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Yum China Holdings, operator of KFC and Pizza Hut restaurant chains across mainland China and Hong Kong, plans to ramp up expansion into more lower-tier cities based on its flexible store formats, expecting this push to generate higher returns for the company over the next five years.
At the company’s Investor Day conference in Shenzhen on Monday, CEO Joey Wat said Yum China’s total number of outlets would increase to 30,000 by 2030, 76 per cent more than the firm’s estimated 17,000 outlets by the end of this year. The firm’s total outlets next year could hit 20,000, she added.
“Our innovative and flexible store models, together with a hybrid model of both equity stores and franchise stores, will enable deeper and faster market penetration,” Wat said. “With tremendous growth opportunities ahead, we are confident in achieving our targets and delivering sustainable shareholder value.”
The ambitious target comes amid heightened competition in the world’s second-largest consumer market, where many people have reduced spending amid a slowing economy.
It took Yum China 33 years to establish its first 10,000 stores on the mainland. The company’s current mission is to double that number by 2026. It expects to operate an additional 10,000 outlets within just four years.
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