Positive signs! Leading F&B chain stores pledge to expand
Leading food and beverage chain stores have pledged ambitious expansion in China after signs of strong recovery in the first half of this year.
Several leading restaurant chain stores and coffee shops have reported strong quarterly earnings thanks to seasonal promotions and the return of foot traffic .
McDonald's China says it's on the right track to nearly double its number of stores to reach 10,000 properties by 2028, with more than 900 new openings this year already, Chief Executive Officer of McDonald's China Phyllis Cheung said during a recent interview.
The company achieved strong results in the first half with a revenue growth rate far ahead of the pre-pandemic level, thanks to same-store sales increases, more attractive product offerings, and easier accessibility.
Currently about half of McDonald's outlets are located in third and fourth tier cities, and higher-tier cities still represent rich growth potential, she said.
A series of promotional activities have been staged to commemorate the sixth anniversary of McDonald's China to change its company name to Jingongmen, or Golden Arches, after Citic, Citic Capital Holdings and the Carlyle Group acquired an 80 percent stake in McDonald's China in 2017.
The rebound of out-of-home expenditure has been evident.
Nationwide, business income of catering and beverage enterprises jumped 21.4 percent from a year earlier, according to the National Bureau of Statistics.
Yum China said it's confident it will achieve 1,100 to 1,300 new store openings this year, and it already opened 655 new stores in the first half of the year.
In the second quarter, total revenues jumped 25 percent from a year earlier, with a 32 percent gain at KFC and 30 percent at Pizza Hut, thanks to same-store sales increases, new unit contributions, and not having the temporary store closures caused by COVID-19 the prior year.
Citing flexibility to handle surges in customer traffic through holiday periods and special marketing campaigns, Yum China Chief Executive Joey Wat said operating profit for the first half of this year already exceeded the entire year of 2022.
Tims China is accelerating network growth by opening new stores in locations such as hotels and convenience stores with a more compact format "Tims Express."
Tims China, exclusive master franchisee of Tim Hortons coffee shops in China, last month opened its 700th coffee shop in the northwestern city of Yinchuan.
In June, system-wide same-store sales jumped 27 percent from a year earlier, driven by increasing customer traffic.
Adopting new store formats such as those within hotels and convenience stores, Tims has maintained its target of opening a profitable network of over 2,750 stores by 2026.
Seventy percent of new locations this year have been franchised with local partners such as convenience stores, real estate agency offices, and appliance stores.
