I did a college abroad program to Japan many years ago, and this was one of the funniest culture shocks I had. I was dumbfounded and astonished as my friends told me that's how they celebrated. I didn't know the story behind it until now, but I thought it was one of the most brilliant marketing moves ever.
Me too! I spent Christmas there many years ago, and every person I talked to asked:
1. Are you going back home for Christmas?
2. No? Oh are you going to get a Christmas cake from KFC?
I was like, Christmas cake? And why KFC specifically? My confusion confused them just as much. Maybe they later thought it was because I was Canadian so it must just be an American thing.
The reverse version of this is pretty sobering: Japanese or Chinese person makes it to Canada, and excitedly goes to the nearest KFC or McDonald's, and gets culture shock from how run-down it is. Especially if they're downtown in a big city.
It makes you want to drive them two hours out to a small-town fast-food restaurant to show them that indeed, a clean and tidy KFC/McDonald's does exist somewhere in America.