Yum! Restaurants International Opens 1000th KFC In China; KFC Is China's Largest and Most...

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China is Yum! Brands Key Growth Country

Yum! Brands, Inc. (NYSE:YUM) announced the grand opening of its 1000th KFC restaurant in China by its international division, Yum! Restaurants International (YRI). The new restaurant is located in Beijing.

KFC has wide consumer appeal and is considered the most popular international brand throughout China, ranking higher than all others, according to a consumer survey conducted by ACNielsen.

"KFC's localization strategy has been a key to the company's success," said J. Samuel Su, president of Yum! Brands International Greater China. "This includes the integration of all aspects of KFC's operations including product development, human resources, supply chain management, logistics and quality control," added Su.

In addition to the classic KFC menu, the company creates products that appeal to local and regional tastes and draw inspiration from China's rich culinary tradition. In 2003, KFC introduced products influenced by Sichuan, Guangdong and Beijing regional tastes.

To mark the special occasion, 1,000 KFC restaurant employees assembled at the Great Wall for a photograph.

KFC was the first QSR to enter China in 1987 in Beijing. KFC had approximately 200 restaurants in 1997 and has quickly grown to 1,000 today. Today, KFC employs over 50,000 employees.

KFC introduced China's first drive-thru restaurant to capitalize on the country's increasing mobility, fast-paced lifestyle, greater consumer spending power and desire for luxury items such as automobiles.

Yum! Brands' key is driving global expansion with its portfolio of leading brands. For each of the past three years, the company has opened over 1,000 new international restaurants. China today makes almost as much money as the United States KFC business.

A 1999 study conducted by ACNielsen Media International, an operating unit of ACNielsen, found KFC to be the most popular international brand with Chinese consumers. The study was conducted among 44,000 consumers across 30 Chinese cities.