A KCOFFEE store in Zhengzhou | Photo credit: Yum China

KFC China will continue to scale its KCOFFEE brand next year after reaching 10,000 KFC stores this month with an outlet in Hangzhou. 
 

The fast-food chain, operated by Chinese quick service restaurant group Yum China, began serving its own-brand KCOFFEE in-store in 2015 and by 2021 was serving approximately 170 million cups per year. 

Seeking to tap into rising consumer demand for convenience, KFC China opened its first standalone KCOFFEE outlet in Shanghai in October 2022 and has scaled the concept to 200 stores. 

KFC China plans to reach 300 bricks-and-mortar KCOFFEE outlets across China by the end of 2024 by expanding into China’s lower-tier cities. 

Approximately 70% of China’s population reside in lower-tier cities, such as Nanyang and Yangzhou, which typically have lower property and living costs compared to large tier-one cities, such as Beijing and Shanghai. 

KFC China General Manager Warton Wang told World Coffee Portal that the business could also deploy KCOFFEE coffee trucks and pop-up kiosks at street markets next year to further raise brand awareness. 

KCOFFEE is expected to achieve 30% sales growth this year ahead of double-digit year-on-year growth in 2024. KFC China currently has a presence in over 1,900 cities and plans to open more than 1,200 stores annually over the next three years.