Eateries in China may want to take a look at what the Yum brand is doing while in China. For the past few years, restaurants in which Yum owns have not been doing well in the Chinese market. Restaurants like Pizza Hut and KFC do not seem to be a huge hit with Chinese consumers. However, Yum considers China to be one of its top markets, thus backing out of the market is something the brand does not want to consider.
Yum has a share of 800 billion yuan in the Chinese market, but has fell in recent years
Instead of giving up, Yum is taking the time to learn what Chinese consumers want from their eating establishments. In this method, the company can learn better what they need to change and how to better fit the needs of every Chinese consumer out there.
In order to do this, Yum has set up a fine eating restaurant in Shanghai, much different from the fast food eateries the brand is known for. This high end restaurant is meant to test different menus and concepts, while getting feedback from Chinese consumers. The principal at China Market Research Group stated:
“ [It is] helpful if you want to go a bit upmarket.”
Which is exactly what Yum is planning to do in China. The CEO of Yum brands, Greg Creed stated that reviving sales in China is their main priority.
The Yum restaurant in question is Atto Primo. However, if anyone had been at this restaurant, they would not know it has ties to Atto Primo, as there is nothing that states this immediately.
With the research Yum will have from their Atto Primo restaurant, the brand is sure to learn what they need to deliver on in order to entire Chinese consumers. This brand awareness is just one of the ways in which businesses are making it work in the Chinese market.