SHANGHAI — Yum China Holdings Inc. is celebrating the opening of KFC China’s 10,000th retailer, marking a big milestone in KFC China’s 36-year progress journey within the nation.
Located in Hangzhou, KFC China’s 10,000th retailer is situated on the banks of the Beijing-Hangzhou Grand Canal, a traditionally necessary hyperlink connecting northern and southern China. Since opening its first retailer in Beijing in 1987, KFC has grown into the nation’s largest QSR model when it comes to system gross sales. This progress has been underpinned by a world-class in-house provide chain administration system developed over three many years.
“As the primary western QSR restaurant model in China to achieve this unimaginable milestone, KFC China’s 10,000th retailer opening is a proud second for all of us, demonstrating the model’s deep bond with Chinese language customers throughout generations for over 36 years,” stated Joey Wat, CEO of Yum China. “Strategically positioned for sustained progress, KFC China stands to profit from its massive and quickly increasing retailer community, substantial economies of scale and entry to a good broader buyer base. Presently serving simply one-third of China’s inhabitants, our objective is for KFC China to achieve over half by 2026. By leveraging our stable basis of success and great untapped potential for future progress, we’re assured that KFC China will proceed to be China’s main restaurant model for a few years to return.”
“In pursuit of our bold progress targets, we’re dedicated to establishing KFC China as the popular day by day selection for an more and more various buyer base,” stated Warton Wang, basic supervisor of KFC China. “KFC China stays on the forefront of pioneering new codecs and groundbreaking ideas to speed up retailer growth into untapped cities, whereas additionally staying forward of evolving client preferences and rising consumption tendencies. Going ahead, KFC China will proceed to supply a various array of modern meal decisions throughout worth ranges, guaranteeing that buyers can get pleasure from KFC anytime and anyplace.”
Regardless of having already established an intensive presence in additional than 1,900 cities as of the tip of Q3 2023, KFC China continues to actively increase its addressable market, with 1,100 untapped cities on the model’s radar for entry. Over the previous 5 years, KFC China has seen exceptional progress, with common annual progress in web new KFC shops exceeding 22 %, all whereas sustaining a mean retailer payback interval of roughly two years. On the similar time, KFC China has been accelerating retailer openings in lower-tier cities whereas growing retailer density in higher-tier cities.
By way of the introduction of modern merchandise and growth of recent classes, KFC China is proactively broadening its client base and catering to the evolving wants of Chinese language customers, the corporate famous. Latest successes embody the introduction of Juicy Entire Hen and Beef Burgers, with each merchandise producing annual gross sales exceeding $100 million. KFC China can also be widening its menu to introduce extra entry-level worth level choices, guaranteeing its merchandise higher cater to the wants and preferences of a broader vary of customers. In the meantime, KFC China continues to increase its in-house espresso model, KCOFFEE, aiming to open greater than 300 standalone KCOFFEE shops by the tip of 2024.
In tandem with elevated retailer density throughout numerous areas, KFC China is redefining comfort and making its supply companies extra accessible, the corporate added. Notably, a double-digit surge in small-ticket supply orders of 40 RMB or much less throughout main fast-food gamers represents an space of alternative for KFC China.
KFC China has additionally showcased a steadfast dedication to sustaining sturdy margins, enabled by procurement excellence, steady product innovation, and full hen utilization, the corporate stated. Moreover, the model has embraced cutting-edge applied sciences, together with in-store Web of Issues, automation, and synthetic intelligence (AI) to reinforce operational effectivity.
Wanting ahead, KFC China plans to additional speed up its annual web new retailer openings to exceed 1,200 within the subsequent three years, with 15 % to twenty % anticipated to be franchise shops, aligning with Yum China’s overarching objective to achieve 20,000 shops by 2026. KFC China’s future technique encompasses a various vary of retailer fashions and modules – starting from normal shops to future idea shops, mini-stores, and shops strategically positioned in lower-tier cities. This strategy underscores KFC China’s dedication to innovation-empowered progress and adaptableness within the dynamic Chinese language market, the corporate added.
