Yum China enters the boutique coffee market COFFii & 喜悦 first appeared in Yum China Financial report

Recently, Yum has vigorously promoted the boutique coffee COFFii & 喜悦, and the boutique market is a new attempt of Yum China in the coffee market.

Yesterday, Oct. 31, KFC and Pizza Hut parent Yum China released three quarterly reports, showing that Yum's total revenue in China rose 4% year-on-year to $2.2 billion, while net income rose 15% year-on-year to $203 million.

In addition, it is worth noting that COFFii & 喜悦, a coffee brand owned by Yum China, also appeared in Yum China earnings report for the first time.

Yum China's third quarterly report showed that Yum's profit margin in China fell to 17.6%, compared with 18% in the same period last year, the report said. this is mainly due to the deleveraging of same-store sales of Pizza Hut and product upgrading and promotional investments of KFC and Pizza Hut. Yum China same-store sales rose 1% year-on-year, KFC up 1%, and Pizza Hut fell 5% year-on-year.

Including KFC, Yum China also owns Pizza Hut, Little Sheep, Oriental White and TacoBell and other brands. Yum China CFO said that by expanding into third-and fourth-tier cities, once consumers remember and recognize its taste, it can create a pre-emptive advantage, occupy consumers' minds and create barriers for later competitors.

Yum China has opened six COFFii & 喜悦 coffee shops in Shanghai, Nanjing and Hangzhou, and will also open COFFii & 喜悦 stores in Beijing next year, according to Yum's three Quarterly reports.

At present, COFFii & 喜悦 has opened three stores in Shanghai. According to the menu posted by netizens on the review website, COFFii & 喜悦 's products are mainly coffee, desserts and light foods.

China's coffee consumption market has a lot of room to rise. Yum China obviously wants a piece of the caf é when it opens this time. The financial report shows that in the past few months, six COFFii & 喜悦 coffee shops have made good progress, but they are still in the exploratory stage.