KFC enters the Chinese coffee market in an all-round way to compete with McDonald's at low prices.

KFC has set the price of its freshly ground coffee at 10 yuan, which just misses the price of McCoffee from McDonald's, its main competitor in the freshly ground coffee market, and Starbucks's around 30 yuan.

On January 16, KFC told China Business Daily that KFC will fully develop the coffee market. In 2015, KFC will launch freshly ground coffee series in 1000 restaurants in no less than 20 cities, according to he Yong, vice president of brand planning.

With the increasing popularity of the coffee market, in recent years, McDonald's, Haagen-Dazs and other brands have entered the coffee market. KFC has set the price of its freshly ground coffee at 10 yuan, which just misses the price of McCoffee from McDonald's, its main competitor in the freshly ground coffee market, and Starbucks's around 30 yuan.

KFC freshly ground coffee

In recent years, the Chinese coffee market began to break out. Compared with the 2 per cent growth in global coffee consumption, China's coffee consumption is growing at a rapid rate of about 15 per cent a year, more than seven times the global growth rate, according to a set of data from the Financial Times.

In fact, as the coffee market broke out in China, especially after Starbucks became popular in China, many foreign catering companies, such as McDonald's and KFC, began to "covet" the market. In 2009, McDonald's introduced the coffee business brand "McCoffee" to the mainland market, which was 10 years later than Starbucks, but with the advantage of close integration with McDonald's restaurants, McCoffee has reached 661 stores in just five years, making it a new growth point for McDonald's performance in China.

As a latecomer, McCoffee not only has a slightly lower price than Starbucks, COSTA and other coffee brands, but also highlights the brand characteristics by promoting professional baristas. Good. Stagger the competition with Starbucks. McDonald's official told reporters that the number of McCoffee stores in Chinese mainland has exceeded 800, approaching the current number of Starbucks stores in China.

KFC began testing coffee products as early as 2009, first testing freshly ground coffee in some KFC restaurants in Shanghai and Beijing, and finally trying to sell freshly ground coffee on a large scale in Shanghai in early November 2014. Subsequently, from January 12, 2015, KFC launched a series of freshly ground coffee products in more than 300 restaurants in Beijing, and began to launch to KFC restaurants across the country. At present, there are more than 600 KFC restaurants serving freshly ground coffee. It is reported that Haagen-Dazs also entered the coffee market at the end of last year, and the catering market has already set off a "coffee war".

The 2014 China franchise Investment Survey report released by the China chain Management Association shows that in the most promising franchise industry, coffee and beverages received nearly 80 per cent of the voter turnout. This shows that the coffee industry has attracted the attention of many merchants in terms of retail terminals. Industry data show that the space of China's coffee market will continue to expand. China's coffee market will enter a period of rapid growth in the next 10 years, and its consumption is expected to reach 300 billion yuan by 2020.