Customers stormed the Kentucky Fried Chicken at the China World Tower in Beijing on Tuesday evening, flipping chairs and tables and refusing to leave after their coupons were denied, the branch’s manager said Wednesday.
The anger stemmed from a national coupon promotion gone awry. It also resulted in KFC scrambling to do damage control after customers were told at counters that the discounts they had printed out from online weren’t valid. Some customers refused to leave without an explanation, believing they had been deceived.
The promotion involved KFC branches across China, but it was abruptly canceled after it began Tuesday morning. Electronic coupons had been sent to the first 100 people who registered for a new “Super Value Tuesday” deal.
In an attempt to address consumer outrage, KFC Wednesday made an apparently vague pledge to honor the half-price coupons that had been downloaded from its official website.
[…]
According to the terms of the promotion, customers with the printed-out or copied e-coupons are entitled to a 50 percent discount if they buy the take-away family-serving Bucket, Chicken Strips, Extra-Tasty Crispy Burger, or Nuggets on particular days. The normal prices for the items range from 11 to 64 yuan ($1.60-$9.30).
According to the original plan, special discount vouchers were to be sold at a mere 0.01 yuan at taobao.com , a popular online auction and shopping website in China, at three intervals - at 10 am, 2 pm and 4 pm - each for a different type of coupon.
I first heard of this story from a coworker. Details were lacking and it was one that piqued my interest. I like to keep one eye on China (the other’s on tumblr) but as you may have heard it can be a challenge to find a variety of views from native sources.
I’ll share some details I’ve heard personally from coworkers (who admittedly may be no more reliable than any other online news source) and wikipedia (please share sources if you have radically different numbers. Numbers interest me. Some of them anyways). And I think some background got lost in translation.
First, from a coworker, I heard that this was happening at KFCs across the nation and this was not just a few isolated incidents.
from the article: KFC has been operating in China since it opened its first restaurant in Beijing in 1987. It has more than 2,100 outlets across 450 cities in the country.
coworker: KFC prevalence in China (in nonrural regions) is similar to that of McDonald’s in Canada (and I’m guessing the States; e.g. three down a street just a couple of blocks apart). KFC is actually more than just fast-food in China. It’s actually considered somewhat of a luxury. And because of the prohibitive costs (see below) it’s actually the type of treat that some (particularly rural) families might indulge in but once a year. So for some of them, it is kind of a big deal (I think the best comparison I can think of is like going to The Keg or something along those lines here). Yeah, they’ll be giving a lot of free chicken away.
Poverty numbers:
From wikipedia:
Poverty in China refers to people whose income is less than a poverty line of $1.25 per day (PPP) set by the World Bank benchmark.
China has been the most rapidly growing economy in the world over the past 25 years. This growth has led to an extraordinary increase in real living standards and to an unprecedented decline in poverty. The World Bank estimates that more than 60% of the population was living under its $1 per day (PPP) poverty line at the beginning of economic reform. That poverty headcount ratio had declined to 10% by 2004, indicating that about 500 million people have been lifted out of poverty in a generation.
From Facts and Details.
There are three degrees of poverty: 1) extreme, or absolute, poverty defined by the World Bank as a household that gets by on less than $1 a day, not enough to support the basic needs of survival; 2) moderate poverty, defined as living on $1 or $2 a day, where basic needs are met but just barely; and 3) relative poverty, as defined by income below a certain level of the national average.
About 13 percent of China’s population—about 203 million people— live on less than $1 a day. About 42 percent of China’s population—about 593 million people— live on less than $2 a day. Most are in the countryside.
Children in textile and garment factories often work 14 hours a day, seven days a week, and sleep by their machines. Boys in Green Mountain City gets paid about 18 cents a load for carrying 55 pound bags of coal up a mountain. Even in the cities, a school teacher with a salary of $50 a month—good by Chinese standards—might have to save for two years to be able to afford a bicycle. Married couples often live apart, sometimes in opposite corners of the country, working at different places. They only time the get to see each other is during holidays, three weeks a year.
I have no sympathy for KFC in this matter.
The second and third rounds of the promotion were set to begin later Tuesday, but the chain ordered the deal stopped when it found that “coupons were already in circulation before the official releases,” according to a statement issued by the company’s headquarters in Shanghai and e-mailed to the Global Times Wednesday.
According to the terms of the promotion, customers with the printed-out or copied e-coupons are entitled to a 50 percent discount if they buy the take-away family-serving Bucket, Chicken Strips, Extra-Tasty Crispy Burger, or Nuggets on particular days. The normal prices for the items range from 11 to 64 yuan ($1.60-$9.30).
According to the original plan, special discount vouchers were to be sold at a mere 0.01 yuan at taobao.com, a popular online auction and shopping website in China, at three intervals - at 10 am, 2 pm and 4 pm - each for a different type of coupon.
So apparently they were going to issue these coupons anyways, but they were released prematurely. It’s 50% off. To provide these folks with a special treat many might only get to enjoy once a year at most otherwise.
KFC is still charging $1.60-$9.30 there, similar to what they`re charging here.
About 42 percent of China’s population—about 593 million people— live on less than $2 a day.
Give them a fucking break. I’m not going to condone the rioting. I’m just saying think of the headaches you could just save yourselves sometimes, corporations. Especially given the significantly greater profit margin they make in the region with the lower costs (if you want me to show specific examples of more relaxed health and safety standards and employee costs which lead to cost savings I will, but I think you’re pretty confident of my claim on this).
I will be trying to update this post should additional details surface.
(Note: I`m hoping you would focus more on the rates of poverty than the rioting of KFCs, though we should work together to eradicate both)