From fast food to fast coffee – Yum is taking on China’s discounter giants

The QSR group is stepping up competition with Luckin Coffee, Cotti Coffee and Lucky Cup with expedited KCOFFEE expansion plans

Yum China is one of the largest quick-service restaurant groups in the world, with more than 13,400 KFC stores and over 4,300 Pizza Hut outlets across China under its management. But, for all the zinger burgers, soy-sauce-seasoned fried chicken and durian pizza served across its sizeable estate, one product category is standing out – coffee.

Shanghai-based Yum China first launched its proprietary KCOFFEE brand as an in-store coffee offer across its KFC stores in 2015, before spinning it off as a standalone coffee shop concept in 2022.

Leveraging the fast-food chain’s large footprint with in-store concessions, KCOFFEE has rapidly expanded, surpassing 2,200 sites in 2025.