Pizza Hut China surpasses 4,000 stores

Pizza Hut China has officially surpassed 4,000 stores amid its rapid expansion across the country, fueling its parent company Yum China's ambitious goal of operating 30,000 outlets by 2030.

The expansion reflects Pizza Hut's pivotal role in Yum China's broader growth strategy. According to Yum China's third quarter financial report, the company reached the 4,000-store mark in China as of Sept 30, a number reached in just over two years. This is in stark contrast to the 33 years it took to reach the first 3,000 locations. The rapid growth underscores the brand's ongoing innovation in store models, supply chain optimization and market strategy refinement, said the company.

The opening of the 4,000th store also showcases foreign companies' continued confidence in China, even amidst global economic uncertainties. Analysts view this as a vote of confidence in China's resilient economy.

The newly opened store in Sanya, Hainan province, also features cutting-edge operational technology, including an AI-powered automated ingredient system. This new kitchen innovation is tailored specifically to the Chinese market, ensuring consistent quality and taste while improving efficiency, especially during peak hours. The system allows for precise control over pizza toppings, as well as speeding up production amid rapid upgrades of menus each year.

"We've embedded standardized recipes into the system, which not only ensures consistent quality, but also accelerates the training process for new employees," said Kuai Jun, general manager of Pizza Hut China.

In addition to the automated kitchen system, other innovations such as automatic fryers, beverage dispensers and dishwashers are boosting store efficiency, further enhancing the customer experience.

Pizza Hut continues to innovate not only in operations but also in product offerings. The brand recently launched the "10-inch Handmade Thin Crust Pizza Series", which quickly became its best-selling item.

The brand's loyalty programs, such as "Screaming Wednesday" and "buy one get one free" offers, have contributed to a membership base that now exceeds 200 million.

The company's delivery business has been another key growth engine, with continued increases in market share and sales proportion. "Delivery is one of our most important growth pillars," said Kuai. "We continue to see improvements in both sales and market penetration."

Yum China's CEO, Joey Wat, has set an ambitious goal for the company to expand its footprint to 30,000 stores by 2030.

This plan includes an accelerated pace of expansion, aiming to reach 20,000 stores by 2026 and surpass 30,000 in the following four years.

Currently, Yum China operates more than 17,000 locations across brands including KFC, Pizza Hut, Lavazza, Little Sheep and Taco Bell.

The company's strategy is not solely focused on increasing store numbers but also on deepening its penetration into lower-tier cities. By 2028, Yum China plans to increase its service coverage to over 50 percent of China's population, up from the current 33 percent.