Everyone enters and exits the restaurant every day. Perhaps they have never noticed how big the Chinese food and beverage market is. According to statistics, in 2018, it was 4.3 trillion yuan, and its GDP in Taiwan in 2018 was 4 trillion. Recently, the China Cuisine Association published the "Top 100 Chinese Catering Enterprises in 2018". Surprisingly, the total income of 100 companies accounted for 5.6% of the national food revenue, but from the perspective of these 100 companies, The top 30% of companies accounted for 75% of total revenue, and the top three companies accounted for more than 40%.
Earn 56 billion a year
Yum! Brands Inc.Golden Arch, and Haidilao are companies that everyone is familiar with. Haidilao is the hotpot king listed in Hong Kong in 2018. The Golden Arch is McDonald's (China) and in 2017 changed its name to Golden Arch. Yum! China ranked first in the top 100, accounting for 23.5% of the total revenue of the top 100 enterprises, and it is the overlord of the Chinese catering industry.
If you are not familiar with Yum! China, then you must know that KFC, Pizza Hut and Yum! China are their operators, but in fact, Yum! China operates more than two brands, including Little Sheep, Taco Bell, and East White. COFFii & JOY, etc., together constitute the dining empire of Yum! China. According to Yum’s 2018 earnings data, last year’s revenue reached 56 billion, which is equivalent to selling 3 sea fish in a year.
The catering industry, catering and stores are of course an essential business location. According to the latest data, there are more than 8,400 stores in Yum!, and 1200 cities in China have their restaurants. The administrative divisions in China are examined. The number of prefecture-level cities in the country is 293. The number of county-levels is 375, and the number of counties is 1,347. It is understood that Yum! has expanded to 1200 cities in China since its opening.
Yum’s simple and violent expansion is a crazy shop. When other catering companies are in a contraction, it runs counter to others. According to statistics, in 2018, Yum has opened 819 new restaurants in China and plans to open in 2019. 600-650 homes. Netizens predict that according to the expansion of Yum! China, perhaps in the near future, KFC and Pizza Hut can be seen in the villages and towns.
Compared with traditional catering companies, fast food-based industries seem to be more likely to make money. Take KFC as an example. As long as there is KFC, the place is basically lined up every day. From the perspective of catering companies, passenger flow and conversion rate are guaranteed. From the turnover rate point of view, the time to eat KFC is much shorter than the traditional diet, and many consumers take it away, do not need to occupy the seat; say the price, KFC's price is much more expensive than box lunch; no doubt let yum China one year You can easily earn $56 billion.
Yum China is equal to foreign fast food? KFC and Pizza Hut are from American fast food, but Yum! China is different from foreign fast food. In fact, as early as 1987, KFC opened its first store in Beijing; in 1989, the first Pizza Hut was also opened in Dongzhimen, Beijing, but there was no Yum! China. In order to sort out the relationship between Yum! China, it is necessary to The giant yum global restaurant group talked about. Yumori originated from the American Pepsi Group and was originally a business unit of the Pepsi Group. Only became an independent company in 1997.
It has been authorized by KFC, Pizza Hut and other food and beverage brands, and its business is spread all over the world. Therefore, the essence of Yum! Restaurant is the management of catering companies, and KFC is not its own brand. The Yum! China Group has set up a local Chinese company to operate in China. Since its establishment in Shanghai in 1993, the Chinese market has gradually become one of Parkson’s most important markets in the world, so in 2016, Parkson China The group was spun off and listed separately in the US.
In other words, Yum! China and US Yum! are now two completely independent companies, with no affiliation, only investment relations, and Yum! China also has Chinese investors, including Chunxing Capital and Ant Financial, which must be mentioned here. Ma Yun is also one of its shareholders. In short, the nature of Yum! China is the same as that of Alibaba and Tencent. The main shareholder of Alibaba is Japan Softbank, and the main shareholder of Tencent is South Africa's MIH Group. The main shareholder of Yum! China is the US Yum! Group.
Since Yum! China's business is the management and operation of catering enterprises, if Haidilao is willing, it can also authorize Yusheng China to use and operate. The essence of Yum! China is the agent of KFC and Pizza Hut in China. However, it is worth mentioning that Yum! China also has its own food and beverage brands, such as Little Sheep and the East, but KFC is still the money tree of Yum! China, which contributes 70% of its revenue. KFC also accounts for 70% of the stores.
Although there is media analysis, KFC, Pizza Hut and other brands have a severe business situation. According to public data, KFC has 160 million stable members in China, and Pizza Hut has 50 million stable members. The so-called stable members are people who often consume. Yum! China is the pioneer of the fan economy.
The stock price of Yum! China can better interpret the dominant position of the company in the catering industry. Since its listing in 2016, the soaring price has made investors smile, and many times the news that Yum! China will be acquired by the Chinese consortium, China, August 2018, China Venture Capital Gaochun Capital set up an investment group and proposed a $17 billion takeover offer. At that time, the market value of Yum! China was only $14.3 billion. Although it was higher than the premium of $2.7 billion, it still could not impress Yum! China.
According to the audited results of the fourth quarter and the full year of December 31, 2018 announced by Yum! China, the financial report shows that Yum! China’s fourth quarter total revenue was 1.91 billion US dollars and net profit was 74 million US dollars. According to the financial report, in 2018, Yum’s same-store sales in China increased by 2% year-on-year, of which KFC was 3%, but Pizza Hut fell by 4%, which lowered overall performance. However, Qu Cuirong said that although the sales performance of Pizza Hut in the same store declined, its passenger traffic is still growing.
Pizza Hut has always been a heart disease for Yum! China, which was officially defined as "facing challenges, revival is going on". Unlike the decade ago, the era of lying and making money has passed, in the impact of 2 new fast food restaurants and takeaways. Next, gradually lose the favor of Chinese consumers. The 21st Century Business Review stated that for Pizza Hut, Yum! China is reviving it in four areas, which in turn is to improve the foundation, strengthen digital construction, optimize delivery, and position the store. However, Wat said that although the macro environment is relatively unfavorable, its flexible business model and leadership in digitization and delivery services have led them to believe that they can maintain a good growth track through the right strategic positioning and make full use of the long-term potential of the market.
In an increasingly competitive market, KFC and Pizza Hut operated by Yum! China are facing fierce challenges. Will KFC and Pizza Hut be replaced by other fast food brands in the near future? How will the future roads transform? Wait and see!