Our ability to innovate is an important pillar to capture growth opportunities. Even in conditions like this, we don't stop delighting our customers with innovative food and value campaigns. These initiatives partially offset the reduced dining services. This has more than doubled the sales compared to last year. Also, excitingly our new retail package with sales reached CYN 200 million in the second quarter. Delivery grew 7% year over year and reached a record sales mix of 38% in the second quarter.Ĭombined with pick-away off-premise signing contribute to almost two-thirds of sales.
We also focused on driving off-premise sales. We were thrilled to bring joy to our customers lives during an exceptionally hard time and to see their social media posts. Who would have thought that we chose Psyduck just to accommodate our reduced advertising budget? The results were phenomenal. The sensational buzz from this campaign drove almost 20% of sales in the first two days of the promotion. The Psyduck toy instantly went viral, becoming a smash hit with children and adults alike. Some of you may remember the Psyduck Koduck and other Pokémon meal companion toys we launched around Children's Day on June 1. The tool is optimized with a delivery route covering a wide geography well beyond our usual store base vicinity radius.Īcross the country, we always faced a challenging operating environment without advertising and promotions to save costs. In just a day's time, our stellar IT team launched an AI-enabled delivery route planning tool for community purchasing in Shanghai. Digitization also played a very critical role. We obtained the necessary permits and managed the most - the majority of Shanghai under severe mobility restrictions. We were able to continue serving our customers, thanks to our in-house, and agile supply chain management system as well as dedicated last-mile delivery riders. In May, with less than half of our stores open, we reached pre-lockdown sales level. In the Q1 earning call, I share that with 10% to 15% of the store open in April, Shanghai achieved 40% to 50% of pre-lockdown sales. We launched community purchasing pongo as early as mid-March, including packaged food products, not just for KFC and Pizza Hut, but also for emerging brands, Lavazza, Taco Bell, and Little Sheep. Fried chicken was perhaps one of the most desired food items in Shanghai during lockdown and brought our customers great happiness. At the extreme, we just have one bucket of fried chicken on the menu, one item on a menu and that's it. With simplified menus, where you reduced complexity of operations and inventory management.
During the city lockdown in Shanghai with very limited restaurant staff and riders, our goal was to sustain minimum level of restaurant operations and serve desired food to customers. Let me share with you some of the measures we implemented to overcome considerable operational difficulties. Our resiliency shines brightest in tough situations. During this trying time, we continued to execute our RGM strategic framework that is resiliency, growth, and moat. These solve not just the imminent problem but can serve as our learning base to make us more agile and resilient for the longer term. We have innovated new menu offerings, delivery, and digital solutions, as well as cost optimization initiatives. Through it all, we have stood firm and built the business stronger in so many ways. We operated with our Shanghai headquarters under lockdown for over two months and still managed to execute with extraordinary agility, quickly forming cross-functional, and cross-brand crisis management teams, while we developed flexible tool kits to tackle each problem as they arose. I'm both glad and honored to fight the battle alongside a wonderful Yum China team. We kept our morale high and came together to deliver better than expected results. ©2012.We also want to bring joy to our customers. ® and indicate trademarks owned or used under licence by Pizza Hut International, LLC. For large (8 slices) Thin Italian add 50cal, for Large Pan add 70cal, for large Stuffed Crust / Cheesy Bites add 100cal. For regular Pan add 20cal, for regular Stuffed Crust / Cheesy Bites add 60cal. * Calories shown are per slice on a regular Thin Italian (6 slices). Your selection of toppings and ingredients may alter the calorie value. Calorific data is based on Pizza Hut portions and formulations as of date of printing. Pizza Hut products are prepared by hand in our kitchens and therefore up to 20% variation in calorific data can be expected. UK recommended guideline daily allowance for men is 2500cal, for women 2000cal and for children (5-10 years) is 1800cal. Child price applies to persons 12 or under.