10,000, of which at least 6,749 are KFC.
The goal of Yum China this year is to open 800-850 new stores in addition to Huang Jihuang, and the total capital expenditure is expected to be USD 5-550 million. According to the proportion of the number of new stores opened in the first half of this year, among the 800 new stores, the number of new KFC, Pizza Hut and other brands will be 706, 44 and 50 respectively, and the proportion of KFC will increase.
Yummous China has gradually moved from a catering group to a single catering brand company.
Diversity is a panacea?
KFC and McDonald’s have entered the Western-style fast food restaurant in mainland China one after another, and their development speeds after entering are not the same. As of June 30, 2020, the number of KFC stores in mainland China has exceeded twice the number of McDonald’s stores. The reason is inseparable from the localization and innovation speed of KFC products.
After KFC entered China, it has successively launched special Chinese products, such as the old Beijing chicken rolls and rice bowl series. Recently, the new bean curd breakfast has also sold well. In addition, every time KFC sells hot products for a limited time, such as Nun Niu Wufang and Chizza, it can trigger a buying boom.
After Pizza Hut’s performance declines, Yum China will transfer KFC’s rapid development of product diversification strategy to Pizza Hut. Pizza Hut has successively launched crayfish pizza, Beijing roast duck pizza, crayfish lasagna, buffet, etc., and even launched hot dry noodles in cooperation with Cai Linji in Wuhan.
But diversity is not a panacea.
In the eager attempt, Yum China has lost its brand positioning and its uniqueness in the refined catering industry, trying to make consumers think of the same brand when they have any needs, but instead let the brand consume The reader’s mind is blurred and it is difficult to be awakened again.
KFC has many stores in transportation hubs, and Dongfang Jibai is also positioned at train stations and airports. When KFC introduced Chinese food such as rice bowls, the two brands of Yum! actually started to grab their own business. If the two prices are similar, based on the anchoring principle, most of them will choose the more familiar KFC.
When Pizza Hut first entered China, it was positioned as a high-end Western-style catering brand as an “initiator of Chinese knives and forks”. However, the threshold of the pizza shop is low. After watching Pizza Hut taste the dividend, Big Pizza is great! More affordable self-service pizzerias such as John have poured in. After entering the era of mobile internet, Domino’s Pizza and other companies that are well versed in delivery have invaded further.
In order to accelerate the expansion when the market share was divided, Pizza Hut did not spend energy to improve the product and store layout, and lost the original users who were “for face” and pursuing the western food environment; the embarrassing price positioning made it unable to compete with a small number of products but operating A small brand with low cost; even if new pizza flavors are continuously introduced, the drainage effect is far weaker than the diversion effect of a boutique pizza shop.
For the 30th anniversary celebration, Pizza Hut launched a buffet of 158 people. Although a lot of people were queuing up in a few days, many of them thought it was “not worth it.” When the average per capita dinner is 100+ and the buffet in the first-tier cities is more than 200 yuan, the Western-style buffet of 158 yuan is considered “not worth”. It can be seen that Pizza Hut has become a “fast food system” of the same kind as KFC, and does not have its own. Features.
In the past, people could get a small salad bowl at Pizza Hut for 30 yuan, and everyone compared who piled high, who had the advantage, and even the era when some people went specifically for the salad tower, is gone. Even if it recovers a certain amount of revenue with the convenience of take-out, is Pizza Hut really willing?
Diversity is the honey of KFC and the arsenic of Pizza Hut. In the catering industry, no model is omnipotent. KFC’s standardized process failed to help Dongfang Bai, diversification also “killed” Pizza Hut. The diversified development direction in the catering industry has not brought any benefits to Yum China, only losses for years.