Yum! China
The Yum! China Division (includes mainland China, Thailand and KFC Taiwan), based in Shanghai, has been reported separately since the beginning of 2005 due to its size, unique strength and importance.
Mainland China is Yum! Brands number one market for new company restaurant development worldwide. In 2008, operating profits for the China Division were $469 million and the company opened more than 500 new restaurants last year in mainland China.
Our strategy is to be the leader in every significant food service category in mainland China. KFC was the first quick-service restaurant chain to enter China in 1987, the first to bring franchising to China in 1992 and the first to open a drive-through in China in 2002. KFC continues to be the number one quick-service restaurant brand and the largest and fastest growing restaurant chain in mainland China today, with nearly 2,600 restaurants in more than 550 cities. Yum! opens nearly one new KFC every day in mainland China.
Pizza Hut was the first restaurant chain to introduce pizza and Western-style casual dining to China in 1990 and the first to introduce pizza delivery to China in 2001. Today Pizza Hut is the number one casual dining brand in mainland China with approximately 430 Pizza Hut Casual Dining restaurants in more than 100 cities and an additional 79 Pizza Hut Home Service delivery units. (Q1 2009)
Each of our brands has great momentum in China as we continue our goal of at least 20,000 units over the long term in mainland China.
Below are a few examples of Yum!'s presence and impact in China. (Click on a photo to enlarge.)
Over time, we want to open over 20,000 restaurants and plan to expand our average unit volumes, which are high already, to even higher levels. With unit growth, same store sales growth and high returns, we’re winning BIG in China and the best is yet to come.
Samuel Su, Vice Chairman of the Board and President of Yum! Brands China Division
Expanding Horizons
Yum! is testing East Dawning, the company's Chinese quick-service restaurant brand to provide affordable, great-tasting, authentic Chinese food to the Chinese customer. The East Dawning menu is 100% Chinese and offers a wide range of options for all day parts including breakfast, lunch, dinner and snacks. Today there are 18 East Dawning test stores in China. (Q1 2009)
Press Release
May 20, 2008 Yum! Brands Donates RMB 16.5 Million (U.S. $2.3 Million) to China Earthquake Relief Efforts
Yum! in China
Yum! China marked the 2004 opening of the 1,000th KFC in mainland China by gathering 1,000 Restaurant General Managers on the Great Wall for the world’s largest "Yum! Cheer." Today there are nearly 2,600 KFC restaurants in more than 550 cities in China.
CNBC Special Report on China Features Yum! Brands
The CNBC business television network recently aired a Special Report on China. Sam Su, President Yum! China Division, discussed the company's growth, success and future plans for KFC, Pizza Hut and the innovative East Dawning concept.