Reuters recently reported that global fast-food giant Yum Brands is looking to grow in the field of upscale dining to combat losses in China. Yum Brands may own KFC, and a number of other fast food chains, but the company has been focusing on its efforts on a small trendy eatery called Atto Primo, located on the Bund in Shanghai. The company sees Atto Primo as a “lab,” for entering the upscale dining market in China.
The Chinese market is Yum Brand's largest source of revenue. Yum has nearly 7,000 restaurants, but its profits recently took a hit in the last quarter of 2014. Yum's 16% drop in profits was due to a mixture of food scares, increasingly intense local competition, and KFC's decline in popularity with Chinese customers.
Yum's brand stategy in China does not just revolve around opening higher end spots; the company plans to open 700 new fast food restaurants in China this year and add more coffee offerings in the menu in order to better compete with Starbucks.
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Keywords: China KFC China Yum Atto Primo
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I have never seen seen any restaurant in China that would rank as upscale or high end. the prices sometimes have been there but they are always let down by the little things like lack of service, quality of food and cleanliness in some expensive restaurants
Apr 14, 2015 22:29 Report Abuse