McDonald's in China | Inside China

Summary

The video script highlights McDonald's iconic presence in China, with nearly 1,000 restaurants serving 4 million customers daily. It symbolizes China's opening to the world and its emerging wealth. The script narrates the story of McDonald's entry into China, the cultural impact it had, and how it adapted by importing its entire business process, including teaching local farmers to grow the right potatoes for its fries. Despite challenges in the US, China remains McDonald's fastest-growing market, with fierce competition and a focus on food safety.

Takeaways

• 🍔 McDonald's golden arches are an iconic symbol in both America and China, becoming a staple of daily life in China.
• 🍟 McDonald's operates nearly 1,000 restaurants in China, serving 4 million Chinese customers daily with the help of 100,000 employees.
• 🏙️ The first McDonald's in China opened over 20 years ago, representing China's openness to the world and connection to Western culture.
• 👨‍🎓 For many Chinese, like Edward Jong, McDonald's represented a modern and fashionable way of life that symbolized Western influence.
• 📉 While McDonald's struggles with health concerns in the US, its business in China is thriving due to the expanding middle class and growing demand.
• 🍗 Competition in China is fierce, particularly with KFC, which has more than twice the number of stores as McDonald's.
• 🚀 McDonald's is expanding rapidly in China, opening five new outlets every week, making it the company's fastest-growing market.
• 🇺🇸 McDonald's imported its entire business process from the US to China, including bringing in the potatoes for its fries initially.
• 🥔 McDonald's taught Chinese farmers how to grow the right kind of potatoes for its signature fries, significantly improving local farming techniques.
• ✔️ Food safety is a top priority for McDonald's in China, ensuring the same quality of fries and other products as in the US and other regions.

Q & A

What is the significance of McDonald's in China according to the script?

McDonald's in China symbolizes the country's opening to the world and its emerging wealth. It represents a connection to America and a modern lifestyle for Chinese people.

How many restaurants does McDonald's have in China?

At the time of the script, McDonald's has nearly 1,000 restaurants in China.

How many Chinese people are served by McDonald's daily?

McDonald's serves 4 million Chinese people every day.

What does the oldest and most famous McDonald's in Beijing represent?

It represents the company's early entry into China and its significance as a symbol of the country's opening up and modernization.

What was the initial reaction of Chinese people to McDonald's when it first arrived?

The initial reaction was one of fascination and excitement, as it was seen as a modern and fashionable Western influence.

Why was McDonald's seen as a symbol of modern life in China?

It was seen as a symbol of modern life because it introduced Chinese people to a new and different lifestyle that was previously closed off to them due to limited global interaction.

How does the script describe the situation of McDonald's in the United States?

The script describes McDonald's in the US as struggling with sales and facing criticism for contributing to the nation's obesity problem.

What is the competition like for McDonald's in China?

The competition is fierce in China, with chief rival KFC having more than twice the number of stores.

How does McDonald's ensure the quality of its fries in China?

McDonald's ensures the quality of its fries by importing the entire business process from America, including teaching local farmers how to grow the right potatoes and replicating the same production process used in the US.

What challenges did McDonald's face when it first started in China?

McDonald's faced challenges such as the absence of suitable potatoes for their fries and the need to teach local farmers new farming techniques to meet their standards.

How does the script highlight the importance of food safety for McDonald's?

The script emphasizes that there are no shortcuts in food safety practices and that McDonald's must adhere to strict standards every single day to ensure the safety of their food.

Outlines

00:00

🍔 McDonald's in China: A Symbol of Modernization and Western Influence

McDonald's has become a significant part of daily life in China, with nearly 1,000 restaurants serving 4 million Chinese people daily. The brand symbolizes China's opening to the world and its emerging wealth. The first McDonald's in Beijing, located near Tiananmen Square and the Forbidden City, was met with great enthusiasm when it opened over 20 years ago. It represented a connection to America and a modern lifestyle for Chinese people who were previously less open to Western influences. The video features an interview with Edward Jong, a Beijing graduate student, who recalls the shock and excitement of experiencing Western-style fast food for the first time. He highlights how McDonald's was seen as a fashionable and modern way of life, influencing not just technology and economy but also lifestyle choices. Despite struggling sales in the US due to health concerns, McDonald's sees China as its fastest-growing market with a growing middle class and fierce competition, particularly with KFC.

05:00

🥔 The Transformation of Potato Farming for McDonald's in China

To meet the demand for its signature fries, McDonald's had to import not just its business process but also the potatoes themselves, as the local varieties were unsuitable. Steve Anderson, a veteran of the potato industry, explains the journey of teaching local farmers how to grow the right potatoes for McDonald's fries. Initially, farmers used rudimentary techniques like rubber hoses for irrigation on small plots. Over the past 20 years, with the help of technical assistance and variety development, the average yield of the farmers has increased threefold, surpassing the national average. The video showcases the sophisticated technology and equipment used in the French fry production process, ensuring consistency and quality. The fries are cut, dewatered, and have defects removed before being cooked, dried, and tested for quality. The emphasis is on achieving the same crispiness and texture that customers would expect from McDonald's fries worldwide. Food safety is also a critical concern for McDonald's, with no shortcuts allowed in their practices.

Keywords

💡Golden Arches

The 'Golden Arches' refer to the signature 'M' logo of McDonald's, which is recognized globally as a symbol of the fast-food chain. In the video, the Golden Arches are mentioned as an iconic symbol in America that has become equally iconic in China, representing the brand's successful expansion and cultural impact. The mention of the Golden Arches sets the stage for discussing McDonald's' role in China beyond just a fast-food provider.

💡Daily Life

The term 'daily life' is used to describe the routine or ordinary activities that people engage in. In the context of the video, McDonald's becoming a part of daily life in China signifies its integration into the culture and the regular consumption habits of the Chinese people. This reflects the brand's acceptance and the influence of Western fast food on local lifestyle.

💡Modern Lifestyle

The concept of a 'modern lifestyle' is introduced to describe the changes in how people live due to advancements and influences from Western culture. In the video, Edward Jong associates McDonald's with a modern lifestyle, indicating that it represents openness to global trends and a departure from traditional Chinese dietary habits. This keyword highlights the cultural significance of McDonald's beyond its food offerings.

💡Opening to the World

The phrase 'opening to the world' is used to describe China's policy of economic liberalization and increased engagement with global markets. The video suggests that McDonald's arrival in China symbolized this opening, as it was seen as a connection to America and a sign of China's emerging wealth. This keyword is crucial for understanding the broader historical and economic context of McDonald's expansion in China.

💡Fierce Competition

The term 'fierce competition' is used to describe the intense rivalry in the market. The video mentions that McDonald's faces strong competition in China, particularly from its chief rival KFC, which has more than twice the number of stores. This keyword illustrates the business challenges that McDonald's encounters in its quest to capture market share in China.

💡Middle Class

The 'middle class' refers to a social group that falls between the working class and the upper class in terms of income and social status. The video highlights the growing middle class in China as a key demographic for McDonald's, indicating the brand's strategy to target this segment for new customers. This keyword is important for understanding the economic dynamics driving consumer behavior in China.

💡Food Safety

The concept of 'food safety' is central to the video's discussion of McDonald's operations in China. It emphasizes the company's commitment to ensuring that its food meets high safety standards, which is crucial given the potential health concerns associated with fast food. The video mentions that there are no shortcuts in food safety practice, indicating the importance of maintaining quality control in every step of the food production process.

💡Importing Business Process

The phrase 'importing business process' refers to the strategy of replicating the operational methods from one country to another. The video explains that McDonald's had to import its entire business process from America to China, including the potatoes for its fries, because the local supply chain was not equipped to meet its needs. This keyword showcases the challenges and solutions associated with global business expansion.

💡Potato Farming Techniques

The term 'potato farming techniques' is used to describe the methods used in cultivating potatoes. The video discusses how McDonald's had to teach local farmers in China how to grow the specific type of potatoes needed for its fries, indicating a transfer of agricultural knowledge and practices. This keyword is significant for understanding the adaptation and local integration efforts made by McDonald's.

💡Food Processing

The term 'food processing' refers to the transformation of agricultural products into food items. In the video, the detailed process of making McDonald's fries is highlighted, from the selection of potatoes to the final product. This keyword is important for illustrating the technical aspects of food production and the standards that McDonald's maintains across different regions.

💡Global Brand

A 'global brand' is a company or product that is recognized and operates internationally. The video positions McDonald's as a global brand that has successfully penetrated the Chinese market, adapting to local tastes and preferences while maintaining its core identity. This keyword is essential for discussing the brand's international strategy and its impact on different cultures.

Highlights

The golden arches of McDonald's are an iconic symbol in America and have become a part of daily life in China.

McDonald's has nearly 1,000 restaurants in China, serving 4 million Chinese people daily.

McDonald's entry into China over 20 years ago coincided with the country's opening to the world and symbolized emerging wealth.

The oldest and most famous McDonald's in Beijing is located near Tiananmen Square and the Forbidden City.

For many Chinese, McDonald's represents a modern lifestyle and a connection to Western culture.

Edward Jong, a Beijing graduate student, recalls the introduction of McDonald's to his town and its impact on local perceptions of modernity.

In China, McDonald's sees millions of new customers as the middle class grows, making it a key market for the company.

Competition in China is fierce, with KFC having more than twice the number of stores compared to McDonald's.

McDonald's had to import the entire business process from America to China, including the potatoes for their fries.

Steve Anderson, a veteran of the potato business, explains the process of supplying McDonald's with its signature fries.

Initial challenges included teaching local farmers how to grow the specific potatoes needed for McDonald's fries.

Farming techniques in China have significantly improved, with local farmers' average yield being three times the national average.

The majority of McDonald's fries sold in China are now made with potatoes grown in the country.

The process of making McDonald's fries involves sophisticated machinery and technology to ensure consistency.

Food safety is a major concern for McDonald's, with no shortcuts allowed in their food safety practices.

McDonald's in China faces the challenge of maintaining the same quality and taste as in North America, Europe, or Australia.

Transcripts

[Music]

the golden arches of McDonald's are an

iconic symbol in America they're just as

iconic in China the fast food chain has

become a part of daily life

[Music]

here McDonald's has nearly 1,00

restaurants here every day 4 million

Chinese are served by one of the company

100,000 employees yet McDonald's has

meant more to China than just

Burgers I'm outside at the oldest and

most famous McDonald's in Beijing it's

in a main shopping district only a

couple of minutes away from tanaman

Square in the Forbidden City the company

entered the country over 20 years ago at

that time China was relatively poor but

when the restaurants opened people

couldn't get enough of them and it

wasn't just because of the french fries

it was because McDonald symbolized the

country's opening to the world as

connection to America and China's

emerging

[Music]

wealth Edward Jong remembers when

McDonald's came to his town of L fong in

northern China the 24-year- old old

Beijing graduate student was in

elementary school at the time Edward hi

good is over here okay so is this a

typical meal that you would have when

you growing up french fries yeah and

hamburgers and Coke so what was it like

for you when you first saw the golden

arches in your town first I don't know

what it is then I heard some of

my you know classmates is some western

style food it's very shocking to say

that you can put some Meats some cheese

into two piece of bread and some chips

we never seen this so what did McDonald

symbolize to you it's a kind of modern

style of life because you know Chinese

people they are not so open to the world

before so when the Western things come

into chines life then people will just

see it very fashionable it's kind of

learning from w people not just

technology not just some economy but

lifestyle so I think McDonald is kind of

Modern Life for Chinese people including

for

[Music]

me China means a lot to McDonald's too

back in the US sales are struggling the

Illinois based company along with the

rest of the fast food industry has come

under pressure criticized for what's

received as food that contributes to the

nation's obesity problem more Americans

are shying away concerned about the

impact on their health in China with a

middle class growing every day McDonald

sees millions of new customers that's

not to say this Market is easy

competition is fierce and chief rival

KFC has more than twice the number of

stores still China is McDonald's fastest

growing Market here five new Outlets

open week in the US less than half that

China is extremely exciting because it's

growing so fast with 1.3 billion people

who want to eat and love McDonald's we

want to leverage that McDonald's had to

bring in more than the golden arches and

Happy Meals before these restaurants

first opened all of this food was New to

China the company couldn't turn to the

local Baker or the local farmer to find

the right ingredients so what McDonald's

decided to do was to import the entire

business process from America Halfway

Around the World here to

[Music]

China it even brought in the potatoes

yeah this is a this is a good crop Steve

Anderson is a 28-year veteran of the

potato business he works for the company

that supplies McDonald's with its

signature fries these are goodlook

potatoes how can you tell they have all

the characteristics you're looking for

good length to width profile uh disease

free nice shallow eyes when McDonald's

first started eyeing China Anderson's

Idaho based employer Simplot had been

working with a fast food giant for

decades so when McDonald's asked Simplot

to make the fries here the company

agreed the first problem the potatoes

used for the fries didn't exist here so

Anderson's predecessors had to teach the

local farmers how to grow the spuds when

you guys were starting with the farmers

what were some of the techniques that

you saw that you thought oh that really

needs to change

well the Growers were small plots and

they just essentially used a rubber hose

to irrigate the potatoes in small um

garden siiz plots and that was what was

what we dealt uh were faced with in 20

years ago have the farming techniques

changed oh oh tremendous changes here in

China our Growers their average yield is

three times the national average so I

think that our technical assistance and

and helping the Growers with variety

development has been a big Key to Our

Success here today the vast major

majority of McDonald's fries sold in

China are made with potatoes grown in

this country in an hour and a half these

would be McDonald's french

[Music]

fries so I never realized how much was

involved in making French rid it is the

same reaction most people have when you

see the amount of equipment the

sophistication of the technology it's

pretty staggering for most

people what are we seeing here potato

strips have been cut and we're

dewatering them and we're running them

across to a a sliver removal to take

care out of pieces that are not uh good

enough to make french fries so all the

machines here you would see in the same

type of Factory in the United States yes

you would why did you want to bring all

of the Machinery from the United States

and replicate that system but we want to

make sure that the french fries that

leave this Factory the Mac fries that we

produce are the exact same as you would

get in North America Europe or

Australia once the fries are free of

defects they're cooked dried then fried

and tested before leaving the French fry

Factory for good what she's doing now is

on those particular strips she's looking

at the external texture so she's taking

each individual strip rolling around and

looking at each corner it's really the

crispiness when your mouth feel when you

eat that

[Music]

fry getting the french fries right isn't

the only thing that McDonald's is

worried about another big concern is

making sure that the food is safe

there's no shortcut in the food safety

practice you have to do it every single

day