KFC owner cashing in on home delivery, take-out trend in China

Yum China is trying to cash in further with the home delivery and takeout trend with its KFC meal kits, which includes a snail-based rice noodle soup dish called luosifen that has become immensely popular in China.

Yum China, which locally operates KFC, Pizza Hut, and Taco Bell, reported better-than-expected earnings by the quarter ended December with revenue growing 11 percent to almost $2.3 billion, although store sales dipped 4 percent.

Home delivery and takeout now account for over 50 percent of sales.

With home consumption a growing trend amid the pandemic, Yum China launched smart lockers for picking up takeouts, self-driving vans that serve breakfast to office workers, plant-based meals, and home delivery of Pizza Hut steaks. It's even started to let customers buy 1.5-liter bubble tea buckets, which "sold out within days," said CEO Joey Wat.

Some branches follow what the company calls a "small town format," which requires less investment and offers diners a slightly different menu.

Wat said that the initiative, which launched last October in 2,000 stores, was not just a pandemic play. After an "encouraging" show of results, the company plans to expand the offering to more cities.

Yum China has about 10,000 stores and 400,000 employees.
It has been experimenting heavily to try to bring its business back to pre-pandemic levels.