McDonald's, Burger King Resist China’s Robot Food Delivery Trend
Hu Junhua | Chen Xiayi | Qiu Zhili
DATE:  Dec 07 2020
/ SOURCE:  Yicai
McDonald's, Burger King Resist China’s Robot Food Delivery Trend McDonald's, Burger King Resist China’s Robot Food Delivery Trend

(Yicai Global) Dec. 7 -- As China’s food companies increasingly turn to delivery robots to get meals and drinks to customers, Western fast-food giants in the country such as McDonald's, Burger King and KFC are not joining in. 

The global fast-food brands do not offer delivery services in China, as most customers take out food, an employee at one of the big three told Yicai Global. 

The robots are also expensive and take up too much kitchen space, the staff member said, adding that to use robots the eateries would need to make changes to the way they operate. Another reason for the limited appeal of robots is that Western food companies have a lot of experience in controlling labor costs.

Yum China's spending on staff climbed 30 percent to about USD1.8 billion in fiscal 2019 from USD1.4 billion in fiscal 2015, while that outlay increased to almost 23 percent of its operating costs from 21.6 percent. Chinese hotpot chain Haidilao spent about CNY8 billion (USD1.2 billion) in the same period, up from CNY1.6 billion, which was 33.7 percent of operating costs, an increase from 30 percent.

By comparison, McDonald’s labor costs fell to USD2.7 billion from USD4.4 billion during the same period, accounting for just 22.5 percent of operating costs, down from 24.1 percent.

In addition, the Western fast-food chains have focused on global expansion through talent cultivation. McDonald's China unveiled its Youth Unlimited talent training program this year. It will invest more than CNY100 million (USD15.3 million) and cooperate with more than 100 vocational colleges to develop an apprentice school.

Editor: Tom Litting

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Keywords:   KFC,McDonald’s,Burger King