KFC opened the first restaurant in China in 1987, when western style fast food restaurants were unknown and a novelty. In China, KFC was a taste of America and a place where people went for special occasions. By 2015, KFC had been in China for 28 years and was losing its young and energetic image.
Our challenge was to help support the transformation of the KFC business in China through the creation of an experience that would engage with millennials. Resulting in growing influence and strong sales growth.
We noticed that light meals have become a lifestyle trend among young consumers. Moreover, the rapid development of the food delivery service has also changed the competitive landscape. Today, young Chinese consumers go to a restaurant more for experiences and social purposes.
Based on this insight, Isobar and KFC put in place several strategic focuses which encompassed an interactive, innovative and entertaining dining experience.
We then set out to create a digital transformation for new retail experiences and brand commerce:
1. Rejuvenate KFC’s image and brand experiences to turn around business
2. Transform a traditional offline retail chain to a digital-centric organization
3. Go beyond “fried chicken” by diversifying products and services into strong growth categories
KFC has delivered strong overall performance with impressive system sales growth and same store sales growth in China.
Driven by digital initiatives, KFC continued to strengthen membership programs. By the end of the second fiscal quarter of 2017, total members of KFC WOW Membership reached 83 million, making it one of the largest loyalty programs in the restaurant industry worldwide in terms of number of members.
Isobar: Retail Transformation
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