Embracing Change New strategies take restaurant chain to next level by Nicole Wong Changing concepts in dining behind transformation of fast-food group Restaurants and fast-food chains in Hong Kong have been moving with the times to keep up with changing consumer tastes. As a result, even well established operators have been introducing new menus, updated dining environments and innovative promotional campaigns. However, these efforts only translate into greater business success if they are accompanied by a genuine interest in getting closer to customers and aligning staff with a defined corporate culture. Birdland (Hong Kong) Limited, the operator of KFC restaurants in Hong Kong and Macau, has transformed itself in the last few years by making a number of strategic moves to expand the scope of its business. The company has broadened its focus to encompass the "total experience" for the customer, including service, dining environment and ambience, as well as the quality of food and efficiency of operations. This was done through a series of initiatives intended to create a chain of "casual dining" restaurants, which went beyond previous expectations. The success of our strategic moves has been built on a solid understanding of the company's culture Marketing strategies KFC made young customers the main target, and their preferences and tastes were the priority in devising marketing strategies. Surveys and focus groups were used to track opinion and discern trends in order to tailor promotions accordingly. Among the latest initiatives is a "Features" brand, which is a collaboration with a group of local and Japanese designers. The first item launched is a set of sign language figurines designed by popular artist Eric So. In addition, there is a character design competition, which has received an overwhelming response from local youngsters and which will be judged by famous Japanese designers. "Besides introducing trendy and exciting products, we also want to share pop news with our younger customers, providing them with inspiration," says Mr Yeung. This will be done partly via a monthly newsletter. Another way of getting closer to the customer is the expansion of the home delivery service. The company has made a substantial investment in this and it is now available at over 40 outlets, compared with only five in 2001. The service will be supported by a series of publicity campaigns, including one during the upcoming World Cup in June. "We want to link our products to various types of entertainment, notably through our cooperation with movie companies," Mr Yeung explains. "Therefore, each month we are recommending popular movies and new releases." Localised training With its rapid expansion, KFC's headcount has grown from 2,300 in 2004 to 3,000 at present. Enhanced training and development programmes were introduced in late 2005 and combine localised instruction with information from the company's worldwide training manual. This approach has helped reinforce the service concept and corporate culture. Eight large-scale workshops have been organised for managers, supervisors and frontline staff in the last few months. "We expect every staff member to be very familiar with the operational details and the company's mission, including the way outlets are decorated, since this is all part of our philosophy of providing the best dining experience for consumers," Mr Yeung says. This emphasis on people has been accompanied by a more open and progressive corporate culture. There are now more meetings to exchange information between departments on a fortnightly or monthly basis. These give staff an opportunity to share their views on marketing or operational issues. "The success of our strategic moves has been built on a solid understanding of the company's culture and commitment by employees at all levels," Mr Yeung says. "We encourage managers to adopt new business strategies and use their own initiative. On the whole, the staff appreciate the benefits of the change of direction." Then and now Before Main focus on products and operational efficiency and less focus on the overall dining experience Publicity centred on products and outlets More formal and structured communication After Broader perspective on what the dining experience should include Promotional campaigns based on surveys and market feedback Extra investment in home delivery service Publicity tied to the concept of entertainment Enhanced training in corporate culture and service concepts Open communication between management and all levels of staff Taken from Career Times 12 May 2006 Your comments are welcome at [email protected]