The KFC operator, Yum China Holdings, is focusing its store expansion efforts in China on smaller cities, as demand there has recovered from the pandemic faster than in the country’s major cities, its chief executive said, reports Reuters. Yum China also operates the Pizza Hut and Taco Bell chains in China and is the country’s biggest fast food operator with over 11,000 outlets.
On Thursday, the company told an investor day that it was accelerating its store network expansion to reach a 20,000 outlet milestone across 2,700 cities. The company did not break down how many of the planned new stores are for what it refers to as lower-tier cities.
Yum China’s Chief Executive Joey Wat, however, told Reuters in an interview that the company was targeting such areas as their residents had larger disposable incomes versus those of larger cities, such as Beijing and Shanghai, and were willing to spend more.