As a leading restaurant company in China, Yum China attaches great importance to Wuhan and the development of China’s Central Economic Circle. With the outbreak of COVID-19 at the beginning of the year, Yum China was quick to express its concern and offer support to the Hubei provincial government. The pandemic further strengthened the determination of both parties to reach a framework agreement that will support Hubei’s post-pandemic recovery and high-quality economic development.
“Hubei has shown admirable resilience in its efforts to combat COVID-19, and Yum China hopes to contribute to the region’s post-pandemic economic development,” said Joey Wat, CEO of Yum China. “Leveraging the distinct advantages of our supply chain, we will increase investment and support the introduction of innovative business models throughout Hubei. Yum China will also support Hubei to upgrade its modern service industry and accelerate the establishment of an industrial hub in Central China.”
As part of the agreement, Yum China will utilize its extensive supply chain advantages and resource aggregation capacity to encourage its upstream and downstream business partners to invest in Wuhan. Yum China will also leverage its nationwide network of over 10,000 physical stores and powerful digital ecosystem to increase procurement of eligible food ingredients from Hubei, creatively develop and promote local produce, and contribute its deep expertise and knowhow to the formulation of local catering industry standards.
Yum China has been active in Hubei for many years and both KFC and Pizza Hut have opened themed restaurants that celebrate the unique local culture of Hubei. To support the recovery of Hubei’s cultural tourism, more themed restaurants will be opened, with some located at historic and cultural sites. In another collaboration, Pizza Hut joined hands with the time-honored Hubei brand Cai Lin Ji in July to jointly launch “Grilled Crayfish Hot Dry Noodles”, a tribute to the traditional food culture of Hubei.
Yum China is also committed to supporting talent cultivation in Hubei by increasing recruitment and providing work-based learning opportunities for students to encourage more college graduates to build their career in Hubei. KFC has been carrying out talent recruitment programs in Wuhan for many years, including cooperating with nearly 20 local universities. Yum China will also expand its existing “Mom Restaurants for Little Migratory Birds” Corporate Social Responsibility (“CSR”) program in Hubei to offer priority job opportunities to mothers of migrant children who wish to work closer to their families.
This agreement reaffirms Yum China’s commitment to supporting the long-term development of Hubei on multiple levels. In this spirit, Yum China has already introduced its signature CSR and sustainability program – the One Yuan Donation program – to Hubei, in partnership with the China Foundation for Poverty Alleviation (CFPA). Following the outbreak of COVID-19 in Wuhan earlier this year, Yum China made additional donations to Hubei, equipping schools with modern kitchen equipment to safeguard the food safety and nutrition of children in underprivileged areas.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “will,” “should,” “forecast,” “outlook,” “look forward to” or similar terminology. These statements are based on current estimates and assumptions made by us in…