months’ ethnographic research in Huai’an, recent developments in the fast-food market in this provincial city are examined. Most previous studies on fast food in Chinese cities have focused on major metropolitan areas such as Beijing, Shanghai, Hong Kong, Nanjing, etc. Huai’an is a medium-sized city in East-Central China, with an urban population of approximately 510,000. Due to the lack of natural resources and unstable economic condition, Huai’an is still economically backward and socially conservative. By focusing on Huai’an, the study provides a glimpse of the degree to which modern developments, at least as reflected in the fast-food sector, have penetrated a region of China’s vast hinterland. In addition, little systematic research has been conducted on the characteristics of local, Chinese-style fast-food restaurants, which have been developing very quickly in recent years. I address the competitive situation between American fast-food restaurants and local Chinese ones, and between different types of Chinese fast-food outlets as well. I will do so by examining service, price, management, food and customer expectations.

Specifically, this case analysis includes one of the largest American fast-food chains, one of the largest Chinese fast-food restaurant chains, and one small domestic fast-food enterprise. Outlets of these enterprises are located in the central business district of Huai’an. The data discussed is based on participant-observation, informal and formal interviews, a sample survey, and historical documents. The results are analyzed both qualitatively and quantitatively.

The study finds that in Huai’an, several local fast-food restaurants, after improving décor, hygiene and service, have become as crowded as the nearby McDonald’s and Kentucky Fried Chicken. Although the Western chains have certain advantages (such as service, capital, technology, management, etc.), by combining some of these advantages with local food preferences, indigenous fast-food restaurants have experienced increasing success in the local market. I will show that the globalization process has experienced two types of localization in Huai’an. First, Western chains have striven to adapt to the consumers in Huai’an, by insisting on a high degree of local ownership and by modestly tailoring their products to the local taste. Second, the mere presence of these Western chains has encouraged Chinese entrepreneurs to develop decidedly local versions of modern fast-food enterprises.