Marketing McDonalds in Hong Kong: An Update for the Aughts

McDonalds in Hong Kong: A 2009 Update

Amanda Sperber March 13, 2009

Global Food Cultures: Hong Kong Professor: C. Lum

Research Contact: [email protected]

McDonald’s in Hong Kong Amanda Sperber

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McDonald’s in Hong Kong: A 2009 Update

Amanda Sperber March 13, 2009

Global Food Cultures: Hong Kong Professor: C. Lum

Research Contact: [email protected]

I. Introduction Research Objectives My research objective is to analyze McDonald's current position in Hong Kong's market with the ultimate goal of providing an updated explanation as to what makes this fast food chain so successful. Scholars of McDonald's and the McDonaldization phenomenon offer credible ideas and evidence in examining what McDonald's offers Hong Kong people that have caused the chain to thrive in a place considered the richest of China's culinary regions (Simoons, 1991). Their studies provide the foundation to which my research looks to add and refresh in this growing body of work on the ubiquitous Golden Arches. McDonald’s in the United States My research focuses on McDonald's in Hong Kong, but in studying an iconic American fast food chain in another country it is vital to first examine McDonald's roots in the United States. Before studying the chain’s success abroad it is necessary to look at its achievement at home. Fast Food Nation, by Eric Schlosser (2002), offers a comprehensive history of McDonald's in the States. Schlosser looks at fast food "as both a commodity and a metaphor" and analyzes why McDonald's has gained such a loyal following (p.3). According to the author, the key to a successful franchise is uniformity because customers are drawn to the familiar and predictable. Morgan Spurlock (2005) looks at the proliferation of the fast food culture in the United States and the deals and promotions those restaurants offer (i.e. the opportunity to "super-size" an order) that encourage consumption. Writing for the New York Times, Andrew Martin (2009) looks at the brand’s image and success in the United States’ contemporary culture. Hong Kong’s Food Culture Peter Scholliers (2001) explains the intrinsic linkage of food to national identity, saying "And, let's admit it, we all tend to identify other countries with food" (p. 4). It is important to study Hong Kong's food culture in order to best understand McDonald's in a Chinese context. Author F.T. Cheng (as cited in Simoons, 1991, p. 13) is quoted to have said, "It is (China's) food that stirs the imagination of her thinkers, sharpens the wit of her scholars, enhances the talents of those who work by the hand, and enlivens the spirit of the people."


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The significance of eating food in Chinese society and the central role food plays in every day life cannot be stressed enough. It can be said that the Chinese have a food-centered culture (Simoons, 1991). H.J. Lin and T. Lin (as cited by Simoons, 1991, p.14) add that in China, the joy provided by food is linked to life itself. Ken Hom (1990) explains the Chinese emphasize the freshness of the ingredients and balance of taste when cooking; spices and flavorings including ginger and garlic are used in moderation. The seasoning should be apparent without becoming obtrusive. China has contributed greatly to other cuisines of Asia, especially in Thailand, Korea, Japan and Malaysia Sidney Cheung (2002) notes that Hong Kong people consider food as an important indicator of social standing. Globalization as Related to McDonald’s in Hong Kong This study of the history of McDonald’s in the United States and the role food plays in Chinese culture brings us to a discussion of the impact of globalization as related to the infiltration of American fast food in Hong Kong society. First, consideration must be given to scholarly understandings of the overall topic. Mike Featherstone (1990) points to a trans-societal cultural exchange of goods, people, information, knowledge and ideas which began before inter-state relations. Joseph Nye and Robert Keohane (1972) support Featherstone’s position adding that states aren’t the only actors in world politics and trade, personal contact and communication allow for a good deal of inter-societal discourse without governmental supervision. Frederic Jameson’s suggestion—that globalization has existed as far back as the neolithic trade routes-- are in congruence with the aforementioned authors (1998, p. 54). It should be noted here that Dean Kruckeberg’s (2001) research on advertising and public relations presents similar findings in terms of historical context; advertising has existed in the Middle East since 3000 B.C. when storeowners began hanging signs outside of their shops (p. 189). His belief, that global advertising and public relations can be harnessed to positively impact change and encourage cooperation in “advanced nations” is related the arguments Jan Pieterse (2004) presents, which are mentioned below. Peter Berger (2002) discusses the cultural dimensions of globalization first acknowledging the emergence of a global culture that is strongly influenced by the United States in both its origin and content. Berger believes that regardless of the future of American imperial power there is as yet, no real rival for its influential abilities. In Globalization and Culture Pieterse looks into the debates involved with the subject and presents three different paradigms of cultural differences: first, the problems caused by the clash of cultures, second, the homogenizing process of McDonaldization and finally the mixing and hybridization across people and places Cheung (2002) investigates the social and political changes that have impacted the “adoption and adaption of western foodways and variations of the Chinese diet in Hong Kong” (p. 100). The work provides an overview of the major changes that occurred in Hong Kong after the mid 1940’s that impacted the food culture. Urban development due to economic growth and an altered political environment is said to have effected the cuisine in Hong Kong. The infiltration of fast food around the world is generally connected to beginning of the age of globalization in which we remain entrenched. James Watson and Melissa Caldwell (2005) address this, among other topics, in The Cultural Politics of Food and


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Eating. George Ritzer (2002) defines his term McDonaldization as “the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world” (p. 7). Ritzer believes McDonalds represents more than a restaurant, he thinks of it as emblematic of a way of life that is gradually but aggressively taking over the world. Malcolm Waters (2002) talks about how fast food invades nations quietly and subtly, offering benefits including cheap and hygienic food, new jobs and capital investment. This is aligned with the globalization of a ‘McTopia,” a paradise with cheap food, happy families and a democratic atmosphere (p. 215). Waters also looks at localization and describes it as implying a reflexive reconstruction of community against the homogenous forces of globalization (p.218). Golden Arches East: McDonald’s in East Asia, edited by James Watson (1997), illuminates the ways in which the McDonald’s in Hong Kong localized its food and services to appeal to the population. By discussing the impact the fast food chain has had on the respective regions Watson explains how McDonald's will last in that foreign arena. The chapter McDonalds in Hong Kong: Consumerism, Dietary Change, and the Rise of a Children’s Culture, looks at how the chain initially presented itself as a different dining option to the adventurous, food-loving Cantonese. At the time, McDonald's offered something unique: straightforward, unapologetic, American food. In order to become a staple, the chain eventually worked to alter various food items and menu styles to reflect the culture of the region. This relates to Water’s comments on localization that are noted above. Significant themes in the book shed light on how McDonald's has positioned itself in a specific way to maintain a stronghold in East Asia. One notable strategy is the chain's targeting of children. McDonald's does this in a variety of ways: capitalizing on the recent trend of birthday parties, creating the character of Uncle Ronald as a fun and familiar presence, getting children hooked on the sweet and sour quality of the food and of course, offering toys with the meals. Once a solid fan base has been established, McDonald's then works to make itself attractive to every generation-- for teenagers in Hong Kong, McDonald's is an after school hot spot, a place to snack and gossip, for parents, it’s a place to take the kids for an affordable and fun lunch. The "McDonald's generation" then instills the same traditions into their kids. McDonald's also capitalized on its reputation for cleanliness, and set a new standard for sanitary conditions that other restaurants were forced to meet. Watson notes promises of sanitary bathrooms and a high level of cleanliness are consistently cited as reasons for patronizing McDonald's. Conclusion McDonald’s widespread popularity in Hong Kong begs these overarching questions: How has McDonald's, an American-based company and ultimate symbol of Americana, become a popular restaurant staple in Hong Kong? How have the people of Hong Kong reconciled their deep pride and appreciation for their Cantonese cuisine with their affinity for McDonald's? How has McDonald's managed to ease the transition between the local and traditional eating styles and the more American way? The historical information provided by scholars on McDonald’s and on the evolution of Hong Kong’s cuisine, and the theoretical arguments on globalization and the fast food industry have provided a


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formidable foundation from which I can continue the research on McDonald’s place in Hong Kong culture in 2009, and provide updated information on the questions posed above. II. Findings McDonald’s Appeals to Various Demographics Demographic A: Children No matter the day, time or weather, you cannot visit a McDonald’s in Hong Kong without seeing young children with their parents. McDonald’s appeals to this group by offering an exciting, interactive atmosphere, kid-friendly food, available toys and hosting birthday parties. Starting with its signature colors, red and yellow, the décor in McDonald’s can only be described as energetic and cheerful. At least some of the decorating decisions in each of the restaurants I visited were geared towards Hong Kong’s youngsters. At the trendy McDonald’s in the International Finance Centre mall (IFC), half of the restaurant is dedicated to children. The communal tables are lower to the ground and have cartoons and images of animals, and, much to the enjoyment of the children who utilize this amenity, the brightly colored stools spin round. At another site, upstairs at the McDonald’s on Waterloo and Yim Po Fong Road, a large, painted picture of Uncle Ronald embracing his various friends is prominent on the wall (Appendix II). At many of the McDonald’s including locations in Fo Tan and the IFC, a display of the small toys that come with meals is set up at the entrance of the restaurants. On numerous occasions I noted that as parents walked toward the restaurant with their offspring, the children would spy the toys and (if possible) quickly defect from their parents and run towards them excitedly. Showcasing the toys is one of the many ways McDonald’s employs this tool of highlighting what it offers in a way that immediately attracts kids before they’ve even placed their order (Appendix III). McDonald’s also depicts enticing pictures of the food offered on its menu—which is available both in a paper form and also distinctly on the wall above the cash registers. The large images of French fries, hamburgers and localized meals such as twisty pasta with ham and eggs are hard to miss. For children, these pictures further excite their appetites and allow those who are too young to read to point to the image(s) they want to eat. Some of the menus also have depictions of the toys available with the meals, reminding children to select a complete meal so they can have a toy. At many site visits I noticed children pointing to the pictures of the food and toys while they waited online with their parents to place their order. In terms of the taste of the food itself, Michael Hui, who is the Pro-Vice-Chancellor and Professor of Marketing at Chinese University of Hong Kong (CUHK), noted that children’s tastes could be trained (personal communication, January 16, 2009). When introduced to McDonald’s later in life adults may be “die hard Chinese good fans,” but when McDonald’s becomes part of a children’s routine at a young age they become programmed to like the taste, and then are lifelong fans. Many children have their birthday parties at McDonald’s. In Tsimshatsui (TST) I spoke to Aki, an Assistant Manager who said a major focus of her job was to promote


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and organize birthday celebrations (personal communication, January 10, 2009). On a Sunday in Shau Ting, I spoke to another Assistant Manager named Joyce who proudly said the branch hosted approximately ten birthday parties per month (personal communication, January 11, 2009). In Shau Ting I was able to observe a party from start to finish. A separate room within the restaurant was set off just for the celebrations. It appears there is a standard set up for tables, chairs and balloons as the room was not altered from the party I saw conclude at 12:30 PM to the party I saw begin at 1:00 PM. Also notable is the small, cheerful clock near the room, which stated the hours the celebrations were booked. The party I observed began exactly at 1:00 PM and ended at 2:30 PM. Between 1 and 3 Crew members and 1 and 3 Assistant Managers- all female- were on call throughout the entire affair, leaving the parents and family members to relax, snap photos, enjoy the food and watch the happy youngsters. Approximately 15 children were in attendance, a smiling staff member greeted each child and parents at the party door, giving each little attendee a crown and directing them toward the fun. A large card with images of McDonald’s characters was available on a side table for the children to sign. Throughout the party there was a small contingent of the group stood around the table pointing and laughing at the images on the card, clearly excited by what they saw. As stated earlier, the McDonald’s staff handled every detail of the party. They handed out menus and served lunch. After lunch a member of the Crew lead the kids in a variety of games while the parents watched, smiling contentedly. The climax of the event occurred when the group leader helped the attendees play a game that looked and sounded like “Simon Says” but instead of using “Simon” (or a Hong Kong equivalent) it seemed they were playing “Ronald Says.” The staff leading the game told the kids to cover their eyes, at which point another staff dimmed the lights in the celebration room, and two others wheeled in a large birthday cake, sparkling with candles. The kids brought their hands away from their eyes and emitted a collective shriek of awe and glee. After cake and some more games, the party left and the staff cleaned up. As far as I could tell McDonald’s had supplied the decorations, card, food and cake, making the event much less stressful for parents. Speaking to young adults at CUHK stressed the impact McDonald’s has on Hong Kong’s children. Many of the students I spoke to began talking about their memories of McDonald’s as a child, smiling when they mentioned the toys, family lunches and birthday parties. Andrew Wu, one of the students with whom I spoke, discussed how even though he “hated the corporation” because as he’d grown he learned that “they pay their workers nothing” and that obesity was becoming a problem in Hong Kong, he couldn’t help how much liked the food because he’d grown up with the taste (personal communication, January 16, 2009). When asked what made McDonald’s unique Andrea, another university responded, “Because it’s in my heart for many years, from when I was small, it’s a kind of memory” (personal communication, January 16, 2009). Demographic B: Students In Hong Kong, McDonald’s also welcomes students. Andrea said for students McDonald’s is “a place to chat.” Andrew added that at McDonald’s, “no one will make you leave.” He also stressed the significance of the space it offered noting, “libraries get crowded.” I visited the branch on Waterloo and Yim Po Fong Road, located right near a


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school, at various times of day. I went before the school day started, right after it ended, and then in the evening homework hours, and each time the restaurant was bustling with studious teens. At 7:20 AM on a Friday morning I watched one boy who looked to be in his early teens, focused intently with a workbook and calculator, after awhile another fellow, uniform on, backpack full, arrived and sat across from him at the table and immediately got to work (Appendix IV). It took some minutes for the two to greet one another, though the availability of empty tables near by gave the decided impression they knew each other and had chosen to sit together. This very casual interaction made it clear that this morning work meeting was routine, the two boys left about 30 minutes later together. That same morning I observed a young girl arrive and meet up with a laughing group of friends, I noticed a female who looked to be in her late teens sitting without food and working intently, she left before I and had no food wrappers or empty cups at the table. I saw groups sharing breakfast, hanging out before leaving for class. McDonald’s makes students feel so comfortable they don’t even need to order food to feel at ease working. The restaurant was busy but not frenetic—a place to work or to meet up with friends, have a quick breakfast and walk to school. A similar atmosphere is apparent after school, though at that point the environment is more relaxed. Students have come to have a snack, catch up and talk about the day. They arrived alone and met up with friends, or entered in groups. Many ordered full meals, but another common trend was to order French fries, pour them onto a tray and split them with a group. At about 5:00 PM in the IFC I watched a uniformed girl sit and have a leisurely sandwich, she prayed before starting her meal, and appeared to be fine with eating and relaxing alone. On another day at around the same time back at the McDonald’s on Waterloo Road I observed a couple canoodling over their texts books. If McDonald’s is certainly a place for friends-kids came in groups to laugh or in pairs to talk more intimately- it’s also definitely a place for young couples. At every time of day, early morning, mid-afternoon or evening I saw boys and girls holding hands, gazing adoringly and hugging at the restaurant. It should be noted that I observed many more couples over the weekdays than on the weekends. I did not see many young couples at Fo Tan, Shau Ting or TST—the branches I frequented the most on weekends. Demographic C: Parents It should be no surprise, with McDonald’s appeal to children, that there are aspects of the chain that speak to parents as well. One of the major factors that adds to its popularity among parents is that kids are happy eating there, children want to go to McDonald’s and since McDonald’s offers a family friendly atmosphere, parents don’t feel rushed taking their happy kids out to a lunch and sitting for a bit. On a Sunday afternoon in Shau Ting the restaurant was buzzing with families, I saw one long table with grandparents, parents and a large group of children. In Fo Tan I noted various combinations of parents and kids including a father watching his daughter drink a vanilla milkshake and eat a hamburger, a mother with her small son, and a mother and father with their son and daughter. In Hong Kong the restaurants are incredibly well organized. In many of the larger branches I visited, including in TST, IFC, Shau Ting and a large mall in Kowloon, there were many Crew members and Assistant Managers on hand. At all these busy


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locations there was an Assistant Manager standing at the front acting as a greeter and at least two members of the Crew walking around with brooms, keeping things very clean. Some of the smaller restaurants I went to had less staff on hand, but no site I went to was in any way understaffed. With the organized environment, parents can feel safe bringing their small kids to a busy restaurant. No matter the size of the branch or the crowd, I was never overwhelmed entering a McDonald’s in Hong Kong. Besides the French fries and McWings, the Hong Kong McDonald’s menu also promotes a limited selection of healthier options, and it appeared the availability of this more nutritious fare made parents feel better about taking their children to the restaurant. At many of the McDonald’s I visited the side of fresh corn was markedly displayed. In Fo Tan, TST and many other locations I noticed parents encouraging their children to finish their corn with their meal. Walking through a McDonald’s in Hong Kong, most of the tables with parents and young kids eating featured a corn cup per child (Appendix V). Many of the McDonald’s in Hong Kong also have a McCafé that caters to adults. The McCafe offers coffee and espresso drinks, tea, pastries and sandwiches. It also includes table service. At a McCafé in Kowloon I had a pot of Earl Grey tea served straight to my table, at another when I ordered a muffin the waiter offered to warm it up before bringing it to my table with a latte. The service and amenities at the McCafé are more sophisticated and allow for relaxation. At some of the McCafés where I did research, I noticed parents sitting with their children in the café section of the restaurant—the kids had their standard McDonald’s lunch, and the parents had coffee. Eric Lam, a Marketing Director for Starbucks in Hong Kong cited McCafé as one of their main competitors (personal communication, January 15, 2009). Demographic D: Senior Citizens Though not as popular as with the other demographics mentioned, McDonald’s also attracts senior citizens. At various times of day, and particularly in the early morning and through lunchtime, I noticed elderly men and women, sitting alone or together and reading the paper. The majority of the McDonald’s I visited also had a selection of magazines available. I spoke with Annisa Lee, an Assistant Professor at the School of Journalism and Communication at CUHK who pointed out that all the restaurants plays ambient pop music and are air conditioned in the summer, making it a comfortable place to spend a hot morning (personal communication, January 16, 2009). Andrew also talked about how McDonald’s offered promotions to senior citizens, giving them a card that allowed them to obtain discounts (personal communication, January 16, 2009). Again, McDonald’s is a family place. On weekends, I often saw grandparents with their grandchildren, or even with their children and grandkids at large family lunches. McDonald’s is Predictable, Spacious and Available Veronica Mak, a former advertiser who is now studying anthropology said, “McDonald’s is like a friend that is easily approachable” (personal communication, January 16, 2009). Gilbert Po, the Creative Director of Creative Dioxide, a regional marketing firm said, “McDonald’s is like home” (personal communication, January 16, 2009). Many of the Hong Kong people I interviewed cited consistency as part of the menu and the atmosphere as one of the key traits they thought made McDonald’s successful in the area. Professor Sam Powpaka, a Marketing Professor at CUHK noted,


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“McDonald’s raised brand awareness, and with its consistent quality it has built momentum” (personal communication, January 14, 2009). In terms of fast food, Powpaka thought McDonald’s was “number one in the brain.” According to the Professor, at each of McDonald’s many locations, patrons got exactly what they expected, and he cited that as a major reason for the brand’s loyal following. My interview with Professor Hui further added to this finding, Hui said, “Hong Kong is fast paced, and McDonald’s is reliable.” For adults, he felt the brand offered “convenience and reliability.” A majority of the Hong Kong people with whom I spoke, including Professor Hui, noted that as compared to cha chaan teng establishments—a type of Chinese type restaurant popular in Hong Kong-McDonald’s were more reliable in terms of menu and atmosphere. Most of the cha chaan teng restaurants I visited were not chains, and though the menus followed a general theme, they were varied, as was the taste, quality of the food and service. Many of my interviewees felt that in a busy, productive place like Hong Kong, Mcdonald’s provided a sense of order and routine. In addition, according to many of my subjects, McDonald’s is much for spacious than average cha chaan teng. Andrew said a student would never do homework in a cha chaan teng, saying they were “too crowded” and that students would not feel comfortable sitting with their books for long periods of time, as the turnover rate in those shops is generally quick. Other students I spoke with, including Andrea and Veronica, both described the restaurant as a safe haven where people had the space to study, read, chat or eat and didn’t have to worry about being expected to leave when they were done with their food. It was emphasized that in a crowded place, the space to work and talk was greatly appreciated. Professor Lee stressed that the space and the air conditioning made McDonald’s a haven in a bustling city. In Hong Kong, McDonald’s are everywhere. Professor Powpaka asserted his belief that one of the reasons for McDonald’s success was the sheer availability of the restaurant. As stated above, He felt that when you see those Golden Arches everywhere they become fixed in your thoughts and then become the go-to place for a meal. He added, “Everywhere you see a Burger King or a KFC, you see a McDonald’s.” Andrea said she felt McDonald’s was part of Hong Kong’s “landscape” (personal communication, January 16, 2009). McDonald’s as a Place to Conduct Business All of qualities in the above section also make McDonald’s an ideal place for working men and women to conduct meetings, check their Blackberries while drinking coffee or chat after a day of work. I was struck by how many men in suits I saw in the McDonald’s in the IFC. These men weren’t just picking up lunch, however, I noticed a number of tables with these suited fellows sitting with food or drinks and going over documents, and talking seriously. Even on a Sunday in Fo Tan, I watched as one middle-aged man ordered his lunch to go and put it in his cloth USB bag, he then sat in the restaurant and talked animatedly on his Bluetooth for about 10 minutes, before leaving with his food. According to Professor Hui, generally the McDonald’s with the McCafe’s are those that attract the more corporate, working types. Indeed, Hui himself had attended a number of work-related talks at both McDonald’s and McCafe’s (personal communication, January 16, 2009).


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Affordability Though many of the subjects I interviewed considered the chain to be inexpensive if not cheap, money was not generally listed as a main reason to eat at McDonald’s. No one thought it was an expensive restaurant, but consistency, space and availability seemed to be a greater draw than price. That said, when asked why patrons would go to McDonald’s instead of buying another type of fast food, Andrea enthusiastically said, “Because McDonald’s is the cheapest everywhere!” Professor Lee thought McDonald’s has a reputation for being affordable but that the McCafe was considered more expensive. She said she the elderly generally didn’t think the food was worth the price, but that they liked to take their grandchildren. Professor Hui felt Hong Kong people were familiar with McDonald’s promotions, and that many of their ad campaigns reminded the population about their prices and deals. Po said McDonald’s was part of a category known in the advertising world as “Fast Moving Consumer Goods” (FMCG). According to Po, FMCG’s require a lot of regularly advertised promotions or else the audience will forget, as FMCG’s are low-involvement items. He thought McDonald’s was “aggressive” in its campaign promotions. He said the Burger King in Hong Kong was “two times” more expensive than McDonald’s (personal communication, January 16, 2009). At all my research sites the McDonald’s menu proudly displayed the restaurant’s prices leaving me to assume the brand considered the amount charged for the food should in no way deter customers. Localization of the Menu The chain offered an array of items specific to Hong Kong people that would not be available to patrons in the United States. Some of these include: McWings, the Fresh Corn Cup, the Twisty Pasta with Ham and Cheese, the ‘Big ‘N’ Tasty,’ and Red Bean Pie (Appendix VI). At many locations I visited, including the branch in TST and on Waterloo Road, the more localized options were the most visible ones on the menu. In TST a large standing poster of the Twisty Pasta and Red Bean Pie greeted customers at the steps leading down to the restaurant. At breakfast I noticed a lot of the people eating the Twisty Pasta. Professor Hui ‘s beliefs were in congruence with my observations, that people especially liked the local products. Professor Lee felt McDonald’s did a good job localizing their cuisine. She said McDonald’s seemed to understand “ a lot of the Oriental ways of cooking meat.” She felt the brand used a sufficient amount of Chinese ingredients including chili, marinated pork, and she appreciated that they offered a stir-fry option. That said, many of the Hong Kong people I interviewed felt that McDonald’s food was generally Western in taste. The general consensus was because Hong Kong had been colonized by the British and was so heavily influenced by the West, the people had, according to Professor Powpaka, “acquired Western taste long ago,” and because of this “double culture” of East and West, McDonald’s foods were readily accepted. While Professor Lee appreciated the chain’s efforts to localize their menu, she also said, it takes something different “to be successful in Hong Kong” as opposed to “the PRC” (People’s Republic of China). She felt Hong Kong “has been very globalized” and it was not as necessary for McDonald’s to localize the food, in the PRC, however, Lee felt the menu had to be specific to the area. The Professor went on to say, “Hong Kong culture is like a


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melting pot,” taking “some from the Chinese and a lot from the British.” According to Lee, “McDonald’s goes deep into the culture of Hong Kong” because it “tries very hard to fuse the East and West together.” McDonald’s Image The way Hong Kong people perceive McDonald’s in many ways agrees with Professor Lee’s above comment regarding the restaurants attempts to fuse Eastern and Western cultures. Those I interviewed understood McDonald’s as a place that was of both the United States and Hong Kong. According to Andrew, McDonald’s “does not symbolize the United States, it’s local.” He said people, “don’t think about the United States in McDonald’s.” He felt McDonald’s was just a “normal” place. Andrea felt Burger King was associated with the States, but McDonald’s was not (personal communication, January, 16, 2009). Veronica saw McDonald’s as an overall global brand, one not specific to the United States or to Hong Kong. She did say she felt McDonald’s was more part of the West, but she didn’t think people went there because it was American or Western. No one I interviewed considered McDonald’s to be an exotic or exciting place to eat; moreover, Veronica didn’t think people went to the restaurant because of an idealized, fictionalized vision of America. She thought if Hong Kong people did have a quixotic view of the United States, that idea was more readily applied to Hollywood or to the election of President Barack Obama, not to their visits to McDonald’s (personal communication, January 16, 2009). Professor Lee said McDonald’s advertisements were culturally relevant and localized; she felt the restaurant as a whole didn’t need to overly cater to Hong Kong people because the region was already so influenced by the British. She showed me a commercial that had aired in time for the Chinese New Year. It depicted a young boy and his father fishing, after catching the fish it turned into a McDonald’s toy. The color red was a major background theme. Lee explained that fish represented luck, and that the color red represented the New Year, she said the commercial made viewers associate good luck with McDonald’s. Gilbert Po also said McDonald’s ads were targeted towards Hong Kong people. He said they used “grassroot celebrity endorsements,” explaining that the celebrities McDonald’s employed to promote the brand were those who Hong Kong people “considered part of their lives.” He said this also added to the association of McDonald’s with “home” (personal communication, January 16, 2009). The general consensus was McDonald’s was a Western restaurant that Hong Kong people regularly visited. While McDonald’s is not seen as unique or exotic, but the brand isn’t fooling the population into thinking it’s organically Chinese. Additionally, McDonald’s successfully cultivated another image for the brand, the restaurant is generally understood as a clean, family-friendly place. As Andrew says McDonald’s promotes “happiness.” One of the ways it seems the chain created this collective association was by encouraging students to feel comfortable studying there and for families to feel at ease having a relaxed meal at the branch. When I spoke to Andrea about some of the negative press surrounding McDonald’s in the States she said, “there is not a bad image of McDonald’s here.” One of the reasons she cited for the positive perception of the brand was because it’s a place students frequent. More than a brand associated with the East or West, Professor Lee said McDonald’s was known as a family place. That McDonald’s is a haven for a variety of generations is clear, and by making


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itself an enclave for work and family time, the brand has benefitted enormously. Po felt that McDonald’s had “done a lot for the community” and spoke of donations to community charities, programs for children and the elderly. He wasn’t very specific when he spoke about these positive activities, but he was able to name overall services the brand had provided (personal communication, January 16, 2009). Professor Lee said the Ronald McDonald House is a popular charity and that “everyone chips in to help out the cause.” Indeed, the small house used to collect change for the charity was stuffed to the brim at every location I visited. Professor Powpaka addressed some of the potential image problems McDonald’s could have when he said, “Educated people know McDonald’s is bad for you” but because it’s known as a family place and so many children love the restaurant, parents like taking their kids there (personal communication, January 16, 2009). Andrew also said there was a contingent of people who worried about the increasing problem of obesity in children. He spoke about a study conducted by the Hong Kong Consumer Department on childhood nutrition which had publicized many of the problems caused by restaurants including McDonald’s; Andrew said citizens weren’t generally concerned about the Department’s findings because they liked McDonald’s cheerful, fashionable imagery and the famous toys (personal communication, January 16, 2009). Problems the Brand Faces in Hong Kong One of the major problems McDonald’s faces is dinner. The restaurant is bustling in the early morning with students and people going to work, in the mid-morning with senior citizens reading and parents and grandparents with their children and grandchildren, in the afternoon with the lunch and afterschool crowd and then in the late evening with students doing homework and meeting friends. At dinnertime, however, the crowd tends to slow. Veronica agreed with my observation and said dinnertime was probably a problem for the establishment because in Hong Kong it is important for families to have their evening meal together (personal communication, January 16, 2009). Another problem Professor Lee anticipated the brand encountering is the increasing popularity of ads promoting diets and other slimming mechanisms. She said there was a cultural shift of people becoming more interested in dieting and working out and she felt as the trend grew adults would be less inclined to consume McDonald’s food (personal communication, January 16, 2009). Similarly, Professor Hui noted that McDonald’s image was “generally unhealthy.” He felt people just went there for a quick lunch and that the convenience and availability of the chain made it difficult to resist (personal communication, January 16, 2009). If the information about the negative effects of fast food becomes more and more impressed on the public conscious, it may one day override the appeal of a fast and convenient meal. III. Summary Analysis of Findings My research in the field conducted through first hand observations and interviews has enabled me to further the admirable scholarship already in place regarding McDonald’s achievement in Hong Kong. The overarching questions I addressed in this study looked at how this Western brand became a local favorite in Hong Kong, a place


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rich in culinary tradition. In addition, I wanted to examine how McDonald’s has engaged Hong Kong people, transmuting their local, conventional eating styles to a different, American way. My findings indicate that McDonald’s popularity can be attributed to the space, convenience and reliability the chain offers. Moreover, the research shows that because Hong Kong was colonized by the British and is heavily influenced by their European culture, Hong Kong people are more receptive to Western food. In Golden Arches East, Watson examined the brand’s roll out in Hong Kong and accredited its initial success to McDonald’s honest, American fare that at the time seemed unique and appealed to the adventurous, food-loving Hong Kong people. After establishing itself, McDonald’s gradually introduced more localized options on the menu to give it lasting appeal. While it seems McDonald’s menu played a role in exciting Hong Kong people and gaining it attention, today the McDonald’s crowd is loyal to the restaurant because it offers predictability, space and availability. Hong Kong is busy, fast-paced and crowded. Everyone I spoke with and interviewed made it clear that one of the main reasons McDonald’s was an attractive option was because the restaurant was spacious, convenient, familiar and welcoming. In a bustling city with lots of options, that sense of routine cannot be undermined. Walking into McDonald’s the décor follows a standard theme and the menu stays the same. Quiet pop music plays, and looking around you see people reading, eating and talking. At McDonald’s students, families and individuals looking to relax or work know they won’t be rushed. In addition, because Hong Kong moves at a rapid pace, people in a hurry who want a quick meal know what to expect when they order from McDonald’s. Professor Hui said he liked eating at McDonald’s because when he’s busy, he knows the service will be fast and he knows what to expect from the food (personal communication, January 16, 2009). As mentioned earlier, though there are traditional cha chaan teng establishments that also offer a fast, affordable meal, these places are usually not chains, and because of that customers don’t know what to expect from the food or service when they are on the go. Professor Powpaka is certain McDonald’s had greatly influenced Hong Kong food culture, inspiring other chains that offer fast service and affordable food, but as he stated above, because McDonald’s infiltrated the region first, and had the funds and popularity to keep opening new franchises, it remained the go-to fast food restaurant for Hong Kong people (personal communication, January 16, 2009). Hong Kong is a place rich in culinary tradition but it’s also an efficient business capital. It is in the necessities the latter engenders-a need for a break from the hustle and bustle, or for a quick meal- that McDonald’s has found its niche. Because of the above qualities emphasized, McDonald’s is a place a variety of demographics can utilize. The research I conducted agrees with Watson’s findings that McDonald’s can be incorporated into every generation’s lifestyle. One of the major reasons for McDonald’s success is that children, excited by the colorful décor and toys, become acclimated to the taste of the food and create memories of family lunches and birthday parties. As they grow the restaurant is a place to go study, eat with a boy or girlfriend, have a business meeting or one day, take family. As Andrea said above, McDonald’s holds a special place in her heart because of the memories she has there (personal communication, January 16, 2009). The space, comfort, convenience and availability McDonald’s offers makes having these moments and creating these memories


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possible. Another point emphasized throughout my time in Hong Kong is the British influence in the region. In addition to this colonial influence, Hong Kong is one of the financial capitals of the world and because of that many cultures are constantly penetrating its surface. According to the majority of my interviewees these factors have caused Hong Kong people to be generally accustomed to Western style food and open to trying new options. This gave McDonald’s easy entrée into Hong Kong and has also helped give the brand lasting power. Professor Lee noted that Hong Kong is a melting pot, a place where the East and West meet. With its standard American fare and more localized products McDonald’s presents itself as a global brand that originated in the West but also caters to its specific clientele in Hong Kong. Through my research I found that Hong Kong people don’t perceive McDonald’s as a local shop, rather they consider it a global brand. They aren’t fazed by its Western origin because much of the region has been impacted by other cultures. My research agrees with much of the previous studies in that it is clear from my observations that McDonald’s has a lasting effect on Hong Kong because it is an applicable place for many generations. However, since it’s been in Hong Kong, customers now go to McDonald’s because of the amenities it offers to these various demographics, not because the population is excited by an exotic Western restaurant or deceived into thinking McDonald’s is native to Hong Kong. IV. Conclusion The key findings my research shows are that the amenities McDonald’s offers to Hong Kong people: convenience, space and availability are what appeal to the restaurant’s patrons. These benefits have engendered the important factor that gives the brand its lasting power, that the space can be used by people of any age. Hong Kong people are not attracted to McDonald’s because of the food, the space serves a larger purpose to the population. In addition to the restaurant’s expedient quality, memories are created at McDonald’s as the restaurant is used for varying activities as the population ages. In the Introduction above, Schlosser (2002) was cited because of his finding that the success of McDonald’s lay in the uniform nature of the chain. Schlosser said customers are drawn to what is predictable. After walking around for hours, busy doing research and site seeing I too found myself relieved to enter a McDonald’s, appreciating the familiarity, space and simplicity inherent to the brand. One of the weaknesses in my study is that it doesn’t employ many research methods. The research I did relies solely on hours of observation and intensive interviews. The study could have been greatly improved upon if a surveys for Hong Kong people of various ages had been conducted, this would have provided a deeper understanding of McDonald’s position in the culture. Another area where my research falls short is because of the rules and contractual agreements by which McDonald’s employees must abide, I was unable to have in depth conversations with the people who work for the brand. Thus I was unable to get an inside understanding of the chain’s advertising and marketing strategies.


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If I could do this research again, I would allow myself the great amount of prep time necessary and make a valiant attempt to infiltrate McDonald’s corporate ranks. I think this study would really benefit from talks with employees who work both as Crew and Assistant Managers, and those who make executive decisions. I would also recommend that researchers in the future learn to speak basic Cantonese. This would allow them to talk to Hong Kong people while they eat at McDonald’s. My interviews are limited to English-speaking residents.


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Appendix I. Methodology To gather data I did intensive research on the already existing scholarship on the subject, spent hours observing various McDonald’s around Hong Kong and conducted interviews. To study the scholarship already in place on the subject I first read books and articles that dealt with McDonald’s success as a corporation in the United States. I then looked at Hong Kong food culture, reading about how scholars see the history of their food culture and how it is viewed today. From there, I looked that the concept of globalization. I first studied its overall definition, and then I examined various respected opinions on the subject. I then read about globalization as related to Hong Kong. Finally, I did intensive work with the studies already in place on McDonald’s as a globalizing force and on the brand’s position in Hong Kong. Doing my preliminary reading like this gave me a comprehensive understanding on the various topics related to my study and provided me with a solid foundation from which to do my field work in Hong Kong. To update the research on McDonald’s in Hong Kong, I began by spending time in restaurant sites all over the area. This enabled me to see if my observations confirmed the studies already in place, and also to see if any different trends existed. I made sure to spend time in McDonald’s at various times of day, from the early morning to the night. I also made sure I visited McDonald’s in a wide variety of locations so that I could examine how the restaurant stood in both urban and more suburban settings. Because of the language barrier (I don’t speak Cantonese or Mandarin) I was only able to interview Hong Kong resident who I knew spoke English. After some extensive searches on the web, and sending out dozens of emails, I was put in touch with the appropriate people. I spoke to Marketing and Communications Professors at CUHK in order to get a critical perspective on the brand’s positioning in the region. I was also put in touch with a lot of university students at CUHK through Andrew Wu, an anthropology student who helpfully acted as a liaison and introduced me to a number of insightful students who offered their perspectives on the brand.


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Appendix II. Framed picture of Uncle Ronald and friends as seen in the McDonald’s on Waterloo and Yim Po Fong Road. Photo taken on January 8, 2009.


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Appendix III. A McDonald’s Crew Member organizes the branch’s display of toys. Photo taken at a McDonald’s in Fo Tan on January 11, 2009.


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Appendix IV. At the McDonald’s on Waterloo and Yim Po Fong Road, 2 boys study and prepare for the school day. Photo taken on January 9, 2009.


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Appendix V. A family enjoys a Saturday lunch at the McDonald’s in TST. Note the parents are enjoying coffee from the McCafe, and the girl is eating the Fresh Corn Cup. Photo taken on January 10, 2009.


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Appendix VI. Grilled Pork Twisty Pasta is another item on the menu that has been adjusted to fit local tastes. Photo on taken January 10, 2009.


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Works Cited Berger, Peter L. (2002). Introduction: The Cultural Dynamics of Globalization. In P.L. Berger & S.P. Huntington (Eds.), Many Globalizations: Cultural Diversity in the Contemporary World (pp. 1-16). New York, NY: Oxford University Press. Caldwell, Melissa L., & Watson, James L. (Eds.). (2005). The Cultural Politics of Food and Eating. Malden, MA: Blackwell Publishing.

Cheung, Sidney. (2002). Food and Cuisine in a Changing Society. In S. Cheung & D. Y.H. Wu (Eds.), The globalization of Chinese food (pp. 100-112). Honolulu, HI: University of Hawaii Press.

Featherstone, Mike. (Ed.). (1990). Global Culture. London: Sage.

Hom, Ken. (1990). Taste of China. New York, NY: Simon and Schuster.

Jameson, Frederick. (1998). Notes on Globalization as a Philosophical Issue. In F. Jameson & M. Miyoshi (Eds.), The Cultures of Globalization (pp. 54-77). Durham, NC: Duke University Press.

Keohane, Robert O., & Nye, Joseph S. Jr. (Eds.). (1972). Transnational Relations and World Politics. Cambridge, MA: Harvard University Press.

Kruckeberg, Dean. (2001). Global Advertising and Public Relations. In Y.R. Kamalipour (Ed.), Global Communication (pp. 188-204). Belmont, CA: Wadsworth.

Martin, Andrew. (2009, January 11). The Happiest Meal: Hot Profits. New York Times, pp. BU1 & 8.

Pieterse, Jan N. (2004). Globalization and Culture. Lanham, MD: Rowan & Littlefield

Ritzer, George. (2002). McDonaldization: The Reader. Thousand Oaks, CA: Pine Forge Press.

Schlosser, Eric. (2002). Fast Food Nation. New York, NY: HarperCollins Publishers.

Scholliers, Peter. (2001). Food, Drink and Identity. New York, NY: Berg.

Simoons, Frederick J. (1991). Food in China: A Cultural and Historical Inquiry. Boca Raton, FL: CRC Press.

Spurlock, Morgan. (2005). Don’t Eat This Book: Fast Food and the Supersizing of America. New York, NY: Penguin Group.

Waters, Malcom. (2002). McDonaldization and the Global Culture of Consumption. In G. Ritzer, McDonaldization: The Reader (pp. 213-220). Thousand Oaks, CA: Pine Forge Press.


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Watson, James L. (1997). McDonald’s in Hong Kong: Consumerism, Dietary Change, and the Rise of a Children’s Culture. In J. L. Watson (Ed.), Golden Arches East: McDonald’s in East Asia (pp. 77-109). Stanford, CA: Stanford University Press.

Watson, James L. (Ed.). (1997). Golden Arches East: McDonald’s in East Asia. Stanford, CA: Stanford University Press.

Marketing McDonalds in Hong Kong: An Update for the Aughts

Documents

fast food culture

chinas food

hong kong people

hong kong professor

hong kong society

fast food nation

scholars of mcdonalds

global food cultures