We have formulated and adhere to the Yum China Responsible Marketing Policy. We are committed to maintaining integrity in our marketing practices, avoiding making exaggerated or unsubstantiated claims about the positive social or environmental impacts of our products and services. To ensure our marketing communications comply with laws and Yum China policies, we have established a Marketing and Communications Committee comprising teams from Food Innovation, Food Safety, Legal, Marketing, and other functions, to regularly review our marketing communication contents. Additionally, we provide ongoing responsible marketing training to relevant employees, keeping them informed about the latest review requirements and updates on changes in laws and regulations.
Yum China attaches great importance to protecting intellectual property (IP) and strictly abides by IP-related laws and regulations. We have tailor-made an IP protection system compatible with Yum China's institutional characteristics to safeguard our brands and reputation. We promptly apply for protection of our IPs and oppose vigorously any infringement of our rights through digital empowerment.
WAs the largest restaurant company in China, Yum China serves over 2 billion customer visits annually. We prioritize customer satisfaction, actively listening to our customers' voices. We regard customer satisfaction as one of the crucial criteria for assessing store performance, and have established a multi-tiered customer complaint resolution mechanism, clearly defining the responsible parties and response time standards. Additionally, we leverage AI technology to ensure timely and effective response to consumer feedback. Moreover, to better serve our customers, we reduce the burden on RGMs by simplifying, centralizing and automating key processes in restaurant operations, enabling them to focus on delivering service excellence.
We are dedicated to leveraging digital technologies to gain swift insights into customer behavior and respond promptly to consumer needs. In addition to our self-developed Customer Experience Survey System (GES) and Customer Service Platform (CSP), we launched the Yum China Consumer Insights Platform in 2024 to further expand the channels for collecting customer feedback. This platform utilizes Generative Artificial Intelligence (GenAI) to efficiently summarize customer feedback with hourly updates on the day of launch of specific brand activities. This assists business units in promptly identifying issues and implementing improvement measures. Currently, our AI-powered customer service handles over 150,000 consumer interactions daily. In terms of humanaided support, AI-assisted customer service can swiftly categorize and summarize consumer needs, aiding customer service representatives in responding more quickly and accurately, thereby increasing overall efficiency by 10%.
Yum China places significant importance on digitalization as a
vital driver for supporting our business's resilience and
long-term development, and strives to construct a robust digital
ecosystem.
We continuously invest in industry-leading digital infrastructure
to reinforce our business moat and have inaugurated a Digital R&D
Centers with offices in Shanghai, Nanjing, and Xi'an. Our
dedication to exploring and implementing innovative digital
technologies, such as big data, AI, and intelligent interaction,
remains steadfast. These technologies are fully integrated into
our business scenarios to optimize customer experience and promote
sustainable business growth.
and Products
To improve Super Apps, mini programs and membership programs to provide higher quality service and customer experience
To upgrade systems and tools for more efficient operations and decision making, such as our digital tools for restaurant general managers, 'Pocket Manager' and 'Super Brain'.
To further optimize delivery order queuing, trade zones, and rider routing
To enhance food safety and streamline operations from farm to fork
In addition, we strive to constantly transform the traditional perception of the restaurant industry and redefine a new generation of restaurants with digital tools and technologies. Our primary focus is to leverage these tools to improve our operational efficiency. We launched the 'smart delivery in earnings' system in 2022, which adjusts the delivery range of individual restaurants based on their operating hours to maximize delivery efficiency. KFC also recently launched a smart order system, effectively reducing customer waiting times.
Mechanism
Platform
System
Yum China Compliance Oversight Committee (the "Compliance Committee") is responsible for assisting the Board and Audit Committee in overseeing the Company’s cybersecurity risks. The Compliance Committee meets regularly to discuss legal and regulatory developments on cybersecurity, assess the Company's emerging cybersecurity risks and mitigation plans, and determine strategy to promote cybersecurity compliance.