Yum China outlines KFC and Pizza Hut expansion into lower‑tier cities

Yum China, the relation of KFC and Pizza Hut successful China, has acceptable retired plans to accelerate store openings and assistance profitability with an accent connected lower-tier cities.

KFC aims to turn its China property by one-third to transcend 17,000 outlets by 2028, and expects operating nett for the marque to apical 10bn yuan ($1.41bn).

The marque volition trust connected flexible store formats and an accelerated franchise exemplary to widen scope into much than 2,000 lower-tier cities and further strategical channels.

The enlargement of Pizza Hut is besides planned.

From a basal of 4,000 stores, the institution plans to adhd much than 600 nett caller Pizza Hut restaurants each twelvemonth up to 2028.

To participate lower-tier cities, the institution aims to utilise a little capital-expenditure and a streamlined operating model.

Yum China expects Pizza Hut’s operating nett successful China to treble betwixt 2024 and 2029 and aims to summation the full Pizza Hut locations to much than 6,000.

Technology and supply-chain initiatives volition signifier portion of Yum China’s strategy.

The institution plans for the advancement of agentic AI capabilities to enactment system-human interaction, multi-agent coordination and data-driven decision-making.

Where appropriate, Yum China volition besides enactment with suppliers to physique integrated supply-chain parks to heighten operational synergies.

Yum China CEO Joey Wat stated: "As a result, contempt our important scale, store enlargement is accelerating. It took america 33 years to scope our archetypal 10,000 stores, and we present purpose to treble that successful conscionable six years by 2026 and transcend 30,000 stores wrong the pursuing 4 years by 2030.

“Our innovative and flexible store formats, unneurotic with a hybrid exemplary of some equity stores and franchise stores, volition alteration deeper and faster marketplace penetration."

For the afloat twelvemonth 2025, Yum China has acceptable targets for edifice borderline of betwixt 16.2% and 16.3% for the group, astir 17.3% for KFC and 12.7% for Pizza Hut, and escaped currency travel per stock of $2.20 to $2.30.

By 2028, the company’s goals see much than 25,000 full stores and a radical edifice borderline of astatine slightest 16.7% for Yum China, with KFC borderline astatine slightest 17.3% and Pizza Hut borderline astatine slightest 14.5%.

In aboriginal November 2025, Yum! Brands, Yum China’s US-listed parent, announced it is conducting a strategical reappraisal of its Pizza Hut business.

Pizza Hut was the lone part to grounds a same-store income diminution successful the 4th ended 30 September 2025. The chain’s same-store income dipped 1% during the 3rd quarter, driven by a 6% autumn successful the US.

"Yum China outlines KFC and Pizza Hut enlargement into lower‑tier cities" was primitively created and published by Verdict Food Service, a GlobalData owned brand.