Against the backdrop of warm sunshine and swaying coconut palms in Sanya Bay, Hainan, Yum China, a leading restaurant operator in China, hosted its grand 2025 Restaurant Manager Annual Conference on November 24. Nearly 11,000 restaurant managers from across the nation gathered to review the company’s achievements over the past year and align strategies to maintain its leadership in China’s dynamic dining market.

Themed "New Momentum, Bamboo Dreams Forward," the conference symbolized Yum China’s resilience in accumulating growth energy amid industry transformation ("New Momentum") and its steadfast expansion, akin to bamboo’s deep-rooted and resilient growth ("Bamboo Dreams Forward").

CEO Joey Wat unveiled the company’s latest performance highlights: net new store openings surged by 1,119 in the first three quarters of 2025, bringing the total store count to over 17,000. System-wide sales grew by 4%, while operating profit rose 9%.

**KFC and Pizza Hut Lead Expansion** KFC maintained robust growth in 2025, leveraging multi-format synergies, operational efficiency, and delivery enhancements. By Q3 2025, its store count exceeded 12,000. Digital transformation, membership programs, and product innovation further cemented its fast-food dominance.

Yum China’s "Side-by-Side" expansion model also propelled new brands: K Coffee surpassed 1,800 stores, while KPRO, a health-focused concept, debuted over 100 outlets in 20+ cities within a year.

Pizza Hut accelerated growth, achieving 17% same-store transaction growth in Q3—marking 11 consecutive quarters of gains. Its China store count surpassed 4,000, with the latest 1,000-store leap taking just over two years—far faster than the 33 years for its first 3,000 stores.

Lavazza, another growth driver, now operates 118 stores in China, blending Italian heritage with local innovations like KAFA coffee beans and buffalo milk lattes.

**RGM 3.0 Strategy: Targeting 30,000 Stores** Amid industry challenges, Yum China’s Resilience, Growth, and Moat (RGM) strategy evolved to RGM 3.0, emphasizing innovation, efficiency, and layered front-end diversification with integrated back-end resources.

Wat outlined ambitious goals: 20,000 stores by 2026, 25,000 by 2028, and 30,000 by 2030. KFC aims for 17,000+ stores and RMB 10 billion operating profit by 2028, while Pizza Hut targets 6,000 stores by 2028 and doubled profit by 2029.

**People-Centric Growth** Employee development remains central. Yum China enhanced training, recognition programs (e.g., "Jade Bamboo Awards"), and career paths, earning global accolades like TIME’s "World’s Best Companies" and "China’s Top Employer" for the seventh consecutive year.

As the conference concluded, Yum China’s bamboo-inspired journey—rooted in resilience and upward momentum—propels it toward its vision of becoming the world’s most innovative dining pioneer.

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