Pizza Hut 2013 Annual Report Download - page 8
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EAST DAWNING AND LITTLE SHEEP
Along with Pizza Hut Home Service, we have two
other emerging Chinese food concepts in China
that give us the confidence we will eventually
become a dominant player in the massive Chinese
food category. We are developing our own Chinese
fast food concept, East Dawning, and are now
testing it in lower-tier cities. Admittedly, this is
taking longer than we expected, but we believe our
persistence will pay off.
The same could be said for Little Sheep, the concept
we acquired in 2012 because it is the leader in the
extremely popular hot pot category. While we’ve
had some major setbacks and are working hard
to improve the concept, we remain optimistic this
brand will become a significant growth driver down
the road.
NEW UNITS IN CHINA
Of course, the biggest opportunity we have
in China is to penetrate the country with
new restaurants. Looking at China’s new unit
development in total, we strengthened our
category-leading positions with 740 new
restaurants in 2013, exceeding our target of at
least 700 new units for the year. Going forward,
we expect another strong year of development in
2014 with plans to open at least 700 new units
as we continue to deploy capital into these high-
return investments.
Remember, Yum! currently has four restaurants
per million people in China, where the consuming
class is expected to grow from 300 million people
just a couple of years ago to over 600 million by
2020. This compares to nearly 60 restaurants per
million people in the U.S., where the consuming
class is over 300 million people today. Clearly,
we’re on the ground floor of global growth.
Make no mistake, we wouldn’t
trade our position in China with
any other restaurant company
in what remains the #1 retail
opportunity in the world.
6
NEW RESTAURANTS
IN CHINA IN 2013
740