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Background

KFC is the largest and most successful restaurant brand in China. Launched in 1987, the brand has grown to encompass over 9,000 stores in 1,600 cities.

A steady stream of innovation has kept the brand relevant and engaging, while building direct relationships with hundreds of millions of young Chinese customers in three key ways; Transforming In-Store | Transforming Commerce | Transforming Delivery

Challenge

Like every fast food business, KFC relies on casual footfall. Young consumers hanging out with friends are key audiences who must be constantly recruited.

But by 2022, store traffic was suffering and business performance had declined by 16%. Innovation had helped the brand win with young Chinese consumers. But technologies (and generations) never stand still.

Gen Z have evolved: hanging out with friends is increasingly a virtual experience. 50% agree "I spend more time hanging out with friends in gaming environments than in the real world.".

Many spend more time styling their avatars than themselves. How could KFC thrive in a world where a key consumption occasion was disappearing?

Solution

DENTSU CREATIVE China created a virtual store experience hosted on China's most popular platform for young people, QQ.

Using Unreal Engine 4, the KFC Re:Store combines traditional Chinese craft, cutting edge technology and deep platform understanding.

They designed avatar costumes and merchandise, tailormade furniture, a virtual pet named Fengwan and even its own currency, Chicken Coins - a first for the platform. Users can run virtual businesses and earn Chicken Coin to pay for virtual furniture and other assets.

Users can dance, play, and hang out with friends and a virtual Colonel Sanders (the first non-player character on the platform). Within five weeks, 850M chats with Colonel Sanders took place. 

180M virtual KFC food items have sold in five weeks, but what matters most is turning the virtual store into a real world revenue driver. In a world first for the platform, users can order in the metaverse and have their order delivered in the real world.

This revolutionary borderless commerce approach is in Beta today and will launch to all in July, establishing a new commercial model for brands in the QQ platform.