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How Yum China is tapping into value-focused and premium coffee consumers alike

A KCOFFEE store in Yingcheng, Hubei province | Photo credit: Yum China 

Established in 2016, Yum China has built China’s largest quick service restaurant portfolio with more than 14,000 licensed outlets across six brands, including KFC, Pizza Hut and a joint venture with Lavazza. Today, the group is harnessing the vast potential of China’s booming coffee market with a two-pronged strategy tapping into the value-focused and premium segments. Warton Wang, General Manager for KFC China, and Adrian Ding, Yum China’s Chief Investment Officer and General Manager for its Lavazza joint venture, speak to World Coffee Portal about leveraging the power of coffee across its extensive out-of-home network 

In a bid to expand KCOFFEE in lower-tier cities, Yum China explored a ‘side-by-side’ store format before launching its first dedicated KCOFFEE outlet in October 2022 with a To-Go store in Shanghai. 

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