Popeyes flexes its muscles in China as KFC feels the heat

Popeyes’ fried chicken sandwich went viral on US social media. (Reuters)
Updated 20 November 2019

Popeyes flexes its muscles in China as KFC feels the heat

  • Popeyes signed a lease in Shanghai for its first store in China on Monday

SHANGHAI: US fried chicken chain Popeyes wants to become the top chicken brand in China, the chief executive of its parent company said on Tuesday, as it prepares to take on KFC, the leading player in the world’s most populous market.

Popeyes signed a lease in Shanghai for its first store in China on Monday, which is expected to open next year.

The company outlined plans in July to build 1,500 restaurants in China in the coming decade, becoming the last of Toronto-based Restaurant Brands International Inc’s main brands to enter the country.

By contrast, Yum China’s KFC has about 6,300 stores. Yum has said that it is acutely aware there is more opportunity to expand in China, noting that while it was in 1,300 Chinese cities, there are still as many as 800 cities without a KFC store.

Popeyes’ July plan was “just really to put a framework on the short-term potential business,” Jose Cil, RBI’s CEO said in an interview in Shanghai.

“I think we can be the No. 1 chicken brand here in China and all around Asia,” he said, adding that consumers in the region were looking for options. He dismissed concerns that a slowing China economy and trade tensions had dimmed prospects for growth in the long term.

Cil’s remarks comes as the Cajun-inspired fast food chicken chain experiences a surge in popularity in the US after a newly launched fried chicken sandwich went viral on social media.

Demand was such that Popeyes had to stop taking orders after only two weeks before relaunching it this month.

The sandwich will also be offered in China, he said.

Cil noted that RBI’s other two main brands had seen rapid growth in China.

Burger King has expanded to around 1,100 stores in China from less than 100 in 2012. “We think we’ll keep growing at a steady pace,” Cil said.

And Tim Hortons, its Canadian coffee chain, just opened its 28th store in China after launching there in February.

“We are preparing ourselves to be able to accelerate growth in the coming years,” Cil said of
the brand.


Germany mulls how to attract skilled labor from outside EU

Updated 16 December 2019

Germany mulls how to attract skilled labor from outside EU

  • The new legislation will take effect March 1
  • German official said shortage of skilled workers is currently biggest risk to business

BERLIN: Chancellor Angela Merkel is meeting top German business and union officials on Monday to discuss how to attract skilled workers from outside the European Union as the country tries to tackle a shortfall of qualified labor.
Legislation is due to take effect March 1 making it easier for non-EU nationals to get visas to work and seek jobs in Germany. Arrangements currently applied to university graduates are being expanded to immigrants with professional qualifications and German language knowledge.
“Many companies in Germany are urgently seeking skilled workers, even in times of a weaker economy,” Eric Schweitzer, the head of the Association of German Chambers of Commerce and Industry, told the Funke newspaper group. “For more than half of companies, the shortage of skilled workers is currently the biggest risk to business.”
He called for “unbureaucratic and effective implementation” of the new legislation.
Sectors including information technology and nursing have complained of a shortage of workers.
Monday’s meeting will discuss which countries German business wants to focus on “and we will cut out the bureaucratic hurdles,” Labor Minister Hubertus Heil told RBB Inforadio. He named as examples the process of recognizing professional qualifications, language ability and visa procedures.
Like many other European countries, Germany is trying to strike a balance between the needs of its labor market, an aging native population and concern about immigration.
Heil said that the aim isn’t to undercut German wages and “our problem at the moment is rather that we are not being overrun, that we are not getting qualified workers.”