By: James L. Watson. American food chains and beverages are everywhere in Central Beijing - Coca-Cola, Starbucks, KFC, Dunkin’ Donuts, Baskin Robbins,

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Presentation transcript:

By: James L. Watson

American food chains and beverages are everywhere in Central Beijing - Coca-Cola, Starbucks, KFC, Dunkin’ Donuts, Baskin Robbins, Pepsi, TCBY, Pizza Hut and of course McDonald’s - As of 1999, McDonald’s had opened 235 restaurants in China. Hong Kong alone now has 158 McDonald’s franchises, one for every 42,000 residents (For the US there is one for every 30,000)

“Young people everywhere are avid consumers of soap operas, music videos, cartoons, electronic games, celebrity posters, trendy clothing, and faddish hair styles…” Question- Where do they get these things? What influences young people the most in everyday society? Answer- “…shopping malls, supermarkets, amusement parks, and fast food restaurants.” Along with these things is the media, American Hollywood, etc

…The cultural message we transmit through Hollywood and McDonald’s goes out across the world to capture, and almost undermine other societies…Unlike traditional conquerors, we are not content merely to subdue others: We insist they be like us. -McDonald’s today has more than 25,000 outlets in 119 countries. Most of the corporation’s revenues now come from operations outside the United States. * A new McDonald’s restaurant opens somewhere in the world every 17 hours *

-How did McDonald’s do it? -How did a hamburger chain become so prominent in a cultural zone dominated by rice, noodles, fish, and pork? -In China, adult consumers often report that they find the taste of fried beef patties strange and unappealing, so why do they come back to McDonald’s? Why do they encourage their children to eat there?

-Rising incomes are dramatically changing lives (more married women in Hong Kong, Beijing, and Shanghai work outside the home) -In larger cities, men no longer ‘rule the roost’ -The traditional system of living with the groom’s parents is dying out fast, even in the Chinese countryside (newlyweds are choosing to create their own homes)

- McDonald’s opened in Beijing in 1992, a time when changes in family values were matched by a sustained economic boom -This time came with a public taste for all things ‘American’. (sports, clothing, films, food, and so on) -American style B-Day parties

-Many accuse McDonald’s as a polluter and exploiter -Chinese consumers see the company as a force for the improvement of urban life. (Clean toilets were more than welcome…. “until recently, a visit to a public bathroom could be harrowing” -The chain’s preoccupation with cleanliness has raised consumer expectations and forced competitors to provide equally clean facilities

“For the system to work, consumers must be educated- or “disciplined”- so that they voluntarily fulfill their side of an implicit bargain: ‘We (the corporation) will provide cheap, fast service if you (the customer) carry your own tray, seat yourself, eat quickly, help clean up afterward, and depart promptly to make room for others.’”

During McDonald’s first three years in China, Communist Party Officials could barely restrain their enthusiasm over this new model of modernization, hygiene, and responsible management. By 1996 however media enthusiasm cooled as state authorities began to promote an indigenous fast-food industry based on noodles, barbecued meats, soups, and rice pots