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[美文] Yum won't chicken out from expansion

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Yum Brands Inc, the owner of the KFC and Pizza Hut restaurants, said on Thursday it will maintain the pace of its expansion in China despite the tainted chicken scandal.

"Yum said it would open 700 eateries this year. We have no change to this plan," said Sam Su, chairman and chief executive of Yum China.

In July, the fast-food giant based in Louisville, Kentucky, said its second-quarter earnings fell 15 percent as a result of decreasing Chinese sales caused by the country's bird flu outbreak and the effects of a food safety scandal.

According to the parent company of Taco Bell, KFC and Pizza Hut, same-store sales in China, which generated more than half of its total revenue last year, fell 20 percent in the second quarter, including a 26 percent decline at KFC but 7 percent growth at Pizza Hut.

"Business in China has been picking up gradually," said Su, as Yum's same-store sales decrease in China narrowed from 19 percent in May to 10 percent in June. Su said he believes China sales will turn positive in the future as the company made food safety a top priority.

At the end of last year, Shanghai's food regulators said eight batches of chicken supplied to the company by Liuhe Group Co had excessive levels of antibiotics. Yum said it stopped all supplies from Liuhe in August 2017, but its China business has been greatly affected since then.

To help ease the dropping off of business and win back brand confidence, it announced new quality-assurance measures in February.

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