Yum! Brands Inc. in china

Yum's outlets were brightly lit and had a temperature controlled environment with contemporary décor. They were spotlessly clean and had other facilities like play areas for children. From 1987 on, Yum opened new restaurants in several cities and even entered Tier-II cities in China. Apart from offering the standard American fare, Yum customized its menu to appeal to local tastes by introducing spicy chicken dishes as well as local cuisine. The staff at the outlets were trained in providing the customers with the best service, managing operations well, and keeping the outlet clean. Yum had an efficient distribution channel which ensured the supply of food items and ingredients to all its outlets spread across the country on schedule.

Yum brought into China advanced concepts of operations, as well as a new dining experience. Yum became one of the most successful American companies in China, with its Chinese operations accounting for 16% of the company's total profits in 2005.

According to John Glass, Analyst at CIBC World Markets⁷, "Operating margins (in China) are likely the best in the system, thanks to healthy unit volumes and exceptionally cheap labor. The company also has benefited from a higher proportion of stores in mid-size Chinese markets, where the company gets better rent deals and wields greater clout in the local community."⁸...