e store to open if these levels were not met. The ironic part was that Chinese consumers would accept less then what was required. This would create conflict with the partners. Tony Wang also wondered what KFC would do with the soft currency that the venture would generate, and wondered whether or not there would even be any profits. Wang was faced with three options: 1. Pull out - cut the company losses and avoid negative publicity if the venture failed. This would allow for further research and KFC could try to re-enter in a few years when there was more complete information. 2. Go ahead slowly - taking more time evaluating the situation to make sure the partnerships were secure and the market would accept KFC, however this would invite competitor response. 3. Go ahead full - the market had high potential for success for KFC, and, with 1.1 billion people, large potential for profits. Wang decided to go full ahead. The location was finally found. The central government approved the lease because Wang sold them on the idea that the restaurant would represent a symbol and statement of the People's Republic open policy with the West. The lease was finally approved in April of 1987, however they did not have the building permit, which would allow them to make necessary renovations. They also required hookups for gas, water and heating. Applications were continually lost or just went unanswered. When KFC announced that it would be hiring it was flooded with applications. Management decided to treat all applicants equally. Referrals would not be accepted. This was a unique move in China where family contacts are usually used to land highly sought after jobs. This move created conflict with the partners....
