Publications
Publications
- December 2024
- HBS Case Collection
Yum China: People First
By: David E. Bell, Shu Lin and Nancy Dai
Abstract
Joey Wat, CEO of Yum China Holdings, Inc., which operated KFC, Pizza Hut, and Taco Bell in mainland China, oversaw KFC’s milestone as the first Western quick-service chain in China to surpass 10,000 stores, with Pizza Hut exceeding 3,000 locations. This expansion was achieved with a workforce size comparable to when the company operated 7,000 stores. Aiming to reach 20,000 locations by 2026, the company needed to increase store density in existing cities while expanding into lower-tier cities. Committed to enhancing labor efficiency, Wat considered whether technology and employee empowerment could sustain this efficiency and whether the pace of growth justified exploring franchising as a long-term strategy.
Keywords
Growth and Development Strategy; Franchise Ownership; Performance Efficiency; Expansion; Employees; Food and Beverage Industry; Agriculture and Agribusiness Industry; China
Citation
Bell, David E., Shu Lin, and Nancy Dai. "Yum China: People First." Harvard Business School Case 525-038, December 2024.