Tag Archive | "fast food"

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Fast Food Bailout

Posted on 17 April 2009 by bolivar

fastfoodbailoutBEIJING – In the wake of massive losses, the Chinese government has voiced support for up to USD 50 billion in bailout funds for the mainland’s U.S. fast food industry.

Throughout the People’s Republic, the credit crunch and slumping economy have depressed U.S. fast food sales to levels not seen in about two decades. Once-mighty McDonald’s says it could run out of cash by next summer. Pizza Hut has a slightly better prognosis, but only because it introduced a spicy duck with green onions pizza in 2006.

Meanwhile, Taco Bell is playing its financial status close to the vest. But the company’s chief exec, Bob Nardelli, said last week that it would be “very difficult” to survive without Uncle Hu’s assistance.

Though a number of Chinese citizens said they’d reluctantly support a ‘burger’ bailout rather than see the companies disappear, most said this would be rewarding failure after decades of mismanagement and poor decision-making.

“Bailout” was the magic word Tuesday as McDonald’s had to give away millions of free kiddie meals because a Chinese netizen stumbled on an online promotion the company scrapped.

Tim Fenton, president of McDonald’s 37-country Asia/Pacific, Middle East and Africa (APMEA) division said Wednesday that the company prepared an Internet coupon for an ad campaign that was considered in December but not approved.

He says someone apparently typed “bailout” into a McDonald’s promo code window and found it was good for a free kiddie meal.

Word about the code spread quickly on the Web and 24 million free meals were handed out before it was deactivated Wednesday morning.

Shanghai-area franchise owner Zhou Lipeng says his 82 stores gave away more than half a million meals, but that McDonald’s promised to reimburse him.

As a result of the losses, McDonald’s announced that it was on the verge of bankruptcy. Threatened with massive job losses, the Chinese government quickly announced that bailout funding would be available before the end of the week.

Following the announcement, a McDonald’s spokesperson stated that the company is temporarily halting its ‘Open Door’ policy, launched last year to encourage Chinese consumers to visit McDonald’s and understand what it is all about. Consumers could tour the kitchen and ask questions about menu, quality, preparation, etc.

The policy will be replaced with a new ‘Ask Me’ program which invites customers to query crew members (or the company through its www.AskMe.com.cn Web site) about the use of its tax monies. This, McDonald’s executives say, is especially important in a country where transparency issues are of great public concern.

To further establish the brand’s transparency, nutrition information is available from in-store materials and soon will be on product packaging as well. It’s not something Chinese consumers requested, rather a way to further position McDonald’s as open and customer-friendly, Fenton said.

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Rise In Rent Forces Local KFC To Take On Roommate

Posted on 31 March 2009 by admin

kfc2SHANGHAI – With rents soaring and operating costs at an all-time high, management at the Huaihai Street KFC decided earlier this month to lessen their financial burden by taking on a roommate, 24-year-old Wang Xufang. Manager Li Guoring said he found the fried chicken chain’s new occupant after posting a classified ad on Sina.com. The online ad reportedly offered a 100-square-foot storage room, with access to a modern restaurant-style kitchen, shared public bathroom, and spacious walk-in fridge, for RMB 1,200 a month.

Wang, who fit the qualifications of being a responsible non-smoker with no pets, replied to the notice and was quickly approved to move in following a brief interview.

“We were really excited about getting a roommate,” said Li, who claimed that the restaurant would have had to move to a cheaper location were it not for the extra rent money. “Everybody got along great with Wang at first, and it was fun to have someone new around the place. Plus, he’s got this really amazing collection of kungfu DVDs.” “Unfortunately, Wang also has a tendency to leave his clothes all over the dining room floor and walk around the kitchen in his boxers while we’re trying to cook,” Li added. “And yesterday he left his bike parked in the bathroom for 12 hours. That’s just inconsiderate.”

Since moving in, Wang has irritated several members of the KFC staff. On Monday, the new roommate refused to wash a tray of plucked poultry, claiming that he should be paid just like anyone else for his efforts. In addition, Li reportedly inconvenienced dozens of customers on Friday by throwing a family party during business hours, and letting his friend Wen crash in the walk-in fridge for three days.

The new living situation has frustrated both full-time and part-time employees, many of whom have complained about not being able to focus on their work with Wang constantly around. Head cashier Deng Fei Fei, 19, said she was forced to quit last week after Wang entered her work area on several occasions wearing nothing but a towel. Others claimed that Wang is the worst roommate they’ve ever worked with.

“One morning I came in and he had used up all the hot sauce packets without even leaving a note,” said Yu Langfang, who works the early shift at KFC. “And last week, he pretty much ate all the wings in our fridge and then said he’d get us back the next time he went shopping.”

Added Yu, “We couldn’t serve half our menu that day.”

While Wang has infuriated employees by pounding on the windows after misplacing his keys, tension between the new roommate and staff reportedly reached its breaking point Wednesday, when Wang left the front door open all night, and costly KFC property was stolen.

“Sure, it sucks when customers get angry about Wang brushing his teeth in the bathroom, or when he leaves half-eaten drumstick on the counter, but this is too much,” Li said. “They took our damn Frialator.”

For his part, Wang said he is also unhappy with the current arrangement. Calling his new living situation “fucking gross,” the 24-year-old was appalled to discover that his roommates never washed their hands, and was tired of “people stinking up his home” with their “disgusting food.”

“That smell of the fryers lingers forever,” said Wang, adding that it’d be nice if someone cooked something other than Southern fried grease every now and again. “I can still smell it on my clothes and pillow.”

In addition, Wang said he was getting tired of the steady stream of people showing up in his home at all hours of the night.

“What’s up with all these drunk losers coming over at 2 a.m.?” he said. “This place isn’t bad, but I’m totally going to bail if people aren’t more respectful around here.”

KFC management claimed that if the situation didn’t improve soon, they would call a house meeting to kick out Wang, and instead supplement their income by giving erhu lessons.

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