Delivery sales at the brand grew 33% year-on-year and contributed roughly 55% of total sales, up from 43% last year, parent company Yum China reported Wednesday.
Yum China’s total same-store sales were flat, although new restaurants pushed sales up 4%, and its operating profit grew 12% to $447 million. Food delivery in China has become intensely competitive over the last year, with e-commerce giants Alibaba and JD.com aggressively pursuing market share by offering coupons and discounts on products across menus, from ice cream and takeaway coffees to KFC’s fried chicken.
So-called “instant retail” – goods delivered within the hour – has drawn scrutiny from Chinese regulators who have repeatedly warned against race-to-the-bottom competition among food delivery firms.