SHANGHAI, March 11, 2020 /PRNewswire/ -- Yum China
Holdings, Inc. (the "Company" or "Yum
China") (NYSE: YUMC) today announced that it has been named
to Fast Company's prestigious annual list of the World's Most
Innovative Companies for 2020. Yum
China has been recognized among the top 10 most innovative
companies in China, and is one of
only a few restaurant holding companies in the world to be
included. The list honors the businesses making the most profound
impact on both industry and culture, showcasing a variety of ways
to thrive in today's fast-changing world.
The recognition illustrates the Company's focus on food and
digital innovation. According to Fast Company, Yum China was praised "aggressively makes
technological enhancements to the customer experience, and new menu
items are the secret herbs and spices for its business."
"We are honored by this prestigious recognition from Fast
Company. It is a validation of our long-term vision, which is to be
the world's most innovative pioneer in the restaurant industry,"
said Joey Wat, CEO of Yum China. "This award is made possible by the
ongoing efforts of our employees who live and breathe our vision
every single day. By harnessing the world's largest restaurant
loyalty membership program, a powerful digital ecosystem, and
industry leading data and AI capabilities, we are constantly
innovating to better serve our customers and achieve sustainable
growth."
"At a time of increasing global volatility, this year's list
showcases the resilience and optimism of businesses across the
world. These companies are applying creativity to solve challenges
within their industries and far beyond," said Fast Company senior
editor Amy Farley, who oversaw the
issue with deputy editor David
Lidsky.
A relentless commitment to innovation is the major force behind
Yum China's growth strategy. The
Company's powerful digital ecosystem, that integrates online
platforms with offline stores, is key to enhancing customer
experience and engagement throughout the customer journey. Data and
AI capabilities are enabling Yum
China to make more informed and improved decisions
throughout the entire business, including menu innovation,
delivery, marketing, store operations and supply chain
management.
Powerful digital ecosystem for an immersive customer
experience
At the heart of Yum China's
digital ecosystem are the KFC and Pizza Hut Super
Apps. They allow the Company to engage with customers
wherever they are, and extend beyond food to music, games, sports,
and entertainment. Within each App are integrated individual
digital features such as coupons and vouchers, privilege
memberships, e-commerce, payment options and corporate social
responsibility activities.
With a combined 240 million digital members at the end of 2019,
membership and loyalty programs at KFC and Pizza Hut
provide a wealth of valuable customer feedback and knowledge across
different cities. This data helps determine the most effective and
preferred store formats, store locations, and menu items. It also
significantly increases the effectiveness of marketing campaigns
while building awareness and loyalty quickly. Additionally,
exciting offers within the Privilege Program drive frequency, value
perception and customer loyalty.
Digital orders, which include
delivery, mobile orders and kiosk orders, accounted for 61% of Yum China's sales in 2019. In addition to the
widely used Alipay and WeChat Pay platforms, YUMC
Pay, a payment option in partnership with Union Pay, offers
another convenient option for customers. Meanwhile, increased
automation in stores is creating disruptive retail experiences.
Self-ordering kiosks with Alipay's "Smile-to-Pay" facial
recognition payment technology can be found at over 1000
KFC stores and fully automated dessert stations are
available in selected stores in five cities.
Delivery is a key growth driver for Yum
China, especially as the Company continues to expand into
lower-tier cities. Rolled out nationwide, Delivery
3.0 is Yum China's
intelligent trade zone focused platform that optimizes delivery
services and improves efficiency. The platform's AI driven
dispatching system and logistics overflow support is transforming
the relationship between customers, riders and stores.
Data driven intelligent marketing and harnessing AI to
drive sales and operational efficiency
Digital marketing accounts for approximately 60% of Yum China's marketing spend and timely data is
helping the Company take a flexible yet targeted approach to
marketing based on consumer preferences. For example, in 2019,
Yum China rolled out AI
enabled menus and recommendations for all mobile
pre-orders, providing personalized customer interaction and
trade-up opportunities.
Using AI based technology, Yum
China has significantly improved sales forecasting, leading
to better inventory management and store labor scheduling. Notably,
this enhances the ability to quickly reallocate resources to new
roles and growth areas. Yum China
has developed tailor made algorithms that help to evaluate changing
data patterns at the store level, such as location, sales
performance, weather, promotions, and holidays. The Company is also
rolling out smart watches that enable RGMs to closely
monitor the ordering and serving status of restaurants and quickly
identify and rectify any issues.
Doubling down on investment in innovation
Yum China recently reiterated its
commitment to stepping up investment in innovation throughout the
Company, particularly in the areas of digital, technology and
supply chain. This is expected to further drive profitable
innovation-led growth, increase operational flexibility and agility
and ensure first class execution that consistently exceeds customer
expectations.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. Forward-looking
statements generally can be identified by the fact that they do not
relate strictly to historical or current facts and by the use of
forward-looking words such as "expect," "expectation," "believe,"
"anticipate," "may," "could," "intend," "belief," "plan,"
"estimate," "target," "predict," "likely," "will," "should,"
"forecast," "outlook," "look forward to" or similar terminology.
These statements are based on current estimates and assumptions
made by us in light of our experience and perception of historical
trends, current conditions and expected future developments, as
well as other factors that we believe are appropriate and
reasonable under the circumstances, but there can be no assurance
that such estimates and assumptions will prove to be correct.
Forward-looking statements include, without limitation, statements
regarding our future investment plans, the expected effects of
adopting technologies, as well as their impact on business
operations. Forward-looking statements are not guarantees of
performance and are inherently subject to known and unknown risks
and uncertainties that are difficult to predict and could cause our
actual results to differ materially from those indicated by those
statements. We cannot assure you that any of our expectations,
estimates or assumptions will be achieved. The forward-looking
statements included in this press release are only made as of the
date of this press release, and we disclaim any obligation to
publicly update any forward-looking statement to reflect subsequent
events or circumstances, except as required by law. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty. You should consult our
filings with the Securities and Exchange
Commission (including the information set forth under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations " in our Annual
Report on Form 10-K) for additional detail about factors that could
affect our financial and other results.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! Brands in
mainland China. It has exclusive rights in mainland China to KFC,
China's leading quick-service restaurant brand, Pizza Hut, the
leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving
innovative Mexican-inspired food. Yum
China also owns the Little Sheep, East Dawning and COFFii
& JOY concepts outright. The Company had 9,200 restaurants in
over 1,300 cities at the end of December
2019. Yum China ranked # 362
on the Fortune 500 list for 2019. In 2020, Yum China was named to the Bloomberg
Gender-Equality Index and was certified as a Top Employer 2020 in
China by the Top Employers
Institute, both for the second consecutive year. For more
information, please visit http://ir.yumchina.com.
About Fast Company
Fast Company is the only media brand fully dedicated to the
vital intersection of business, innovation, and design, engaging
the most influential leaders, companies, and thinkers on the future
of business. Since 2011, Fast Company has received some of the most
prestigious editorial and design accolades, including the American
Society of Magazine Editors (ASME) National Magazine Award for
"Magazine of the Year," Adweek's Hot List for "Hottest Business
Publication," and six gold medals and 10 silver medals from the
Society of Publication Designers. The editor-in-chief is
Stephanie Mehta and the publisher is
Amanda Smith. Headquartered in
New York City, Fast Company is
published by Mansueto Ventures LLC, along with our sister
publication Inc., and can be found online at
www.fastcompany.com.
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SOURCE Yum China Holdings, Inc.