Yum China is winning China’s QSR price wars

The news: Yum China is successfully navigating the country’s price wars thanks to steep discounts, smaller-format stores in lower-tier cities, and unique menu offerings that are bringing in traffic and expanding its addressable market.

By the numbers: Yum China reported its seventh consecutive quarter of same-store traffic growth, which CEO Joey Wat attributed to the company’s ability to deliver “value for money, good quality, and emotional value.”

  • Same-store transactions rose 1% year over year (YoY) thanks to more promotional offerings, including a limited-time all-you-can-eat deal at Pizza Hut, as well as KFC’s signature Crazy Thursday discounts.