as a history of hostility towards Western culture. In February 1987, a license was issued by the city, allowing KFC to operate in Beijing. The Tourist Bureau played an integral role in speeding up the application. Under the license KFC was given a tax remission for two years; profits in three years, four and five would be taxed at 16.5%, with profits thereafter taxed at 33% Wang now had to select a site to open the first location. But no matter where a location was chosen KFC would still require a building permit, as well as hookups for electricity, water, gas, and heating before the store could open. Wang discovered that many of these services were difficult to obtain, and it was not uncommon for applications to not be processed for months. Another concern was the company's need to secure import licenses needed to bring equipment into the country: pressure frying machines, cash registers, blending and cutting equipment for the kitchen. Each item required a separate permit that could take months to attain. During all these negotiations Tony Wang realized that no one had thought to test market the area. It was known that the Chinese liked chicken. From KFC's success in Hong Kong, it was assumed that it would be accepted, but no one had had time to find out for sure and they were forced to cross their fingers. Another problem was finding a reliable supplier of quality potatoes. If they were unable to do this they would have to use mashed potatoes, and Wang did not know how the Chinese would receive this. The largest concern facing Tony Wang was whether or not the Chinese employees could meet the quality, service, and cleanliness requirements. The Chinese employees would have little appreciation for KFC's international standards of cleanliness or product quality. Most domestic organisations lacked any incentive programs, work was seen as something to be avoided, and service was a foreign term. The KFC organization would not allow th...
