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Yum China on Course to Open 1,300 Stores in 2023

The owner of KFC and Pizza Hut chain in mainland China, Yum China Holdings, plans to stick to a goal of opening up to 1,300 stores this year.

The plans remain in place as the business still sees growth opportunities despite the slowing economy, the CEO said today. Joey Wat told Reuters in an interview after the company’s results, which showed a 25 per cent rise in second-quarter revenue, that Yum intends to stay at a pace of 1,100 to 1,300 new outlets this year, while overall capital spending will be between US$700M to $900M.

“The market, despite sort of slower GDP growth, it is still much faster, or twice as fast as some developed markets and it is huge. It still offers us amazing growth opportunities,” she said. “In the last few years we have been opening new stores not only at lower tier cities but also increased density in the top tier city and the results are very good,” she said, referring to the unofficial classification of China’s cities by population size, income and consumer activity.