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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

Photo: Kilian Murphy

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.

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