Yum China aims to build 600 new stores each year with long-term potential for 20,000 outlets in the market. However, Pant said the focus for now would be squeezing more out of its existing 7,300 stores—even if this meant slower expansion.
“We took about $150 million of capital this year and transferred it, instead of building new units, to refurbishing our existing stores,” he said. This has included installing cashless payment systems, efficient LED lighting and digital menus.
Pant added Yum China was likely to attract more investors from Asia, while the traditional U.S. investor base for Yum Brands might be more cautious about the higher risks. One positive, though, was China’s stable political environment compared with other parts of the world.
“Look at the United States. They’ve got an election coming up in a week and no one knows what’s going to happen—that’s the biggest risk of all. At least we have stability here,” he said.