In China, the fast-food brand KFC - operated by Yum China in the country - generated over 8.2 billion U.S. dollars in revenue in 2023, an increase of approximately 14 percent compared to the previous year. With KFC as its flagship chain, Yum China has emerged as China's dominant restaurant company by far, reporting a revenue of nearly 11 billion U.S. dollars in 2023.
Early entry and rapid expansion
KFC was one of the first Western fast-food chains to enter the Chinese market when China was in the early stages of economic reform and opening to the outside world. It swiftly established footprints in 16 key locations, laying the foundation for its accelerated expansion. By the end of 2023, KFC had an extensive network in both urban and rural areas in China, with more than ten thousand restaurants.
Localization and innovation
Facing competition from other fast-food chains such as McDonald's, Pizza Hut, and other local Chinese fast-food chains, KFC made efforts to adapt to local tastes and preferences while maintaining its global brand identity. Other than the classic KFC fried chicken, they also offer various Chinese-inspired dishes such as congee, egg tarts, and rice dishes. It is no wonder that KFC in China has been known for its innovative marketing campaigns and menu offering. The company consistently rolls out approximately 50 new products annually, a stark contrast to the one or two new items introduced in the United States.
