Burger King's China Challenge

Source: Zhenghe Island and Sea Neighbor

Amid fierce competition in China's fast-food market, Burger King's 9.9 yuan set menu strategy does not seem to have been as successful as expected.

After Burger King launched the 9.9 yuan package, it once became the focus. Although this strategy has created a sales miracle in the short term, the "2023 China Fast Food Industry Report" released by Meituan Research Institute shows that more than 180,000 copies of the set were sold in the first three months of its launch, but this figure pales in comparison with the revenue growth of KFC and McDonald's in China. According to the China Restaurant Report 2023, KFC's annual sales in China have reached tens of billions of yuan, while McDonald's has exceeded 30 billion yuan.

At the same time, RBI Group, the parent company of Burger King, expressed concern about the prospects of the Chinese market at the earnings conference, which undoubtedly cast a shadow over the future of Burger King in China

The localization contest of foreign fast food

In China's foreign fast food market, the success of the localization strategy often depends on the brand's deep understanding and effective integration of the local culture.

But the Waterloo of "Sichuan-style burger" and "spicy crayfish burger" in the market provides us with two interesting cases.

Some netizens pointed out that although the "Sichuan-style burger" emphasized Sichuan characteristics in the promotion, it failed to achieve the expected spicy effect in terms of actual taste. A Weibo netizen commented: "Sichuan-style burger, not spicy enough, no numbness at all, it feels like an ordinary burger with a little chili sauce." This lack of taste satisfaction has made the product fail to really attract consumers who are looking for authentic Sichuan flavors.

The "Spicy Crayfish Burger" also faces the challenge of blending tastes and cultures. Although crayfish is very popular in Chinese late-night snack culture, the attempt to combine it with Western-style fast food has not been recognized by all consumers. On Dianping, a consumer said: "The concept of spicy crayfish burger is very novel, but it feels like the two don't match, and the taste of crayfish is not as fresh and fragrant as street food." This gap between taste and expectations has led to a suboptimal performance of the product in the market.

It is also a localized innovative product, but KFC's tender beef Wufang has achieved great results.

First of all, KFC warmed up through social media platforms and released a series of engaging teaser videos and posters that successfully piqued consumers' curiosity. At the time of the product launch, KFC also invited a number of influencers and KOLs to taste and promote it, and the recommendations of these opinion leaders greatly increased the exposure and discussion of the product.

In addition, KFC also cleverly combines the five sides of the tender beef with traditional Chinese festival culture, such as launching a special edition of the five parties during the Spring Festival, and incorporating a strong festive atmosphere and family reunion scenes into the advertisement, which not only enhances the cultural identity of consumers, but also makes the product resonate with consumers' emotions.

Consumer reviews of KFC Tender Beef Wufang are generally positive. On major food forums and social media, consumers have praised the taste and creativity of this product. Some consumers said: "The dough of the tender beef Wufang is soft and glutinous, the beef is tender and juicy, and the sauces are also very right, which not only tastes Chinese, but also does not lose the convenience of Western-style fast food." This positive consumer feedback further promotes word-of-mouth communication of the product, forming a virtuous market cycle.

Unlike KFC's bold innovation, McDonald's is a solid approach in the Chinese market, which is reflected in its adherence to the brand's core values and its accurate grasp of consumer needs.

McDonald's is not overly localized, but has moderately introduced some products that meet the tastes of Chinese consumers while maintaining the brand characteristics.

McDonald's marketing strategy focuses on interaction and experience with consumers. For example, McDonald's has launched the "McDonald's China Menu" series, inviting consumers to participate in naming and testing the taste of new products. This sense of engagement makes consumers feel like they're contributing to McDonald's products, which strengthens loyalty to the brand.

In terms of consumer evaluation, McDonald's has always maintained a good brand image. Consumers generally believe that McDonald's products are stable and reliable, and the service is fast and friendly. On Weibo, a consumer said: "Although McDonald's doesn't have many localized products, its burgers and fries are always so delicious, and every time I go, it feels familiar." This steady marketing strategy has enabled McDonald's to maintain continuous growth in the Chinese market.

Marketing wars in the restaurant world

In the wave of innovation in China's catering industry, every attempt by a brand is not just a simple change to the taste or packaging of the product, but an all-round innovation that penetrates into the market context.

Haidilao opened an unmanned restaurant, which coincided with the period of vigorous development of high-tech industries, and Haidilao attracted a large number of customers and media attention by using robot services and intelligent ordering systems. According to reports, the restaurant received more than 1,000 customers per day in the early days of its opening, which effectively enhanced the brand's technological image and market competitiveness.

KFC's "Chinese Style" series is an ingenious integration of traditional festival culture, strengthening the brand's localized image and showing respect and understanding of Chinese market culture through products such as Dragon Boat Festival zongzi and Mid-Autumn Festival mooncakes.

Starbucks' limited-edition "Cat's Paw Cup" sparked a heated discussion on social media in a short period of time and quickly sold out. This case study shows how to capture consumers' attention and increase the brand's market presence in a short period of time through unique product design and effective social media marketing.

Luckin Moutai, which exploded last year, was also an event marketing that was generated through the fusion of Moutai, a luxury product and coffee.

Back to Burger King, as a hardcore American burger brand, if you want to play in the mid-to-high-end market, you can refer to American barbecue.

American rotisserie is able to sell at a higher price because they often offer a unique product positioning and consumer experience. American rotisserie offers high-quality meat products and unique grilling techniques, as well as a more sophisticated dining environment, all of which combine to increase consumer acceptance of price. In contrast, the products and services of ordinary foreign fast food are relatively standardized and lack uniqueness, so it is difficult to achieve a high price point in pricing. If Burger King wants to make a breakthrough in pricing, it needs to focus on product differentiation and consumer experience to provide a differentiated value proposition.

For Burger King, success in the Chinese market requires learning from the above cases. Burger King needed to better understand the needs and preferences of Chinese consumers, and enhance the brand's differentiation and consumer experience through innovative product development and marketing strategies. This not only means localizing innovation in products, but also how to establish an emotional connection with consumers through effective communication and interaction.