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Tag: accelerates

  • Riding High on KFC, Pizza Hut Success, Yum China Accelerates Expansion to Surpass 20,000 Stores in 2021

    Riding High on KFC, Pizza Hut Success, Yum China Accelerates Expansion to Surpass 20,000 Stores in 2021

    Yum China, the company behind KFC and Pizza Hut, has expressed its plans to further expand its footprint after a profitable second quarter. The robust financial performances from both KFC and Pizza Hut were significant factors in the company’s growth.

    Strong Quarterly Performance Fuels Expansion Plans

    Yum China’s revenue rose 13% YoY to $3.1 billion for the second quarter, which concluded on June 30. A 6% increase in system sales, discounting foreign exchange impacts, exceeded the broader performance of China’s catering industry. The company also marked a second-quarter record, with an operating profit of $348 million.

    Customer demand has shown resilience, with same-store sales witnessing a marginal 1% growth. This growth, driven by a 5% increase in transactions, marks the 14th consecutive quarter of transaction growth. The quarter saw the opening of 560 new stores, a 67% increase from the previous year, elevating the total number of restaurants to 19,297. Yum China has also indicated its plans to surpass the 20,000 store milestone by the end of the year.

    KFC and Pizza Hut Lead the Way

    KFC has spearheaded growth for Yum China, opening 335 new stores to reach a staggering total of 13,789 locations. System sales for KFC have climbed by 7%, while same-store sales have grown by 1% for the fifth consecutive quarter.

    Pizza Hut has also seen increased traction, with the addition of 174 new stores – nearly double the number opened during the same period last year. System sales for Pizza Hut have grown by 6%, while same-store transactions have surged by 13%.

    Joey Wat, CEO of Yum China, spoke about the company’s imminent breakthrough: becoming the owner of the Pizza Hut brand in Mainland China. She mentioned that the company anticipates savings in license fees to facilitate margin expansion.

    Newer concepts are also gaining momentum. Kpro, Yum China’s light-meal business, is projected to reach about 800 locations this year. KCoffee Café has expanded to more than 3,300 locations, and Pizza Hut’s Burger Bar, with plans to reach 500 to 600 locations by year-end, now operates in more than 200 outlets.

    The company has reaffirmed its 2026 outlook, predicting high single-digit operating profit growth and double-digit EPS growth. This excludes the anticipated impact of the acquisition of the Pizza Hut brand in mainland China, expected to finalize next month. Following the acquisition, Yum China aims for more than 800 net new store openings annually from 2027.

    Questions & Answers

    What financial growth did Yum China witness in the second quarter?
    Yum China saw a 13% YoY rise in revenue, reaching $3.1 billion.

    What has been the contribution of KFC and Pizza Hut to Yum China’s growth?
    KFC opened 335 new stores, and Pizza Hut added 174 new ones, contributing significantly to the company’s growth.

    What is Yum China’s outlook for 2026?
    Yum China predicts high single-digit operating profit growth and double-digit EPS growth for 2026, excluding the impact of the anticipated Pizza Hut brand acquisition in mainland China.

  • Kuehne+nagel Boosts India’s Logistics Sector With Five New Fulfilment Centres, Creating 1,500 Jobs

    Kuehne+nagel Boosts India’s Logistics Sector With Five New Fulfilment Centres, Creating 1,500 Jobs

    Kuehne+Nagel, the international logistics firm, is expanding its operations in India with the establishment of five new fulfilment centres. The locations for these centres include Gurgaon, Kolkata, Nagpur, Mumbai, and Rajpura. This expansion will provide 100,000 square meters of additional capacity, raising the company’s total fulfillment centre footprint in the country to nearly 500,000 square meters. The new centres will create over 1,500 jobs nationwide, supporting local economic growth.

    India’s Economic Potential

    India is expected to rise to the position of the world’s third-largest economy by 2030, underpinned by robust growth in industries such as high-tech, automotive, consumer goods, and healthcare. As these sectors continue to expand, there’s an increasing demand for a scalable, efficient logistics infrastructure.

    Automation and Boosting Order Handling Capacity

    The new fulfilment centres will employ advanced automation technologies like telescopic conveyors and high-performance sorting systems. These will facilitate an increase in peak order handling capacity by 75%.

    City Selection and Industry Growth

    The locations of the new centres cover the spectrum of Indian cities. This includes tier-1 cities like Mumbai and Kolkata, tier-2 hubs Gurgaon and Nagpur, and the tier-3 city, Rajpura. The diverse location selection aligns with India’s industrial growth across multiple cities. Gurgaon and Nagpur are emerging as growth centres for various industries, while Rajpura is experiencing a surge in manufacturing and distribution.

    Strategic Investment

    Damian Raczynski, Senior Vice President of Contract Logistics at Kuehne+Nagel Asia Pacific, expressed his optimistic views regarding the company’s expansion. He shared that India is a crucial growth market for Kuehne+Nagel and that they invest where their customers are. He further emphasized that this expansion enhances their ability to serve high-demand sectors, like consumer and healthcare. The goal is to deliver a service that’s characterized by speed, reliability, and flexibility.

    Questions & Answers

    What is the purpose of Kuehne+Nagel’s expansion in India?
    The expansion aims to meet the growing demand for efficient logistics infrastructure in India’s expanding industries such as high-tech, automotive, consumer goods, and healthcare.

    What additional features will the new fulfilment centres have?
    The new centres will incorporate advanced automation technologies such as telescopic conveyors and high-performance sorting systems, which will boost peak order handling capacity by 75%.

    How will this expansion benefit the local economy?
    The expansion will generate over 1,500 new jobs nationwide, contributing positively to the growth of local economies.

  • ABC-mart Debuts In Philippines With ‘grand Stage’ Store, Marking New Chapter In Asian Expansion

    ABC-mart Debuts In Philippines With ‘grand Stage’ Store, Marking New Chapter In Asian Expansion

    Japanese retail giant ABC-Mart is set to make its first appearance in the Philippines with the opening of a store in Bonifacio Global City (BGC), Manila, scheduled for September. This marks the corporate expansion of the company into a second market in the region following a successful launch in Vietnam which took place in 2022.

    Overseas Expansion

    ABC-Mart currently operates nearly 400 stores overseas, predominantly in South Korea and Taiwan. The company is also actively investigating opportunities for growth in other Asian countries such as Thailand and Indonesia.

    According to Kabir Buxani, the incoming CEO of Sonak Retail Group – the local partner of ABC-Mart – BGC is an ideal location for the brand’s first store in the Philippines. “BGC has a lively atmosphere and sets the tone for fashion in the region,” Buxani indicated.

    The Grand Stage Store

    The store, dubbed as the “Grand Stage,” will span two levels, covering an area of 750 square meters. It is expected to stock over 1,000 products including limited-edition sneakers, sandals, and clothing from major brands such as Nike, Adidas, Puma, Asics, and New Balance.

    In addition, the store will showcase the company’s first-ever wellness corner worldwide, integrating footwear with lifestyle products.

    Koji Higashimae, CEO of ABC-Mart Sonak Philippines, stated that the company’s aspiration is to achieve a balance between variety and accessibility. “Our belief is that style should not compromise comfort and high-quality fashion should be within everyone’s reach,” Higashimae explained.

    Furthermore, the company has plans to open a second outlet later in the year at Mitsukoshi in BGC.

    Questions & Answers

    What is ABC-Mart’s expansion strategy in Asia?
    ABC-Mart is strategically expanding its retail footprint in Asia, having already established stores in South Korea and Taiwan. The company has now stepped into the Philippines and Vietnam, with future prospects in Thailand and Indonesia.

    What can customers expect at the new ABC-Mart store in BGC, Manila?
    Customers can look forward to a wide variety of over 1,000 products, including clothing, limited-edition sneakers, and sandals from well-known brands like Nike, Adidas, and others. The store will also introduce the company’s first-ever wellness corner, which will blend footwear with lifestyle products.

    What is the philosophy of ABC-Mart when it comes to fashion?
    ABC-Mart believes that style should not compromise comfort. The company aims to provide high-quality, fashionable products that are both diverse in variety and accessible to everyone.