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Foreign fast-food chains in China going digital to lure customers

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2015-07-16 09:04CRIENGLISH.com Editor: Wang Fan

Foreign fast-food chains in China are joining the digital dining trend as part of the effort to draw more customers and boost slumping sales.

McDonald's, the world's largest fast-food hamburger chain, is providing Shanghai customers with the opportunity to craft their own burgers with touchscreen kiosks.

The "Create Your Taste" campaign was launched by the company at the end of June to let people choose ingredients for their burgers from self-ordering kiosks.

Though the customized meal set is much more expensive than McDonald's usual combo, many customers have been attracted and are giving it a try.

"It's a lot of fun, and you can't get it elsewhere. Here, I can choose from a large number of ingredients and leave out those I don't like. I think it's cool and different."

Elsewhere, KFC has teamed up with Chinese e-commerce giant Alibaba to allow customers in Beijing, Shanghai and the province of Zhejiang to pay for their meals using mobile payment tool Alipay.

Many consumers believe the new service will add convenience to their dining experience at KFC restaurants.

"Sometimes I don't have enough cash with me when I am shopping, so I would ask if a store accepts Alipay mobile payment. Whether a shop accepts it affects my decision as to which shop I will visit, as it is more convenient if it does."

These digital services are viewed by many as the latest move by foreign fast-food chains to prop up sluggish sales in China.

Hao Fangfang, a senior analyst at iResearch, says the change in customer preferences in the fast-food business is a major reason for declining sales.

"The herd behavior was often found in public consumption behavior in the decade starting 2000. But what those born after 1985 or even 1990 pursue is individuality, uniqueness and being different. That's why the once massively popular fast-food chains have been losing ground to those offering niche services like theme restaurants."

She also warns that digital services alone are not enough to help them restore growth.

Other than meeting customers' needs, business decisions and better management are required also.

With more than 130,000 offline businesses across China accepting Alipay mobile payments, going digital is now becoming the major trend in China's retail sectors.

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