KFC plans China revamp to revive sales following food scandal

Yum Brands (YUM) unit KFC intends to overhaul its menu in China, launch a marketing campaign involving celebrities and digital initiatives, and revamp its restaurant design as part of an attempt to escape the effects of a food scandal that has hit sales for well over a year.

Yum, which generates a large part of its revenues in China, intends to open 700 stores in the country in 2014. (PR)

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Comments (3)
  • haiguike
    , contributor
    Comments (939) | Send Message
    KFC is losing popularity in China. Consumers not only demand food safety, but they want the lifestyle as well. KFC may do well in 3rd and 4th tier cities, but the brand will no longer thrive in 1st and 2nd tier cities.
    27 Mar 2014, 04:41 AM Reply Like
  • chopchop0
    , contributor
    Comments (5268) | Send Message
    Short the stock? At least disclose it
    27 Mar 2014, 07:08 AM Reply Like
  • haiguike
    , contributor
    Comments (939) | Send Message
    If you're a retail investor, stay on the sidelines. There are better long term values out there, but I would certainly not short YUM.


    Even if KFC's food supply chain improves, there are local brands emerging from a new generation of young Chinese entrepreneurs and owners. They understand the importance of branding, quality and lifestyle. Go to any tier 1 or tier 2 city during heavy traffic and you will still find many vacant seats at KFC. Pizza Hut is still doing well, but given the food is really bad, I can't see this being sustainable for too long. Better alternatives will arise for that niche market.
    27 Mar 2014, 07:23 AM Reply Like
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