Yum China has announced plans to rollout thousands of new locations across mainland China in the next two years, highlighting the fast-food giant’s ambitious plans for continued expansion.
The operator of KFC and Pizza Hut in China said is targeting 20,000 stores nationwide by 2026, which will extend its reach to approximately 700 million people, or around half of the country’s population.
“The China market will offer us ample white space for the foreseeable future. On top of the opportunity to serve more people is a favourable mix change, as Chinese consumers in lower-tier cities gradually upgrade their consumption,” said Joey Wat, CEO of Yum China.
“As the largest restaurant company in China, we are uniquely positioned to capitalize on this trend. In fact, over half of our new stores have been in lower-tier cities in recent years. A good share of our future growth should come from the growing pool of consumers in such markets.”
The CEO, in her annual letter to stockholders, said growth opportunities in China continue to be incredibly exciting, with China expected to continue to be the largest single contributor to global economic growth in 2024. Today, Yum Brands operates in over 2,000 cities across China, and currently serves approximately one-third of China’s population.
“Our core brands are deeply rooted in China and are beloved by millions of consumers. But we can never rest on our laurels,” said Wat. “We’ve worked hard over the past decades to develop industry-leading operational capabilities, outstanding customer care and a world-class supply chain – all backed by advanced technology. The breadth and depth of these capabilities set us apart and undergird our sustained success.”
