The firm, which reported better-than-expected earnings on Thursday, stated that house supply and takeout now account for greater than 50% of gross sales. Revenue grew 11% to virtually $2.3 billion, although same-store gross sales dipped 4% within the quarter ended December, in comparison with the earlier yr.
“Home consumption is a growing trend. The pandemic has accelerated that,” CEO Joey Wat instructed CNN Business.
Wat stated that the initiative, which launched final October in 2,000 shops, was not only a pandemic play. After an “encouraging” present of outcomes, the corporate plans to develop the providing to extra cities.
The firm has motive to cling onto any new concept that sticks. On Thursday, it warned of a shaky restoration, which chief monetary officer Andy Yeung attributed to “regional outbreaks [of coronavirus], reduced travel and lingering effect on consumer behavior.”
The upcoming Lunar New Year vacation — sometimes an vital time for gross sales — will probably “be subdued,” he instructed analysts.
One yr in the past, the image was even bleaker. When the pandemic first hit, the corporate was pressured to take a step again and map out how lengthy it may survive on no gross sales, stated Wat.
“We worked it out — if we had zero business, our business can survive for a year,” she stated. That quantity of runway is “much better than the average player in the industry,” she famous, however “still not as long as I would like to see.”
The firm took some dangers. Last yr, Yum arrange greater than 1,100 new shops across the nation, a report degree of new openings. This yr, the agency plans to open one other 1,000 shops.
“It’s still a very carefully, well thought through process,” stated Wat. “We don’t just open stores for the sake of opening new stores.”
Some branches observe what the corporate calls a “small town format,” which requires much less funding and gives diners a barely totally different menu.
Wat argues that new initiatives aren’t simply to good to have; they are a necessity.
“In a highly competitive market, and very fast-changing market like China, we truly believe that innovation is the key not only to survival but to success,” she stated. “We have a very big job to do here, to protect, to support the jobs of 400,000 people. We need to make sure that we have tried our very best.”