SHANGHAI, China — Yum China Holdings, Inc. announces that it has reached the milestone of 10,000 stores in its restaurant network across China and overseas. It celebrated at the 10,000th store opening this month in Bo’ao, Hainan province. This represents a significant milestone for Yum China which, having first entered China in 1987, has since grown to become the largest restaurant company in the country in terms of system sales.
“The opening of Yum China’s 10,000th store is an important milestone that is symbolic of the incredible progress made in recent years. This achievement would not have been possible without the exceptional efforts of our employees and customers,” said Joey Wat, CEO of Yum China.
“More than 30 years ago, we started our journey in China with the opening of the first KFC restaurant in Beijing. Since then, our flagship brands, KFC and Pizza Hut, have become deeply ingrained in the lives and memories of millions of Chinese people. We are excited by our long-term prospects in China, especially the huge potential to further expand our store network and grow our digital footprint to capture online opportunities. To drive this growth, we will continue to prioritize innovation across every area of our business.”
Yum China currently operates a portfolio of restaurant brands, including KFC, Pizza Hut, Taco Bell, East Dawning, Little Sheep, Huang Ji Huang and COFFii & JOY, with locations in over 1,400 cities and towns across mainland China. These established and emerging brands are increasingly integrated into local popular culture and consumers’ daily lives.
Yum China continues to rapidly expand its restaurant count in recent years, from 7,562 units as of year-end 2016 to 9,200 units as of year-end 2019, representing a compound annual growth rate of 7%. In 2019, Yum China opened 1,006 new stores, the highest annual store openings in our history, and close to three new openings per day. It is worth noting that the 10,000th store milestone is inclusive of the more than 600 units contributed by Huang Ji Huang following Yum China’s acquisition of the business earlier this year.
Despite the challenges caused by COVID-19, the Company’s original target of 800-850 new stores in 2020 remains unchanged. Yum China will use multiple store formats to grow its footprint in new and existing markets across all city tiers. In addition, new designs and an extensive store remodeling program will enhance customer experience and keep existing stores looking refreshed.
Yum China’s long-term vision is to be the world’s most innovative pioneer in the restaurant industry and the Company has prioritized innovation across the entire business as the primary enabler of growth. This includes adopting and developing Yum China’s powerful digital ecosystem, which integrates online platforms with offline stores and has been key to enhancing customer experience and engagement. Going forward, Yum China will continue to invest in key growth opportunities including new stores, store remodeling, digitalization, and supply chain and technology capabilities.