Although China has experienced lower consumer price inflation compared to the U.S. and the E.U., QSRs in China have experienced a decline in patronage due, in part, to rigid lockdowns as a result of COVID infection.

Kentucky Fried Chicken Outlets in numerous areas, including those with lower average income, have introduced the “Super Abundant Chicken Bucket”.  This menu offering comprises 19 small pieces of chicken, including feet, necks and wing tips that are traditionally consumed in homes but diverge from the U.S. 9-piece offering.  The bucket sells at an equivalent price of $4 and is intended for one meal.

This is an example of corporate flexibility demonstrated by management of the Company in China independent of the U.S. One questions how long it would take to implement an appropriate modification to a menu item in the U.S. in response to a change in consumer needs.

First-half FY2022 revenue for YUM China fell by 4.2 percent to $4.8 billion but the bottom line was severely impacted, sinking 55 percent to $183 million compared to the first half of Fiscal 2021.