This article only represents the author's own views.
After years of building up a dominant position in China’s restaurant market, Yum China Holdings Inc. (YUMC.US;9987.HK) is getting down to the nitty-gritty to fill in the many gaps it has yet to penetrate in the massive market. It’s also focusing on key technology and other upgrades to keep its operations lean, as it enters a new stage of using flexible store formats to enhance penetration in higher-tier cities and accelerate expansion in lower-tier cities.
Those were two of the key messages coming from the operator of KFC and Pizza Hut restaurants in China at its latest investor day on Nov. 17 in the southern boomtown of Shenzhen, where it laid out an ambitious goal of expanding its overall store count. The company said it aims to operate over 25,000 stores by 2028 and more than 30,000 by 2030, up from 17,514 at the end of September. By comparison, global rival McDonald’s (MCD.US) is a distant second in China’s fast-food space with about 6,800 stores at the end of last year.