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posted: 12/6/2012 2:09 PM

KFC, Pizza Hut expanding to China's smaller cities

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  • After establishing itself in China's biggest cities in recent years, Yum Brands Inc. is focusing on populating the country's less urbanized regions.

      After establishing itself in China's biggest cities in recent years, Yum Brands Inc. is focusing on populating the country's less urbanized regions.
    ASSOCIATED PRESS

 
Associated Press

NEW YORK -- The owner of KFC and Pizza Hut is bringing its fast-food menus to new parts of China, with plans to set up shop in smaller cities throughout the country.

After establishing itself in China's biggest cities in recent years, Yum Brands Inc. is focusing on populating the country's less urbanized regions. Building that infrastructure in those outposts of the developing nation will give it the kind of advantage that McDonald's established decades ago in the U.S., CEO David Novak says.

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Yum, which also owns Taco Bell in the United States, is already the biggest Western fast-food chain in China.

The nation's economic growth has been a boon for Yum but with competition intensifying and economic growth slowing, the company recently hit a snag as well.

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