百胜中国-YumChina

As an important participant of the restaurant industry, Yum China actively leverages its influence to foster high-quality supply chain collaboration and uses intelligent technology to improve efficiency and quality. At the same time, we integrate regional specialties into our product innovations, consistently leading and contributing to the sustainable development of the industry.

Driving High-Quality Supply Chain Collaboration

With Yum China's dual focus on innovation and efficiency, a professional and efficient supply chain is increasingly becoming a critical enabler of our business. We are committed to promoting innovative business models and building a fully digitalized supply chain system, while collaborating closely with our partners to create a more resilient supply chain.

Connecting Globally, Winning Together

We pursue a diversified sourcing strategy and actively participate in major events such as the China International Supply Chain Expo to expand global supplier engagement. Our digital supplier recruitment platform is open to suppliers worldwide, offering standardized onboarding and transparent evaluation processes that provide small- and medium-sized suppliers with equal opportunities.

Local Empowerment, Flavor Innovation

We deepen local procurement by integrating regional specialty ingredients into product innovation, crafting distinctive flavors while supporting local suppliers. Examples included KCOFFEE's Yunnan Rose Milk Fan Latte (featuring heritage Yunnan milk fan cheese paired with single-origin beans from Pu'er) and Frozen Pear Shake Americano with Northeast Chinese Style.
In July 2025, Yum China, together with supplier partners and other stakeholders, launched the "Yum China HEGENG Plan." The initiative uses the supply chain as a bridge to build an ecosystem involving government, companies, research institutions, media, and consumers—jointly tracing quality roots, building trust ecosystem and driving industrial growth.

Digital Intelligence Drives Logistics Efficiency

To support its ongoing business expansion, Yum China leverages intelligent technologies to optimize logistics network performance, centering operations around restaurant service needs and connecting thousands of cities and towns nationwide for seamless and high-efficiency delivery.

1. Smart Warehouse Management ：

We actively embrace "Internet+" technologies and have piloted the deployment of advanced automation equipment, including four-way shuttle dense storage systems, Automated Guided Vehicle (AGV) intelligent transport robots, and Automated Storage and Retrieval Systems (ASRS). These initiatives have significantly improved the efficiency and accuracy of warehouse picking and sorting operations.

2. Intelligent Logistics System ：

We have also piloted an AI-powered route planning system that integrates real-time traffic conditions, order distribution, fleet status, and other data to dynamically generate the optimal delivery routes. By substantially reducing empty miles and transfer dwell times, we have effectively improved transportation costs while ensuring on-time delivery to stores. This has significantly enhanced the overall responsiveness and agility of our supply chain.

3. Building Yum China Industrial Parks ：

To strengthen supply chain performance, we continue to develop Yum China Industrial Parks. This highly integrated approach creates synergies and reduces logistics costs. We have already established logistics centers and fresh-cutting centers, and we are upgrading them into "three-in-one" industrial parks that combine logistics, vegetable fresh-cutting facilities, and bakeries in a single location. This setup integrates upstream shortshelf-life production (baking and fresh-cutting) with multi-temperature smart warehousing, shortening distribution distance, enhancing product freshness, and boosting overall operational efficiency.

Yum China HEGENG Plan—Deep Collaboration, Ecosystem Co-creation

In July 2025, Yum China, together with supplier partners and other stakeholders, launched the "Yum China HEGENG Plan." The initiative uses the supply chain as a bridge to build an ecosystem involving government, companies, research institutions, media, and consumers—jointly tracing quality roots, building trust ecosystem and driving industrial growth.

Under the theme "Tracing Quality Origins," the plan collaborates with experts, media, and suppliers on public health education. At the 2025 Supply Chain Expo, KFC released the documentary Tracing the Journey of One Great Chicken Bite, documenting experts' visits to modern farming operations in Wuyi Mountain, Fujian, translating technical production knowledge into accessible food safety education to raise public awareness and trust.

"Building a Trust-based Ecosystem" focuses on creating a collaborative network anchored in mutual trust. At the plan's launch event, Yum China hosted the "HEGENG Friends Sharing Session," where representatives from suppliers of chicken, potato, dairy, and other categories discussed "The Way of HEGENG—From Supply Chain Collaboration to a Shared Value Community." Participants shared multiple cases of collaborative innovation. For example, Yum China has worked closely with its chicken suppliers over the long term to advance independent breeding and full supply chain traceability. It has also developed circular agriculture projects with domestic frozen French fry producers that increase farmer's incomes while reducing environmental impact through potato peel composting.

"Developing the Industry Together" is our long-term vision for the supply chain ecosystem. We promote innovative models to build an open, symbiotic, resilient, and sustainable supply chain ecosystem.

Leading Industry Ecosystem Development

Yum China recognizes that industry progress depends on collective efforts from all stakeholders. Therefore, we hold important roles in the industry organizations including the China Cuisine Association, the China Institute of Food Science and Technology, the China Chain Store & Franchise Association, and the China Animal Agriculture Association. We also participate in specialized research groups, subcommittees, industry forums, and discussions on food safety hotspots, contributing insights to shape regulations and promote the healthier development of the food and restaurant industry. In 2025, we joined the China Meat Association's Poultry (Egg) Industry Branch, further deepening our industry collaboration. On the international stage, since joining GFSI more than a decade ago, Yum China has continuously adopted and promoted global best practices.

In 2025, Yum China contributed suggestions to 16 national food safety standards, industry group standards, and regulations under development. Our input focused particularly on key areas such as accountability for food safety, product processing procedures, and safe practices for restaurant delivery operations. We were honored to receive the "2024-2025 Food Safety Innovation Case Collection—Case Support Organization" at the 2025 Consumer Goods Forum China Day.

At the China Chain Store & Franchise Association Food Safety Committee's 2025 Annual Meeting and Food Safety & Quality Promotion Forum held in September 2025, Yum China presented on "A Shared Win-Win Supply Chain Ecosystem." We shared our work in strengthening supply chain resilience, including end-to-end food safety management, food safety culture building, supplier collaboration and empowerment, and digital food safety platform development. The presentation highlighted our continued commitment and leadership in driving industry co-governance and elevating overall food safety standards.

Industry Development