Hello, ladies and gentlemen. Welcome to Yum China's 2025 Investor Day. My name is Florence Lip, Senior Director of Investor Relations. We have a full agenda today. This morning, our management team will present our latest strategies, followed by a store visit in the afternoon. Some of our management will present in Chinese. Simultaneous interpretation from Chinese to English will be available. For our guests here in Shenzhen, if you need a headset for the translation and haven't got one, please raise your hand, and our staff will assist you. For our online audience, you may also choose the appropriate channel by following the instructions online. Our Investor Day presentation contains forward looking statements, which should be considered in conjunction with the cautionary statement in our presentations and the risk factors included in our filings with the SEC. Management presentations will be uploaded to our IR website after each session. Without further ado, let's get started.
Yum China has a legacy spanning over three decades, beginning with China's first taste of Western fast food. Today, we are a beloved part of everyday life, bringing delicious moments to millions of consumers. We remain committed to providing consumers with flavors they love while catering to their diverse needs. To that end, we continue to refine our store models, from the ongoing store optimization to new format development, driving synergistic growth. From shaping tastes in China's trendsetting Tier 1 cities to building a strong consumer base in lower-tier markets, we're broadening our market reach. We welcome our franchise partners with openness and shared ambition. By exploring more channels, we are expanding our store network nationwide. Guided by consumers' evolving needs, we're building a business model that moves faster, thinks smarter, and delivers more. We integrated our physical stores into our app, launching a seamless AI-powered ordering experience. We move with the times while staying true to our roots. In a changing world, we breathe new life into our timeless classics. We capture the pulse of the market, embrace new ideas, we expand category boundaries to meet evolving demands and stay in step with the latest consumption trends. Our deep insight into customer mindsets enables us to offer great value for money. We tap into the pop culture dynamics of diverse consumer segments and build connections in youthful ways, shaping a fresh influence that's uniquely Yum China. We are continuously upgrading our intelligent supply chain system, ranging from integrated industrial parks to automated warehousing technologies to reduce manual operations and drive greater operational efficiency. At the same time, we're embracing the era of AI and digital. We leverage intelligent site selection to drive precision in store expansion and our next-gen tools such as Q-Smart to amplify store efficiency. With genuine care for our people, we foster unity and shared purpose. Every employee is our partner in success. From meaningful benefits programs to team-building experiences, we've built a Yum China family that grows together. Looking ahead, we maintain our dual focus on innovation and operational efficiency, strengthening resilience and competitiveness of our business to achieve sustainable long-term growth.
Good morning, everyone. Let's try again. Good morning, everyone.
Good morning.
Thank you. Thank you. Very good morning and very big welcome to all of you to Shenzhen. It's a city of energy and speed and innovation. After two years, it's truly wonderful to see so many of our investors, shareholders, and everyone who loves our company come all the way to Shenzhen. Those online, welcome as well. Heartfelt thank you to all of you. In addition to that, heartfelt thank you to our employees, our customers, shareholders, and everyone. We have about 40, 45 minutes here for my session, and I would like to focus on three things. First is to have a very brief recap of what we have achieved together, particularly since 2016, since when our listing in NYSE started. Second, our beliefs or philosophies. I'll talk about why we go there. Then the third is our strategic priorities or our strategy for the next three years and beyond. Three things. Let's have a recap of our journey in China. Many of you might remember this chart. We shared that in the last Investor Day back to 2023. This is like the journey, right? The GDP growth rate and then our new store opening. It's quite cool to look at. It took us 33 years to build the first 10,000 stores, but then it's going to take us another just six years to get to the next 10,000 stores. Last time when we were here, we were at 13,000 stores. Then we set a target of 20,000 stores by 2026. I'm happy to report to all of you that we believe that we can get there next year. Before I go to the next slide, I would like to also point out that the China market, as you can see, has been very dynamic. The position of the top 10 players in our market has been dynamic. The next slide is to show how our market position by system sales evolved during 2016 to 2024. Simon, please. I don't know whether you can see the movement. For the top 10, the positioning of the top 10 has moved quite a bit, except the top one, and that's us. For nearly a decade, we have stayed firmly at the top as China's largest restaurant company by system sales, well ahead of our competitors year after year. Someone funny summarized this chart saying that 你大爷还是你大爷 which roughly translates to the champion still champion. I know for those people who understand the Chinese thing, it's not exactly that translation, but you got the idea. Our leadership in the marketplace has translated into proven track record from top line to bottom line. Look at the system sales 2016 to 2024. Over nine years, system sales grew by 60%, 1.6x. Margin expansion happened as well, given our scale. Then the operating profit increased 80%. These are all three dimensions that we have delivered. In our industry, we call these three dimensions, the combination of three, called impossible triangle. Because if you develop one, the other one suffers. To improve on all three dimensions, it is a bit challenging, but we have done it. Building on this result, our dilute EPS has increased by 70% since listing and delivering, of course, more value to our shareholders. But this is pretty much a recap of our past, very quick. Then I'm going to talk about the philosophy or beliefs. The question is, why? Why bother talking about philosophy and belief? Why not go straight to the strategy bit? Over the years, I met a lot of investors and shareholders. Some wise ones asked me very good questions, focused on what I believe, what management believes. Because whatever strategy that we put together actually is indispensable from our philosophy and belief, particularly during the tough time, such as the pandemic and many other challenges. You guys seem pretty wise to me today, all of you here and online. I thought it would be good to talk about our fundamental belief behind the strategy so that you really understand management's thinking in a very deep and core level. First belief is our commitment and belief in value for money. Very sharp value for money. Of course, some of you guys asked me, what has been the secret recipe to deliver profitable growth in the short term and long term? Well, in a simple way, sometimes it's not only about what do we do, but what did we not do. From this chart, you can see the price index has a very simple calculation. It's our sales divided by how many items we sell. That's the average price of the product we sold in both brands. We did not really price inflation in the last nine years. It does not mean that we did not increase price. The way that we do it, we expand the price point. We come up with new products so that we still deliver the transaction growth. You can see 40% transaction growth and almost 90% transaction growth for Pizza Hut while expanding the operating profit. But is this the best way to describe value for money? Not really. There are some Cantonese-speaking people here. I'll tell you my favorite way to describe value for money, Pan Lai Zheng. Let me do some translation here. I'm not sure that some of the Chinese translator can translate Cantonese here. Good price, amazing quality, and authentic, all three at the same time. That is value for money, Pan Lai Zheng. See, many of the Yum China employees actually know these three Cantonese words. I love Cantonese. It's very, very vivid, so beautiful language. But for value for money, we have slightly different take for KFC versus Pizza Hut. For KFC, we have kept it relatively steady. By having a relatively steady price or ticket average or a price index, we deliver more value, new product, emotional value. For Pizza Hut, we have gone very aggressive. The price index now is only 70% of what it used to be nine years ago. Thank God we did it. If we did not do it over the years, we'll be in a much tougher position today. We have anticipated that since 2016, when we decided we're going to be very, very sharp on value for money. Because it, of course, has some history behind. Ten years ago, both KFC and Pizza Hut, we were in a sort of turnaround situation. In the turnaround process, we have learned this is critical. We need to commit to it. It's easier said than done. I mean, everybody can want to do it, but whether you can transform all aspects of the company to deliver the extra value, extra profit for the shareholder while keeping the price very reasonable, that's the tough bit. But it's a must, and we have done it. In Chinese, we also call it Ding Jia, just as Jin Ying, Ding Jia, Ding Shen Shi. Pricing or value for money determines survival. But it's just part of the story. What is our second belief and second philosophy? A company like us, of course, we challenge ourselves thinking about how to grow and grow faster, grow stronger, even with our current big scale of business. Well, our commission comes from building a strong foundation, just like how bamboo works. We find inspiration in it. Well, what are the reasons? One of the reasons is I'm from Fujian. I grew up in a hometown where my parents' house was at the bottom of a hill, and in the hill, there's a big bamboo forest. You know, of course, it impacted me. That's my background. There are a few things about bamboo that you might or might not know. You can use the AI to look for more facts later on. Little do some people know, before the bamboo shoot breaks the ground, it actually took years, three to five years typically, to grow a very sophisticated root system underground, in darkness and interconnected underground when you cannot see it. Then when it's done with a little bit of water, it grows rapidly. It breaks the ground, it grows rapidly. How rapid? Bamboo can grow up to one meter a day. Then it grows to several meters. It flowers, then it starts growing taller, then it starts to grow wider. Within a very short time, we can think about bamboo within months, or if not a year, it'll become a forest. Bamboo never stands alone. It always grows as a forest. Once a forest, it can endure storms with resilience. I think as smart as you are, you know where I'm going, what I'm talking about already. The interconnected root system represents our core competency under the soil. The procurement, food innovation, food safety, you name it. Interconnected, but strong and solid. Therefore, with the strong foundation, it fuels the growth of our emerging business like K Coffee, K Pro, Lavaza, Pizza Hut Bao. These businesses are breaking through the ground right now. Once they do, they do grow fast. The third philosophy, our ultimate belief. By the way, if I have to pick one out of the three, this would be it. People first. People first. People first. 重要事情讲三遍。
Important thing we speak it three times. Our gym number one is at the heart of our culture. We stay close to frontline, listen to the voices of our restaurant manager. We empower them through the digital tool like AI automation so that they can focus more on customer service. Beyond competitive pay, we try our best to look after our store manager. Jerry Ding is going to cover more in detail later on about our belief in people. We do take care of them. One example, which we are very proud of, is to provide very comprehensive medical insurance, including their families and their parents. The level of support is so valuable that many RGM joke that they need to get their parents' approval to change jobs. If they change jobs, their parents lose the medical insurance, and they could not find it somewhere else. Simple. Our commitment in talent has been recognized. Yum China, we are very grateful that has been named top employer of China for seven consecutive years, ranking number one in our industry. Let me introduce our management team on the screen. They are sitting here, looking very nice and smart. If I could ask them, stand up, turn around, say hi to our wonderful friends here. Thank you. You will see many of them doing the presentation on the stage later on. We also have Chief Legal Officer Pingping and Chief Development Officer Howard here as well. Feel free to ask them questions. I'm deeply grateful to this outstanding team. I'm very grateful to the team's collective talent, dedication, and leadership. Thank you. Thank you, guys. Now we have covered the three beliefs and philosophy. Let's talk about our RGM strategy for the future. RGM, again, carries a dual meaning. It stands for resilience, growth, and moat. But it's also a simple and meaningful way to honor our restaurant general manager, the most important people to our strategy. RGM 1.0 focuses on resilience. RGM 2.0 places greater emphasis on growth. We are at RGM 3.0. We focus on all three dimensions. We are a little bit more greedy now because we feel that we are ready to have a balanced approach focused on resilience, growth, and moat at the same time. The RGM 3.0 is driven by two complementary forces, the two engines, innovations and operational efficiency. Innovations help us improve operational efficiency in scale. Our expertise in operational efficiency in turn allows us to keep innovating for the future. These two have to happen at the same time. They actually nicely reinforce each other like an infinity loop, maintaining sustained momentum. This is the summary page. Quite an important page and worthwhile to spend some time on this one. With the RGM strategy, what are the operational strategies supporting the RGM strategy? This pretty much covers the rest of my presentation and highlights the theme of all the rest of the management presentation this morning. It's worth spending some time here. In the past, we focused on single-store efficiency. I'm looking at the resilient bit now. Now, as our business has become more diversified, we moved towards what we call front-end segmentation and back-end consolidation. Front-end segmentation to serve customers more effectively, really looking after their needs. But then back-end, we try to have even more efficiency coming out of it. In Chinese, we call it Qian Duan Fen Chen, Hou Duan Zhen He. Second, when it comes to growth, we have a much deeper understanding of our core competencies in the last few years. We now anchor our ambitions around our core brands, particularly KFC and Pizza Hut. Their sub-brands, K Pro and K Coffee Café, and then Pizza Hut Bao, and modules, many smaller modules. It's very flexible. That is one area of growth. The other one, which we started to make the shift last year, we are shifting from mainly equity-driven business towards equity and franchise hybrid model to drive faster and even more efficient incremental growth. Third, we continue to deepen our strategic moat. I will talk more later on. We're evolving from a business-driven, in the past, mainly by physical store to the current one, thriving in both physical and virtual worlds. The last two strategic moats are supply chain. It's becoming more integrated and agile. Last but not least, we are moving beyond digitization. We are currently deploying agentic AI to unlock new levels of efficiency. This is RGM 3.0, more resilient, more innovative, and more efficient and ready for the future. Now I'm going to go to RGM strategy one by one. Starting with the front-end segmentation and back-end consolidation. China is a very, very big market, and the customers have very diverse needs. You can segment the customer needs in so many ways. Here's just some examples by day part, by gathering moments, by channels. IP collaboration is the emotional value. You name it. The list can be very long. But we know that we can serve customers more effectively through the different brands, different modules, different occasions. We can see that from our numbers. Customers like that. These needs are evolving, too. K Pro is a good example. We are in Shenzhen. In Shenzhen, we have more K Pro than any other cities in China. In Tier 1 city, K Pro is a fantastic lighter option with energy bowls or superfood smoothies, capturing the fast-growing light meal market. By the way, the business is particularly good on Monday. Why on Monday? This is about consumer insight. Because for normal restaurant business, Monday is not the busiest day. But for K Pro, it is. Because typically, as human beings, we might have eaten slightly too much over the weekend. Then by Monday, we might feel slightly guilty that we want to have a slightly different choice. By the way, these are all KFC customers. Most of them are KFC customers. We offer different choices with different options at the right time. On the back end, we focus on driving synergies. To this end, we aim to be both best in class, but also best in cost. We want both. Cost and quality. We want it both. How do we do it? We first streamline our menus. Not only menus that customers or you can see in a store, but the ingredients behind that you cannot see. That is also a big saving. That's even more difficult to streamline than the menu that you can see. We also centralize key processes, like centralized recruitment and training, One Stop RGM Service Center. Third, mega RGM synergy and technology. Among all these four, I would say the mega RGM is probably the most significant among all. Because RGM, they are the most important group of people. In the past, we just don't have enough very good RGM to open that many stores. They used to be the biggest bottleneck for us to open new stores. Because when we open new stores, not only do we want new stores, we want good new stores. The best predictor of a good new store is a very good RGM. But now we are at a very nice position that our RGM can manage multiple stores. We don't have the bottleneck anymore. Therefore, we can continue to build more and very good stores. Looking ahead, we are confident. These efforts are paying off. Our operational efficiency has been very strong and will continue to be strong. Here are some numbers. Marketing efficiency, this is again 2024 versus 2016. Marketing efficiency has improved by 55%. Greater scale of our business and very innovating marketing team. They help deliver. Rent. Rent costs as a percentage of company sales has decreased by 170 basis points. That's very nice. Even better, the rent structure is more resilient. This year, about 70% of our new leases for KFC and Pizza Hut stores are variable rent. Flexibility is good. Resilience is good. We build into the structure. That number is a lot less in the last nine years ago. That's for sure. What else? Look at the capex. KFC, overall, per store basis, 35% less. Pizza Hut, even more, 50% less. Of course, it's the result of both smaller stores and innovations. It's a combined result. The key benefit here, which I'm sure you have already figured out, is the sunk costs are even lower. Because for that cost here, it includes the sunk costs and the equipment that we can move. With this kind of number, the sunk costs are even lower. That minimizes the cost of making mistakes, which is important for our size of business. With resilience in place, let's move on to the next topic, growth. I'm happy to report that despite the market dynamics and the concern of macro, we still see China's opportunity remains extraordinary. On purchasing power parity basis, China is the world's largest consumer segment, which is about 1.68 the size of the US. Despite the per capita spending is less, we just have a lot more people. After 38 years, we are still only serving about one-third of the Chinese population. Our midterm goal is to serve half of the Chinese population by 2028. We look at the restaurant industry. It still offers tremendous growth opportunity. People are on the move and going out more often. By 2030, urban residents are expected to dine out 5.5 times per week, up from 3.5 times. Only two more times. But the growth is very nice and very great, very big for the market. In our industry, the chain restaurant penetration is still low. It's only about 20%. It's quite typical to be at 50% in more developed markets like the US. With all this macro opportunity, we see a long runway for the growth ahead, particularly in lower-tier cities. There are two numbers here. This is the KFC store counts, not system sales. Store count share among top five QSR players. In Tier 1 and Tier 2, 25%. System sales-wise, our share will be higher. But our local competitors, their stores are smaller. The store count number is a bit lower. You look at the Tier 3 and below cities, it's only 15%. You might ask, does that mean that Yum China is not doing as well in lower-tier cities compared to Tier 1, 2 cities? I'm very happy to report that. That's probably a fair statement. I'm happy to see that. Why? Potential. Market potential is here. We are not having our fair share of market or store in the lower-tier cities yet. Yet. But now we have an innovative store model. We have really good product. We have good value for money. We have confidence we can do it. For Tier 1 cities in particular, you might already have a question. What if the macro improves a little bit? Can we have a bit more pricing opportunity? I would like to say that that's the upside. That's not built into our model yet. That would be very nice to have. Even if change rates are moving our way, it would be also another upside. But for the lower-tier cities, we see the opportunity there. With the innovation and operational efficiency, we are setting a milestone, a target that by 2030, we want to increase KFC's lower-tier city penetration from 2,500 to 4,500 cities. Almost twice. That's the milestone we set today. With that, Simon, please go to the next page. Yes, thank you. It's time to look at KFC, our flagship brand. It remains a resilient fortress behind our growth. You will not miss the number at the title here. We are aiming for a new milestone, becoming China's first restaurant chain to achieve ¥10 billion operating profit in 2028. This target is grounded in KFC's solid foundation, much like the Lego bricks. I like the Lego bricks. Robust, flexible, always further to build further. Imagination is the ceiling. Not to mention that 80% of my son's toys budget was with Lego, for sure. Fantastic concept. We learn from this amazing company. Even at KFC scale, significant growth potential remains. We continue to reach new customers and unlock new occasions. Like in Morton's presentation later of KFC brand manager, he's going to go through the K Coffee, K Pro, and then KFC small town. I would like to introduce one new concept here, the Gemini store. What is Gemini store? When we open new stores in lower-tier cities right now, we have tested this year. We believe that we have some mileage in this. We opened a pair of stores, KFC store and Pizza Hut store at the same time. Because now with the Pizza Hut vow model, which is perfect for lower-tier cities, they can share the customer. They can even drive the traffic for each other. Today KFC, tomorrow Pizza Hut. We share a lot more equipment, resources, recruiting, everything, management behind the scenes in lower-tier cities that's far away from Shanghai. This Gemini model is just perfect for lower-tier cities. Another simple way to think about it, if you want to have a lot of kids, having one kid at a time is good. But having twins, many twins at the same time, is even better. Simple. Let's move on to Pizza Hut. My humble suggestion is do not underestimate Pizza Hut China. I know there are concerns towards Pizza Hut as a brand around the world. We all have heard the news. But Pizza Hut China, after multiple years of hard work, has reached an inflection point last year. Since then, Pizza Hut is on a surge. Look at the store number. It took 23 years to build the first 1,000 Pizza Huts. Pizza Hut during quarter three this year just reached 4,000 stores. The last 1,000 stores only took two years. That's pretty decent. Again, I'm sure you have seen it already. Right now, Pizza Hut, we are aiming to set a milestone to double the operating profit to more than $310 million from 2024 to 2029. Jeff, Brandy, and Pizza Hut will talk about it a bit more. If you still remember our turnaround journey of Pizza Hut many years ago, we were very clear about our priorities. Sales first, profit later. Now we have the sales and store, Jeff. We are ready for more profit. No pressure. Let's talk about our emerging brands. Emerging brands with a lot of hard work under the soil, behind the scenes, actually are gaining momentum. First, let's talk about Lavazza. Maggie will talk with a presentation on Lavazza later on. Five years of hard work underground, trying errors. Lavazza has built a very solid foundation. There are three facts I want to share with you right now. First, Lavazza this year has delivered double-digit like-for-like growth. We like that, don't we? Second, the stores opened in the last two years have been profitable at the store level. Well done, Lavazza team. Third, the retail business, namely the bean business, the drip business, the concentrate business, they're profitable. It's good scale. The growth is lovely. It's profitable. By the way, we also built a local roasting plant in China behind the scenes without telling too many people. The foundation has been good. We are ready to break the ground and ready to scale with professional coffee positioning. Chinese dining, we went through the journey thinking that the Chinese dining can be also part of the bamboo forest. After a while, we realized it's probably a slightly different species. It's the same thing, but different. It took a bit longer to connect the roots. But this year, we are having this pretty decent breakthrough. Again, side by side, not twins, almost twins, side by side, Huang Ji Huang, Little Sheep, put them together. A lot of synergy we can get out of it. We have some pretty interesting momentum out of it already. But Chinese dining as a sector is struggling a bit more in the current macro situation than the QSR. But some nice momentum and encouraging results so far. Taco Bell, another slightly different little bamboo. But this year, we also see double-digit growth in same-store sales in the first three quarters. This year, we do expect to achieve store-level cash flow break-even for the first time. All going to the right direction, some faster and some slower. But it's very hard for the smaller brand to compete with the two big brothers in the company, namely KFC and Pizza Hut. But they have to keep working harder. I've covered the growth from the brands. What is the second one I have covered earlier? Equity franchise hybrid model as a growth accelerator. We really start to make the shift and determine to focus on that since 2024, last year. There are two focuses for our franchising strategy: lower-tier cities and strategic channels, such as highway stations, tourist locations. Strategic channels typically are those places where it's quite hard to get the site, or even universities or hospitals. These are strategic channels. We now have more than 2,000 franchise stores in our system. We aim for over 5,000 by 2028. In terms of system sales, you can see we are aiming to double the system sales mix by 2028 as well. Our transition to the hybrid model is a strategic evolution granted in decades of experience and learning. Some good learning, some more challenging learning. But they're all good learnings. We have developed innovative store models, and that delivers attractive payback for our franchisee. Without attractive payback, it's just talking. It's not real. What makes this shift so powerful, also so powerful, of course, is the added value that it brings to Yum China. It allows us to deliver stronger return on invested capital over the longer term. It makes our business more resilient, which, again, is nice. That concludes the growth session. Let's move on to strategic moat. I don't know how you feel about that little swipe: KFC, K Coffee, Café, K Pro, and yin yuan zi zai cha, the T concept. Traditionally, we have the physical store. We build stores. That's what we start. But then in the last many years, we actually have also been building virtual space. This concept, many companies are doing it, but it's not very clearly articulated. Let me be very clear today: virtual space to stay relevant with consumers. Why is this so important? Because people, especially the younger generation, younger than me, they live in two different worlds right now, the physical world and the virtual world. Both worlds are important. I'm not sure whether it's equally important or which one is more important than the other, but we have to address that. When we have KFC, K Coffee, and K Pro there, you can imagine between these concepts, there's a door in between. Customers can walk from one store to the next store to the next store. Similar idea here. With a swipe, you can move from one store to the next store to the next store. Virtual space, physical world, they're kind of connected in a very subtle way. Soon, very soon, I hope, we aim to let consumers move seamlessly between the virtual space from KFC to Pizza Hut as well, all within one app. But it's in the plan right now. In our virtual space, we have, you guys all know the number already, more than 500 million members in our system. But in terms of active members, means those customers who shop with us in the last 12 months, the number is about 265 million. Even with 265 million, which is not a small number, this will create some cross-sale opportunity, as you can imagine. One example is most of our K Coffee, Café, and K Pro members are actually KFC members. But most of the KFC members, they have not tried K Pro or K Coffee yet. That's an opportunity. What is the next two strategic moats? Highly efficient supply chain over the past 38 years. In the last few years and going forward, our integrated procurement system will continue to help up this business going to the next expansion phase, supported by dynamic pricing and consumer-centric food innovation. Consumer-centric food innovation. Right now, last year, instead of launching 500 new food to customers, we actually launched about 600, even more. Some are LTO, some are Hero products, and occasionally new growth drivers. Our logistic network is agile, and we can already cover 5,000 cities in China. Remember the 4,500 cities that we want to go to in a few years? The supply chain is there already. We built the support network there already. It's not a question whether a supply chain can support in any of those 4,500 cities. Even now, yes, we can. Because supply chain has to be ahead of the rest of the business expansion. Howard, our Chief Supply Chain Officer, will share more about the supply chain strategy. Behind all of this is the technology. For years, we have been on a journey of digitization, many years. We have really big, high-quality transaction and operation data since 2015 when we started to build the CRM system. This gave us a head start. Today, we are stepping into a new era defined by agentic AI. Leila, our CTO, will share how digital and AI support our business. This is a page that you are probably looking for. Adrian will have more details in his session at the end of this morning's presentation. With everything we built, we have a clear vision for the future. In the near term, we remain confident in meeting our quarter four and full-year guidelines. We do see early signs of improving consumer sentiment, which is nice to see. Looking ahead, our ambition is to reach 20,000 stores next year and then 30,000-plus stores by 2030, a milestone I look forward to celebrating together with the fantastic Yum China team and hopefully with you all. By then, we aim to grow our active member to 400 million from 265 million right now. Along the way, KFC aims to exceed ¥10 billion operating profit or $1.4 billion at the current exchange rate. Is the exchange rate move to our favor? Wonderful. There's a good chance that it will be the first restaurant chain in China to achieve that. By 2029, Pizza Hut is expected to double its operating profit to over $310 million compared to 2024. By 2028, we also look forward to delivering $1.1 billion in free cash flow. Our CFO will talk more. With a clear ambition, we are moving forward with confidence under the RGM 3.0 strategy. Looking ahead, our vision remains unwavering to be the world's most innovative pioneer in the restaurant industry. Thank you. Now, please welcome Wattan. Come on. 如果美好也有赛道的话，那肯德基一直坚守的，一定是一场接力赛。正是这份持之以恒，帮我们穿越周期，永远给人们带去欢乐。38年来，肯德基坚持维护经典的美好，用手工现做的坚持，一丝不苟的专注，留下经得起时间考验的好滋味。你让每个人都有尽享美味的安心，用遍布全国过万家门店的规模，用风雨无阻的准时，用每个清晨的守望，用每周如约而至的疯狂，让美好和人们时刻相伴。时至今日，肯德基也接过时代的使命，传递新潮的美好。凭借与时俱进的美味创新，我们创造一样样前所未有的新奇，也开拓一个个不曾涉足的领域。怀着让陪伴近在咫尺的心愿，我们涉足一座座边缘小城，遍历一个个忙碌时刻，和一间间门店并肩前行，带来一年又一年的长情相伴。带着对美好全方位的追求，我们打通壁垒，连接一个个圈层，用微笑一次次迎接顾客，用真诚倾听同事们的声音，共同迭代出一个个有温度的尝试，献出一份份无微不至的关心。无论是一帆风顺，还是迎难而上，无论是传承经典，还是不断创新，只要世界上仍有未曾实现的期待，这场肯德基的接力就永不停止。永远美味，永远陪伴，永远美好。心怀美好，心心向前。
各位投资人好，朋友们，大家早上好。欢迎来到深圳参加今天的沟通交流活动。我是肯德基中国品牌总经理Wattan。感谢大家一直以来对肯德基品牌的关注和支持。我今天和大家主要分享三个部分的内容。一是我们对品牌基业长青的信心和底气。第二是我们看到品牌未来成长巨大的空间和机会。第三，简单和大家分享品牌RGM 3.0的策略。 毫无疑问，肯德基已经是在中国发展的最成功的餐饮品牌之一。有数据统计显示，当下中国餐饮门店的生命周期两到三年。肯德基作为一个万店规模的品牌，我们在中国已经生活了38年，并且仍然在快速的成长。我们倍感骄傲，也无比珍惜。同样，我们有足够的信心和底气去面对未来的机遇和挑战。 首先，我们有非常多殿堂级的经典的产品，他们共同帮着品牌成就了我们在西式快餐的领导地位。其中两个超级的大单品，相信大家也都很熟悉，香辣鸡翅和香辣鸡腿堡。我们一款单品的年度的销售额，今年可以超过¥40亿。¥40亿是个什么概念？我们一款单品已经跑赢了中国A股市场70%上市公司的年度销售额，非常的了不起。我们自己也对这些产品感到非常的骄傲。 除了这些经典的产品，肯德基品牌产品的创新能力也是有目共睹的。过去几年，我们像塔可、肉霸堡、原味鸡汉堡等等，都得到了市场的认可。永远好滋味是我们对中国消费者最重要的承诺。 便利性也是我们品牌非常重要的核心竞争力。现在我们已经在全国2,500多个城市开设了超过12,000多家门店。一个品牌能不能快速开店，品牌力非常重要。门店的模型也是一个非常关键的因素。现在肯德基有四款店的模式，经典款是我们的基础模型，大概170平的面积，¥160万左右的投资。在设计上更加明亮、简约大方的同时，我们过去两年，我们新店的投资也下降了大概10%。 旗舰店是特殊商圈的特殊设计，彰显商圈的主题和品牌的精神。康派的店是我们在高线城市用来加密的模型。它通过厨房动线的优化，更精准的设备产能的设计，更精准的座位效率的设计，大幅的下降了餐厅的面积和投资。还有是小镇。小镇是两年前我们为了快速下沉低线城市新研发的模型。它的面积100平左右，投资可以控制在¥50万到¥70万。这个模型现在已经进入了400多个空白的城市。 有了这些高效率的模型，品牌就可以快速的开店。我们希望有人群聚集的地方，就能有肯德基的品牌服务。肯德基现在也有非常广泛的消费者的基础。目前我们的会员人数已经超过了5亿。 我们在自己万店里程碑的时刻，也问过自己一个问题，中国的消费者为什么会选择我们？这个问题的答案来自于我们对全国非常大量消费者的调研。首先，消费者觉得我们很方便。的确，一个万店规模的品牌，我们可以做到触手可及。当消费者有需要的时候，我们有能力立即出现在消费者面前。 第二，消费者也非常信任我们。虽然门店很多，分布很广，但是我们每家餐厅的出品服务也能保持一个很好的一致性。有消费者会谈到，当他去到一个陌生的城市，不知道吃什么的时候，他会想到肯德基。 同时，消费者也喜欢我们的创新，无论是产品营销或者是游戏IP，在肯德基总能找到很多新鲜的感觉，可以感受到品牌的活力。谈到最多的是消费者喜欢我们在餐厅自在的感觉。无论是朋友聚会，还是一个人用餐，或者你没有用餐，要了一杯热水，刷刷手机等人等车等等，好像在肯德基做任何事情都非常的正常，非常的自然。这种像在自己家里一样自在的感觉，它确实拉近了品牌和消费者之间的距离，让消费者更容易走进肯德基的餐厅。 我们还有一支非常优秀的营运团队。此刻我们现在就有6,000多名餐厅经理，带领着20多万的一线员工在餐厅服务着顾客。RGM Number One是我们最重要的企业文化。我们坚信每一家餐厅的成功汇聚到一起，就是肯德基品牌的成功。我们营运所有的Leader，无论职级，全部都来自于一线的餐厅。他们非常熟悉前线的业务，也知道餐厅的辛苦和不容易。他们最有意愿帮助餐厅解决他们的问题。同样，我们最高的营运标准，最好的营运传统，也很容易得到传承。依托RGM Number One的文化，依托我们这支有非常深厚底蕴的营运团队，我们就有信心把门店开到全国各地。 过去五年，我们一起经历了很多事情，包括疫情、贸易战、关税战、平台大战等等。感谢消费者的信任、团队的努力和合作伙伴的支持。肯德基在过去一直保持着一个稳健的发展的节奏。我们预计到今年底，我们门店的总数将会接近13,000家。过去五年，无论是系统销售还是利润，我们也都保持着年均5%左右的成长。 更为难得的是，在这个过程中，团队的眼界、团队的能力都有了非常大的提升。无论是产品创新、模型创新，还是我们会员系统的经营、营运效率的提升，团队都长出了不一样的认知。这就让我们可以看到未来更广阔的发展空间。 展望未来，下沉是品牌非常大的一个机会。首先，我们现在可以进入的城镇的数量在不断增多。一方面，随着中国城镇化的进程，人口的聚集速度在加快，很多小的城镇都在迅速的长大规模。另一方面，品牌也不断在做模型的创新。我们可进入的小城市的门槛是在不断下降的。此刻，我们就已经有2,000多个空白的城市和3,000多个空白的商圈可以去开店。 除了城镇，还有人群。在中国，我们低预算人群的生活环境在快速的发生变化，他们的收入增长也远高于整体平均。这个人群对改善自身生活品质的诉求非常的迫切。品牌通过我们产品渠道的创新，我们服务的人群也在下沉。这样就让我们在以前很难触达的下沉市场，有机会带给品牌新的增量。总之，无论是下线的城市，还是低预算的人群，品牌和环境的双向奔赴，让我们未来可以看到一个非常大的成长的空间。 另外一个增长的机会，就是在现在不断涌现的新的业务场景，像咖啡、茶饮赛道很大，发展很快，健康轻食很有未来性，但现在还没有形成规模，品牌有机会建立起我们的先发优势。驾车的消费者对便利性的需求一直都在。随着私家车保有量的不断提升，这个赛道也有很大的潜力。还有大家熟悉的小吃、小喝、炸鸡、炸串，现在非常的蓬勃。这个赛道离品牌很近，完全在我们的能力范围之内，未来也有机会给品牌带来新的增长。 总之，目前我们可以做的事情很多。品牌现在面临的真实的状况不是没有机会，而是如何有序高效的开展业务，既能固守根本、聚焦核心，又能积极探索、开疆拓土。为此，RGM 3.0就是品牌未来发展的一个非常重要的策略。韧性、成长、护城河的平衡发展，就可以让品牌在保证稳健的前提下实现进一步的增长。现在我们就已经开始朝向下一个万店和2028年实现超过¥100亿的品牌利润的宏大目标，全力以赴。 具体怎么做？先介绍一下开店。未来几年之内，品牌一定会保持高线城市加密和低线城市下沉的两线作战。这个过程中，新店模型的开发和应用是一个非常重要的抓手。图片的左手边，刚才周一也跟大家提及过，这是我们深圳天安餐厅全国首家三合一的店，大家下午可以会去参观。红K、K Pro、肯悦有各自的形象、各自的菜单、各自的用餐的环境，但是他们的内场是联通的，也是由一支餐厅团队在去做管理。它极大的提升了门店的效率，也为我们在一线城市，无论是加密还是竞争，提供了一个新的思路。 右边的图片，就是我们在河南小镇上的一家餐厅。刚才也介绍了我们这个小镇模型，经过几轮迭代以后，现在的投资可以控制到¥50万到¥70万，加盟商2年到3年就可以收回投资。这个模型得到了加盟商非常热烈的欢迎。有了这些店的模型，再配合现在AI的技术，可以不断提升我们选店址的准确性，结合现在灵动厨房的新工艺，我们门店的投资可以不断下降。我们现在也希望不同的业务的形式，采用不同的租金的结构，这样我们的租金效率也会得到提升。有了这些赋能，品牌就有能力向空白的城市和空白的商圈快速的下沉。 我们第二个主要的抓手是加盟，现在肯德基品牌两个最重要的加盟的方向，一是小镇和偏远地区的加盟，目的是通过加盟提升我们开店的效率和管理的效率。第二就是渠道加盟，透由加盟商的资源，带着品牌进到我们进不去的商圈。过去的两年，利用加盟的形式，我们已经进入了400多个空白的城市和500多个空白的商圈，像人民大学、厦门大学这些全国知名的学府，像泰山、庐山这些全国知名的景区，都有了肯德基的身影。今年我们预计加盟占我们新店的比例将会达到40%。加盟已经成为品牌发展的一支非常重要的力量。 如何管理好加盟店，服务好加盟商，这也是品牌必须面对的一个非常重要的功课。我们现在加盟店和直营店使用的是完全一致的系统，包括餐厅的设计、设备、设施、营运操作标准以及全国统一的原物料采购。加盟店的收银系统也是和品牌联通的，我们可以实时的掌握加盟店的销售状况。定期对加盟店会做稽核，对加盟商的表现会做评估，这些不达标的加盟商也会停止发展的资格。我们现在还在研发一个AI店长的系统，通过数据的联通，AI技术可以帮我们收集、整理、管理的数据，找出餐厅的管理机会点，并且给出改善的建议。这些所有的新的系统，全部都会向加盟店开放。保证品牌食品安全的底线，这是我们开展加盟业务的绝对的前提。能不能管理好加盟店，赋能好加盟商，这是我们业务能够快速发展的一个非常重要的基础。 我们再谈一下销售的增长，也是两个主要的方向。一，肯德基是基本盘，包括产品力、性价比、渠道和IP，这些都是品牌最重要的竞争力，他们可以决定品牌的基本面。我们一定会优先投入足够的资源，把品牌的根基扎牢。在这个前提下，我们会开始探索三个方向的业务。第一，我们会开始探索触达更大体量的低预算的人群。如果通过产品或者渠道的创新，我们能碰到这个人群，未来一定会给品牌带来新的增长。第二，我们会开始探索更高频的业务场景，主要会去聚焦肯悦、咖啡、车速曲以及我们炸鸡、炸串的业务。第三，我们会开始尝试去布局更有未来性的K Pro的业务。 首先和大家介绍一下基本盘，不断提升品牌的产品力，这是品牌最重要的一个基础工作。三个努力的方向，第一，继续提升我们大单品的销售。今年我们排名前六的六大单品，年度的销售额可以超过¥220亿，已经占到了大盘30%以上。未来我们继续通过保证出品的稳定、经典产品延展性的创新，以及解决供应链上的瓶颈，不断去推高这些大单品的销售，让销量本身就成为我们品牌和我们产品重要的护城河。 第二个方向，去夯实我们炸鸡专家的领导地位。2022年我们出品了第一支全鸡，今年全鸡这个品类的销售额将会超过¥20亿。上个月我们又出品了香熏纸包鸡，全新的工艺、全新的风味，得到消费者非常热烈的欢迎。相信明年这个品类一定会有一个更大的增长。还有一个重点就是翅，翅是炸鸡品类里最大的单品，这也是我们品牌一直都有非常高的强的领导地位。我们以前就有了一款烤翅、一款炸翅，同样也是上个月我们又出品了一款薄脆金沙翅。这是一款全新风味、全新工艺的中式的烤、中式的翅，得到了消费者也是非常热烈的一个欢迎。我们上市一周，这个货就卖空了，然后11月11号再次返场，不到两天、一天半的时间再次售罄。未来我们会考虑把它转成长线。现在我们一炸、一烤、一根中式这三根翅，明年的销量¥100亿，最少会超过¥100亿。 我们第三个方向，就是继续提升我们主食的丰富性。之前肯德基这些主食的创新大家都很熟悉，非常成功。今年我们在中秋节出品了一款月亮堡，主要是为了和这个节日配合，提升节假日的生意。生意的拉动非常明显。沿着这个思路，明年在节假日的主食上，我们会加强我们的创新。同时我们还有一个重要的项目，就是大碳水主食。这个产品，就是希望能去触达这些低预算人群。一会，会和大家单独做介绍。 我们基本盘的第二个重点，是不断提升品牌性价比的能力，也是三个努力方向。一、继续让我们这些性价比的平台不断的IP化，除了产品好吃、价格优惠，还要好玩，要能给消费者提供情绪价值。今年我们做的疯四、送鸡毛、胆子、周末书超、13P都是非常好的案例，在互联网上也有非常广泛的传播。第二，就是不断的去强化品牌一人食的心智。我们从两年前¥19.9 OK三件套开始，发展出¥22.9、¥25.9，销售的状况都有了一个很好的提升。未来我们会继续依托我们非常丰富的主食的单品，打造一个丰俭随意的一人食场景。第三就是主题式营销。今年成功的案例，像原味鸡85周年、蛋挞20周年，它的好处是主题明确，消费者记得住，容易理解，对销售的拉动也非常明显。我们其实品牌每年都有很多可以庆祝的一些主题时刻，未来我们就依托这个时间点，做好主题式的营销，为销售赋能。 渠道现在的营销相对比较复杂，外部的平台竞争非常的激烈。对品牌，对我们自己，一方面我们不断优化我们商圈的管理，优化我们骑手的成本，提升我们外送的竞争力。第二，现在外部的渠道也都在做积极的创新，像拼好饭、神枪手等等。我们也会保持一个积极的学习和探索。对内部，我们最重要的聚焦就是我们的超级APP。今年平台大战，对各个品牌自有渠道都造成非常大的冲击。在这个背景下，我们APP的销售占比，今年还提升了5个百分点，非常不容易。未来我们也会继续努力。 IP现在已经被证明是一个非常高效的营销手段，因为它对折扣、对广告费的资源消耗很小，依靠自身的流量就可以快速的拉动品牌的生意，并且给消费者带来情绪价值，也能够让品牌不断的年轻化。过去两年，IP无论是给消费者还是给品牌，都带来非常多的惊喜。未来一方面对外我们去做好建联工作，我们希望可以和更多的全球最顶流的IP展开合作。对内，我们就加强我们的营销效率，更多的探索像主题店这种高效的营销方法。 刚刚谈了一些基本盘的业务，接下来也跟大家介绍几个品牌的增量业务。首先，肯悦咖啡大家可能都相对比较熟悉，目前我们已经超过了1,800家门店，它是用店中店形式拓展的，这就让肯悦它可以有一个更低的获客成本和一个更强的性价比能力。气泡咖啡是我们的创意产品，现在无论是口碑还是销量都非常好，蛋挞本身和咖啡就特别的搭配。肯德基我们蛋挞的研发能力也是有目共睹的，我们为肯悦咖啡定做的大蛋挞、焦糖厚蛋挞，现在在肯悦里都有一个不错的销售占比。肯悦现在已经有了一个相对完整的产品的矩阵，未来我们通过更多的产品的创新、更多营销资源的投入，更快速的开店，让消费者多去了解我们，不断去拉动肯悦咖啡的销售。团队也非常有信心，2029年之前，它一定可以成长成一个5,000家以上门店规模的品牌。过程中，我们有两个重要的任务，一是要不断努力的去跑通独立店的模型，第二我们也会尝试着探索加盟的发展方式，为这个业务更快速的发展打好基础。 K Pro是我们今年年初开始的一个新业务，主要是聚焦健康轻食的赛道，这个赛道目前的规模不是很大，¥200亿左右，但是我们判断它有很强的未来性，特别是对我们这样一个以炸鸡为主的品牌，值得我们投入精力去学习、去探索。业务拓展了一年不到的时间，发展的很快，目前已经在20多个城市有了120多家门店。它的产品，主要包括能量碗、帕尼尼、一些健康的饮料和一些小食。能量碗是我们最大的单品，7款能量碗现在的销售占比已经超过了50%。它也是用店中店的方式来拓展，有了店中店的赋能，再加上能量碗这个大单品的加持，团队对这个业务也非常有信心，相信用不了几年，它肯定能成为一个千店以上规模的品牌。 车速曲也是一个很有潜力的业务，消费者的需求一直都在，只不过之前受制于我们车道资源获得性的限制，这个业务一直跑的都不快。过去的几年，团队也做了很多的一个探索学习，在传统的车道点取餐的基础上，团队又发展出了推门术，消费者通过手机下单，我们的员工可以走出餐厅，完成产品的交付。这样的话，即使餐厅门前有绿化带、有台阶、有隔离的障碍物等等，依然不影响我们铺设车道，车道的获得性就大幅的得到提升。团队又发展出了叫连接曲，通过定位的技术，我们的员工可以在餐厅附近的路边或者停车场完成产品的交付。因为有了这么多更多的新方法，品牌也很有信心，明年我们投入更多的资源，更大规模的去打开车消费的场景。 这是我刚才跟大家谈到的大碳水主食的项目，目的也讲过，就是希望通过产品，通过渠道能去触达更大体量的低预算的人群，给品牌带来更多的增长。项目的初期，我们先把人群聚焦在以骑手、网约车、司机为代表的这些从业人群，大学生、都市的一些蓝领等等。产品也基本准备就绪，我们几个月之前在全国范围内展开了一场大碳水主食的创意大赛。RC代表队的这个产品，像黄焖鸡、米饭、猪脚饭已经进入市场做了测试，市场的代表队的产品也很惊艳，包括我们四川的锅盔、河南的焖面等等。经过RC最后的精修，也有机会走进市场。团队对这些产品非常有信心，渠道上我们会考虑拼好饭渠道的测试，现在拼好饭已经成为都市打工人群非常习惯使用的一个交易的平台。我们也会和大的平台公司展开D2B的合作，通过提供骑手餐、驾驶员餐，用这样的方式精准的触达从业的人群。我们还有一些像大学这些比较封闭的商圈，是可以考虑直接上菜单，直接面对大学生的消费者。明年是我们大碳水项目的元年，我们对这个项目也有非常多的期待。 在韧性上，品牌现在最主要的聚焦打造一个健康的成本结构和一个高的运营的效率，我们会从四个方面展开努力。第一个，通过餐厅的精简提效，包括产品原物料，也包括包装和小器具的精简。第二个方向，通过把零散在餐厅的工作集中化的去处理，提升餐厅的效率。我们现在已经有了集中招募、集中培训的中台、新店开业的中台，现在还在探索集中订货、集中排班的中台，以及更多的工厂化和外包化的项目，不断的给餐厅减负提效。第三，通过共享提升效率。在这件事情上，品牌过去几年有非常非常多有意义的探索，我们有很多的学习，像我们以麦克为代表的人力资源的共享，我们原味鸡汉堡这种产品的共享，肯悦K Pro这种店中店的点子资源的共享，以及我们和必胜客联合作了双子星的项目，也实现了跨品牌之间的共享。实践证明，共享是一种非常高效率的方法，相信无论在品牌内或是在集团内，我们都有非常多的机会可以去挖掘。第四是科技的赋能，现在日新月异的技术，确实让我们最传统的前店后厂的单店管理模式有了被创新和改变的可能。我们会在保证稳定的前提下，逐渐的把餐厅人员的管理、货物的管理移出餐厅，中台化的去处理，让餐厅更加聚焦在顾客服务、销售利润提升上。同时我们再通过人机结合的技术，提升我们生产效率，通过AI的技术提升我们决策的效率。我们现在已经开始去探索一个面向现代化的未来餐厅的管理方法。 再谈一下我们的护城河，现在品牌超过5亿的会员规模，确实帮助品牌搭建了一条很难被复制的护城河。通过精心设计的会员体系，我们清楚的规划了会员成长的路径，从一个普通会员、付费会员到最顶层的品牌自由，层层推进，让会员的这个价值贡献能够最大化。我们现在超过百万的品牌自由，展现了极强的忠诚度和活跃度，他们年度的消费频次可以超过100次，凸显了作为我们竞争壁垒基石的战略地位。同样，通过过去这么多年会员的经营，消费者的画像越来越清晰，我们更加了解消费者的行为习惯、消费偏好、对外接触媒介的触点等等。这样的话，无论是对我们行销效率的提高，还是对品牌的决策，都有非常重要的意义。 顾客服务和餐厅支持也是品牌非常重要的护城河，我们依托贝克疯狂2.0的系统和RGM Voice的系统，我们可以实时的听到我们消费者和一线员工的声音，并且快速的行动帮助他们解决问题。我们通过肯加弟子的文化平台去凝聚我们一线的20万员工，让员工好的行为被看见、被学习和被激励。在顾客服务和餐厅支持上，我们就简单的事情重复做，无论品牌发展到多大规模，我们都会保证我们可以听到一线员工的声音，听到我们消费者的声音，并且为他们的需求积极的做出改变。 最后，肯德基品牌凝聚了几代人和几十万员工的努力，我们都希望它始终成为引领中国餐饮的第一品牌。团队也会通过长期践行三个永远的品牌策略来实现。第一是永远美味，我们致力于为消费者提供最美味的食物，坚守永远好滋味的品牌承诺。第二是永远陪伴，我们更多的开店，让肯德基的品牌触手可及，我们更好的去做性价比，让中国更多的消费者都有能力使用肯德基品牌的产品和服务。第三是永远美好，我们尊重为先，为客疯狂，对内部的伙伴相互温暖，对外承担起品牌的社会责任。我们相信美好而温暖的归属感，万众一心、上下同意的文化会激励品牌走得更远。未来我们会一起继续心怀美好，倾心向前。 再次感谢每一位投资人对肯德基品牌的喜爱和支持，谢谢大家。接下来我把时间交给必胜客的品牌总经理Jeff，有请Jeff。
As the number one Western casual dining restaurant, we keep pushing the boundaries. We are Pizza Hut. From our first store to our 4,000th in Sanya, we continue to accelerate, and our journey keeps evolving. We adapt with multiple store formats, expand in lower-tier cities through WOW and franchising models. We turn classics into legends. In the past 12 months, 45 products each generated $10 million in annual sales, including 16 that hit new milestones for the first time. As the pizza expert, we shape new trends. After years of perfecting our craft, we launched a revolutionary handcrafted thin crust pizza, selling more than 10 million units in just 7 weeks. Our new menu delivers better quality at better prices. We unlock new opportunities in solo dining. Delivery and takeaway orders are gaining momentum. Our delivery sales mix is climbing steadily, and customer satisfaction rates are rising. Powered by our digital platform, memberships have reached over 200 million. Our commitment to quality and speed fuel our innovation. Powered by AI and automation, everything runs smoother, allowing us to deliver great quality with consistency and ease. Beyond our current customers, we're reaching the next generation through creative collaborations with popular IP. We're driven by a deep sense of social responsibility. We care for each of our employees and support their growth. From one table to 4,000 stores, we're building the future, creating growth and enduring value, together with Pizza Hut. 各位投资人，各位来宾，大家上午好。非常欢迎大家来参加本次百胜投资人大会，也非常高兴能够和大家再一次在深圳相聚。我是必胜客中国的品牌总经理，蒯俊Jeff。在接下来的30分钟里，我会跟大家分享三个话题。第一，是我们在过去一段时间我们取得的一些成绩；第二，是说从我们现在所处这个赛道和价格段出发，我们所面对的未来的成长机会和发展空间。最后，我会跟大家分享一下，我们会如何把握住这些增长的机会，以及为未来几年我们的增长目标。 首先，我非常高兴的跟大家宣布，我们今年已经在三亚，开出了必胜客的第4,000家门店。从1990年我们进入中国，到2023年，我们花了33年的时间，开出了3,000家门店，而从3,000到4,000，我们只花了两年多一点的时间。而且我们在店数加速成长的同时，还做到了让新店品质的不断提升。相比2019年，我们的新店投资回报周期从3年左右，缩短到了2-3年。 从销售角度来说，我们今年前三季度，我们的同店销售保持一个稳健的成长。更加可喜的是，在我们品牌发展策略的支持之下，我们的同店客流持续保持强劲的增长。今年前三季度，我们的同店客流相比去年提升了17%。到今年的第三季度，也是我们第11个季度，有一个连续的同店客流的正增长。 品牌在为顾客提供更好的产品、更好的性价比、更好的体验的同时，还做到了让品牌的效率不断的提升。2024年，相比2019年，我们的餐厅利润率提升了90个基点。在这个基础之上，我们今年的前三季度餐厅利润率又提升了90个基点。所以，我们今年的前三季度，我们的品牌的总利润相比去年提升了16%。在这样一个竞争激烈的市场里面，必胜客品牌做到了让系统销售、同店销售和餐厅利润率这几个维度的同步提升。 是什么让必胜客这样的品牌能够一次一次的穿越周期，保持持续的增长？首先是因为我们有一支打过硬仗，也打胜过硬仗，经过多年磨合的高效团队。从一线到总部，这支高效的团队让我们可以面对市场的变化和挑战，制定最有效的战略，持续的创新提效，一次一次把握增长的机会。 第二，是因为我们有一支非常强大的品牌，必胜客一直以来都是我们消费者心中最受欢迎的西式休闲餐饮品牌。在过去几年，消费者对必胜客在口味和性价比上的认同度也越来越高。这份来自顾客的信任和认同，是品牌最大的护城河，支持品牌的快速发展。 第三，是因为我们的产品力，我们已经在多个赛道拥有绝对领先的市场地位。这些强势的品类给品牌带来巨大的竞争优势的同时，还带动了整个品牌的发展和市场份额的不断扩大。在这些品类当中，最重要当然就是我们披萨品类。通过不断的创新，我们披萨品类一直保持着一个非常持续高速的成长。今年我们预计我们将在全年，我们会售出超过2亿个披萨。这什么概念？这个售卖量相比2022年已经有了翻倍的成长。 最后是因为我们有一张遍布全中国的门店网络，以及在这个基础之上，我们建立起来的线上的门店和我们的数字化会员系统。我们的线上门店是说什么？外带外送，这两个渠道的增速一直以来都是远高于大盘的。到今年三季度，我们的外带外送的生意加在一起已经超过了一半。我们的会员基数，也一直保持着一个非常高速的成长。目前为止，我们总会员已经突破2亿大关。我们这些线上的渠道，我们的会员系统在给顾客提供极大便利性的同时，还让品牌可以非常有效的触达到我们这些顾客，成为品牌的长期竞争优势。 我们的团队，我们的品牌，我们的产品力，我们的渠道的能力，帮助品牌一次次穿越的周期，也是我们品牌可以在未来持续突破、加速成长的一个最重要的基础条件。当然，加速成长的另外一个重要条件是市场有没有机会。现在看来，市场上机会还是非常大的。 首先，披萨这个赛道还在保持一个非常健康的成长。根据Euromonitor的数据，我们看到说从2025年到2029年，中国披萨品类的年复合增长会超过10个点，远高于整个餐饮市场的规模的一个增速。 第二，在品类上，必胜客已经开辟出了品牌成长的第二曲线——汉堡。从去年的4月份我们第一次上线汉堡之后，我们的汉堡品类就一直保持非常快速的成长，也带动了整个品牌的成长。汉堡的品类的它的市场体量，是远大于披萨的。虽然，竞争也更加激烈，但是必胜客已经通过我们差异化的，这个西餐级汉堡的市场定位，在这个市场上站住了脚跟。消费者非常认可我们每天新鲜现做的汉堡面包，我们有特色的大片整肉，我们现点现做的制作工艺和我们亲民的价格。因此，我们汉堡这品类的这个整个的消费者的复购，也是远高于大盘的平均。 第三，是我们在新的价格带还有非常多的机会。2019年的时候，我们的人均客单价是在¥60左右，比我们这个所处赛道里面98%的餐饮品牌要更贵。这个定价和定位所对应的市场空间，是无法支持像必胜客这样体量的品牌有快速发展的。所以，在2019年之前，那几年，我们这个同店也非常的艰苦，我们的开店竞争数也在下降。在过去几年，我们对我们的客单价，做了一次大幅的调整。现在，我们的客单价已经落到了一个非常合理的区间。我们当然还可以再继续，扩大我们价格带，但即便在我们的现在这个价格带，也完全可以支持品牌做快速发展。 最后也是因为品牌价定价的调整和性价比提升，我们比以往任何一个时候更有机会可以进入到那我们还没有进入的3,500个小城市。我们也更有机会可以把我们的服务场景从现在的多人用餐场景扩展到未来的每天单人的刚需场景。我们也可以更好地服务于那些收入有限的人群和更为年轻的客群。所以总的来说，我们已经在赛道的扩展、价格带的调整和性价比的提升上，我们做了很多的工作，为我们获取更多下沉市场的机会、更多刚需场景机会、更多年轻的客群的机会做好了准备。 这个我们故事讲的也很多了，是吧？看上去我们，既有加速成长的能力，也有加速成长的市场机会。到底我们未来的成长的目标是什么呢？刚刚Joey跟大家这个说过了，我们的目标是要五年再造一个必胜客。2029年的时候，品牌的利润要相比2024年翻一番。今年是我们五年计划的第一年，到目前为止，我们的进展还是不错的。如Joey之前刚刚讲的，我们RGM 3.0战略就是完成我们五年计划的方法。接下来，我会按照韧性、成长、护城河这几个角度来跟大家分享品牌的发展战略。 首先，我会讲一下我们我们的增长策略，也分成两个部分，一个是开店成长，另外一个是同店的一个增长的一个策略。第二，我会分享一下我们会如何大幅提升我们餐厅的利润率，来让我们的业务更加有韧性。最后我会分享我们如何提升我们的餐厅的体验，用我们以人为先的文化来不断拓展我们的护城河。 未来几年，我们每年的开店竞争数会从现在的400-450家提升到600家店以上。预计到2028年，我们的总店数会超过6,000家，而且在加速开店的同时，我们一定会严控开店的新店的品质，保持2-3年的新店投资回报周期。我们会通过四个抓手，来做到新店增加的保质保量。 在高线城市，我们会通过各种模型的组合使用，不断的加密门店。对于我们已经进入的城市，我们会不断的优化现有资产的一个布局。对于我们还没有进入的3,500个小城市，我们会通过我们的WOW模式、我们的双子星模式加速进入。最后我们也会加速加盟，让加盟商带我们去到那些我们暂时去不了的地方，比如说景区，比如说一些学校，或者说加盟伙伴比我们有更高营运效率的地方，比如说部分小镇和偏远的地方。 首先我来讲一下模式，无论是高线加密还是低线下沉，我们最主要的事情还是打造出更高效的门店模型。新店的投资回报周期要短，投资要更低，能够支持的生意额要更高。现在在高线我们有两个模型，经典模型，偏重于堂食，也兼顾外卖。卫星店，更加侧重于外卖。在过去一段时间，我们已经大幅降低了卫星店的投资，我们也找到了方法，可以降低我们的经典模型投资。未来我们会使用这两个模型，在高线城市开出更多高回报的好店。 对于低线城市来说，我们去年开发的WOW的模型，我们发觉非常高效。相比我们的高线模型，在定价上WOW，是采用Everyday Low的定价，更加契合我们小镇居民的消费习惯。我们在服务模式上也做了一些升级，更加接近于QSR模式。在高峰时段也有更好的承接能力。最后我们把单店投资也下降了50%。现在WOW小镇的模式，在低线城市投资大约在¥60万到¥80万左右。这样，WOW可以在更多的小城市有更高的开店成功率。我们已经在，低线城市开出了超过40家，WOW门店。现在看来，无论从，我们的投资、从我们的周销售额和利润率角度，还是新店的回报周期角度来说，都是符合我们的预期的。同时，我们也会邀请，部分加盟商一起在小镇来测试这个模型。我们在屏幕的右边，我们也放了一些产品和价格，大家可以感受一下。今天下午，我们也安排了去我们的WOW模型，有一些store visit，大家也可以亲身去感受一下WOW的很多的产品和定价和服务。 对于我们已经开出的4,000家门店，我们还会不断的做调整和升级。首先通过AI的赋能，我们会为每一个进入的主要城市，按人口分布，按人流的数据，计算一个门店布局的最优解，并按此蓝图来保留我们的高效门店，调整我们的低效能门店。同时，我们还会每年不断的升级我们的外立面和我们的外场设计，不断的来提升我们品牌的形象。 讲完开店，我们再讲一下销售。在销售方面，我们的目标是每年保持高单位数的系统销售成长。我们的战略也会从守正和创新两个角度切入。首先是守正，我们先会夯实我们的基本盘，把我们的家庭客群和多人用餐场景的生意做好，提升产品力，提升性价比，做好外送，扩展价格带，下沉到小城市等等。我们希望我们来争取能够在这样的一个人群和场景当中，在我们的基本盘当中拿到更多的市场份额。同时，我们也会不断的创新来拓展我们的增量盘，做好我们的汉堡品类，做好我们一人食外带场景和更多的年轻客群。接下来，我就会按照基本盘和这个增量盘，两个部分展开来讲一讲。 首先，夯实基本盘这块最重要的事情还是要不断的提升我们的产品力。在产品力当中，最重要的事情是什么？是不断的强化我们在披萨品类当中的领导地位。在过去几年，我们的披萨品类一直作为一个最重要的增长引擎，带领整个品牌的成长。今年前三季度，我们披萨的总的售卖量相比去年成长了24%以上。在这样的增长背后是不断的创新，特别是在饼底上的创新。今年8月份，我们上线的10寸手作薄底披萨，上市之后，就已经成为了售卖量最好的饼底。薄底系列披萨顾客的反馈也好，复购也好，都是大过披萨整个品类的平均的。再加上我们2022年上线的手拍披萨，现在我们创新饼体的销售占比已经超过了70%。未来我们在披萨上的创新，也会围绕着我们的创新饼体展开。 第二，我们还会不断强化我们的经典披萨口味，比如说我们的超级至尊，比如说我们的鲜虾至尊，把这些强的全球产品打造的更强。同时，我们会推出我们新的爆款，比如说我们现在大满贯披萨，比如说我们的咸蛋黄披萨都卖的非常好。最后，我们会不断的做大我们在¥39-¥49线的value line的披萨，我们希望持续扩大我们在不同价格段的市场份额。 我们提升产品力的另外一个重要抓手，就是不断的做产品上的聚焦，持续的打造出大单品和新爆款。在过去几年，我们做了一系列的菜单精简的工作，我们的长线产品个数从之前的105个，现在下降到80个不到。所以单品的效率大幅提升。而且在这过程当中，我们还在持续打造出我们的大单品，比如说我们的意式肉酱面，比如说我们榴莲披萨。我们希望让那些高复购的全球产品的销量可以越来越好。同时，我们还在不断的创新，推出我们新的爆款，比如说我们的蜜汁鸡腿堡，比如说我们的韩式炸鸡等等，来带动整个大盘的销售。 我们夯实基本盘的第二个抓手是提升品牌的性价比，我们也会从两个方向入手。第一，是我们长线菜单上的性价比。我们已经8年没有涨价了，相反在去年的第四季度，在保持利润率的前提之下，我们做了一次大幅降价，效果也非常好。我们看到我们的同店客流从去年的Q4开始就一路上扬，到今年前三季度，我们同店客流相比去年涨了17个点。后续，我们觉得，这个价格带扩展差不多了，我们会逐步的稳定我们的客单价。同时，我们会在高价格带，上线更多性价比非常好的产品，来同时拉动我们的客流和客单价的增长。 我们第二个强化，现有这个我们性价比的方法，是持续的把我们的促销平台，我们一些signature value platform做好。我们今年对我们的尖叫星期三，做了一次升级。在周三的时候，顾客可以在必胜客获得更有确定性的活动。目前来看，效果也非常好。未来，我们会延续这个思路，来升级其他的促销平台。未来我们的大方向是希望不断的强化我们这些促销平台在顾客心中的心智，获取更多的信任，来提升效果。 我们夯实基本盘的第三个抓手是外送。外送一直以来，都是我们最重要的增长引擎。今年，前三季度涨得非常好，我们外送成长27%，也是远大于大盘的成长。未来，我们会持续这个发力外送，我们会着力提升在外送场景上，我们的产品口味。我们会借助平台的骑手资源，来大幅提升我们的配送效率和速度。我们也会不断优化我们的算法，来提升我们在公域平台上的流量转化率。最后，我们会通过更多的专有的权益、专有的机制和活动，来提升我们自有平台的增长速度。 我们夯实基本盘的最后一块，是持续强化我们的数字化能力。在过去一段时间，我们整个的会员基础始终保持了一个非常强劲的增长，而且在去年，在今年大菜单推广的这个带动之下，我们的拉新速度远超去年。未来，我们会通过我们的CRM program，我们的prime card来提升顾客的复购。同时，我们会通过给我们的自有APP和我们小程序更好的流量支持、更好的权益和更好的体验，来带动我们自有平台的使用占比。 我们讲完基本盘，我们再来讲一下我们的增量盘。我们拓展我们的增量盘也有四个抓手。第一，是持续打造我们上线不久的汉堡品类。在产品上，我们会更加侧重于牛堡类产品。在宣传上，我们会更加突出现点现做的西餐级汉堡的定位，然后再通过我们的LTO活动和各种的促销活动，来让更多的消费者知道必胜客有高品质的汉堡产品。 第二，是我们的一人食，今年我们的一人食涨得也不错，前三季度也涨了25%。未来，我们会通过建立和打造必胜单人餐这个IP，来通过给消费者更多量价比非常好的产品组合，不断的提升一人食在堂食和在外送上的用餐体验，来拉动这个一人食的一个增长。 我们第三个抓手是外带，这个渠道也长得不错。未来，我们会持续的来提升心智，提升我们出餐速度和取餐体验，来驱动这个渠道的增长。 最后是我们的IP联名。在过去几年，每年我们都会和超过20个各种各样不同的IP做联名活动，给我们的消费者带来了不少的情绪价值，也给品牌带来了不少的新客。未来我们会持续和那些家庭顾客喜欢的IP做联名。同时，在积极的探索和游戏、动漫这样的IP展开更多形式多样的联名合作。 讲完销售，我再来讲一下我们这个如何来提升我们餐厅利润率，让我们的业务更有更加有韧性。我们刚才讲了，销售有了，就要交更多的利润数字，我们也要尽力，为这个百胜中国尽更多的努力，出更多力气。所以，我们的目标，是2028年的时候，让品牌的利润，总利润相比2024年成长75%。到2029年，我们的整体利润就可以翻一番。相应的到2028年，我们的餐厅利润率会达到14.5%，相比2024年会提升超过250个基点。而且我们在提升我们品牌和餐厅利润率的同时，我们还会不断的拓宽我们的护城河，提升我们的顾客体验和满意度。 对我们来说，提升我们的餐厅利润率的最重要的抓手，就是提升我们餐厅的人效。我们会从四个方面来入手。首先是简化，简化我们的产品，简化我们的菜单，简化我们的制备工作，简化我们每一个产品的制作步骤，简化我们的管理工作。对于那些没有办法简化的工作，我们会想办法用自动化的设备和自动化的系统来实现。对于那些既没有办法简化，也没有办法再自动化的这些工作，我们会尽量通过我们的办公室的中台来做集中化的处理，来提升效率。比如我们已经上线了我们的集中招募、集中培训、集中开店，我们的餐厅经理不再需要去关心这些工作，他们可以把更多的时间花在照顾好顾客和照顾好我们员工之上。未来我们还有更多的机会去做更多的集中化，比如说集中订货、集中排班、集中营销等等，来提升我们餐厅的总体的效率。最后，我们也会不断的提升我们一线我们的一线员工的激励机制，让我们效率高的员工能够有更好的收入回报。我们来鼓励我们的一线员工来提升效率，也可以更好的保留住那些高效能的员工。 在顾客体验方面，除了整体的满意度之外，我们对于出品的速度和出品的稳定性给予了特别的关注。在过去几年，我们在顾客体验的各个方面，都有持续的进步。未来我们会持续提升我们的出品的稳定性和品质，特别是披萨的出品的，这个还是非常手工的。我们已经上线了这个AI质检系统，我们通过AI的图像识别技术已经做到了为我们每年2亿个披萨，每一个披萨的合格率做一个检查。而且我们基于这些数据，可以做有针对性的员工培训和工艺改进。 我们还会持续的提升我们的出品速度，通过IK Tree，我们的Intelligence Kitchen系统，我们已经做到为每家餐厅每时每刻的物料准备和生产计划计算一个最优解。借助于最新AI技术的这个使用，我们还在不断的优化算法，来提升我们在餐期高峰的生产产能和出品速度。此外，我们还会通过不断的来提升我们的用餐环境和餐厅服务，来提升顾客的整体满意度。 最后我们RGM 3.0的战略要落地，最重要的还是我们每一位RGM和我们的组织文化保障。我们已经上线了RGM 3.0的系统，用来收集我们RGM的建议问题，并及时给出反馈。通过AI的辅助，我们已经做到了让每一位RGM的声音都可以及时被听到，他们的问题可以被及时解决。 对于顾客，我们一直以来也秉持着为客疯狂的文化，我们建立系统，从多个渠道收集顾客的意见和反馈，及时回应，认真分析，从根源上解决每一个问题，服务好每一个顾客。 最后我们靠着我们的团队能力，靠着我们品牌力、我们的产品力和我们的渠道能力，我们一次次穿越周期，为我们的加速成长做好了准备。在披萨和汉堡的赛道，在新的价格带，在下沉市场，在刚需场景，我们也为我们的加速成长开辟出了市场的空间。我们更是为了抓住这些机会，从开店、同店利润这几个角度制定了清晰的战略。我们有信心把必胜客打造成全球最具创新力的披萨品牌。五年再造一个必胜客，谢谢大家。 接下来，我们有请Magic陈，我们的首席顾客官和我们的拉巴扎总经理，来介绍拉巴扎的品牌战略。
Thanks, Jeff. Good morning, everyone. I think this morning everybody already enjoyed the first cup of Lavazza. I'm Maggie Chen, as new role of General Manager of Lavazza JV. Today I'm really excited to share the most legacy Italian coffee brand, Lavazza, and its progress in China market. Let's start with a short video to understand the essence of the brand. You know, it's not just about details. It's more than details. It's not just tradition either. It's more than that. It's not excellence. It's more than excellence. Shouldn't you be on the court? We hope everyone in China can taste the true Italian Lavazza coffee, a brand that I'm proud to represent and enjoy around the world. Yes, detail, tradition, and excellence show brands' never-changing attitude over 100 years. Lavazza was founded in 1895, the inventor of blend and the hometown of espresso. Over the years, Lavazza has become the Italian's favorite brand around the world. What brings us here is a perfect espresso. It is the heart of tradition and the moment of coffee pleasure. Every single cup starts with the same uncompromised espresso: strong flavor, rich crema, and a smooth foam. In the China market, we are trying to connect the authentic Italian mastery, not just the detail in every cup, not just tradition in every menu innovation, but also every exciting life moment. We have been refining this brand in the past five years to find out a right but still unique Lavazza for China. As Joey mentioned, it takes years for bamboo to grow its root system beneath the soil. Once the roots are solid, we believe bamboo should up at very fast speed. We truly believe we will be one of the bamboos in Yum China. Actually, we started to build our own root system five years ago and passed through a dynamic, enormous market environment and consumer habits. We will continue to evolve the brand, and 2025 marks a tipping point. We are happy Lavazza has finally found its growth path, and there are some positive signals after Chinese New Year. By quarter three, we had 118 stores. Our coffee shop business shows strong month-over-month momentum. SSG rebounded to 111%, and we've seen a sustainable trend in the early of quarter four. At the same time, thanks to the light model we developed last year, those new four-man stores achieved restaurant margins around 5.8% in quarter three. That's a very encouraging result for single-store economy. Therefore, we are confidently moving to a new phase. We will accelerate new store opening. By year-end, our target is to reach 145. Globally, Lavazza is very excellent in the retail business. Last event today, we mentioned our plan to step into the retail market in China. Now it has already become one of two of the most important growing engines for Lavazza JV. Actually, retail revenue rose 38% year-over-year, with an operating margin around 9%. We also know that to thrive in China must adapt. As Yum China, we know how important the local insight is. We are making sure our coffee truly resonates here. China coffee market has been a significant growth in recent years. When we compare the consumption level of the developed Asian market, we are still at a very early stage. This is huge potential. As Chinese consumers drink more and more coffee, many of them will evolve from simply drinking coffee to being a coffee drinker. Their taste will naturally upgrade, and if the price is accessible, they will stay with better quality coffee and daily needs. This growing segment for Lavazza is our sweet spot. We believe we're perfectly positioned in their needs, staying true to authentic Italian coffee while offering a localized menu with accessible prices, and also Italian lifestyles: craft, art, passion, and love. As the Italian coffee master, we offer diverse coffee beans to meet different preferences, from classical Italian blends to single origins and special blends for different seasons and life moments. Actually, more and more Chinese consumers have become known and love our Kafa, Lavazza's iconic Kafa bean. This is a real bean from Ethiopia Kafa Forest. It is the birthplace of the first coffee bean. After several years' efforts, now we can offer it every day in China at a very good price. Today, one in five Lavazza customers will naturally trade up to Kafa Bean. The menu mix doubled in the past year. Surrounded by Kafa displacement, surrounded with Kafa lovers, we've continued to innovate our Kafa collection. Our recent Kafa Geisha launch achieved the highest repeat rate in the past two years. We will offer more Kafa bean choices, and we believe it will further grow our business and our fan base. Blending coffee, much like perfume and wine, is the art of combining different origins to achieve a unique balance of aroma and character. As blend inventor, we bring our global blending technical into China. Since last year, we speed up the cycles to offer different seasonal blends inspired by a lot of emotional moments like tennis celebrations. This approach has significantly grown our business and the love base. We plan to double or even triple our blend circles in the future. To win in the market, we know we need signature products. Different from Italy, Chinese consumers more prefer milk-based coffee over black coffee. Our 100% buffalo latte, milk latte, was tailor-made to Chinese consumers and taste, but still with Italian DNA, sweet ice cream-like texture. We believe in that. Year over year, we promote it. The result is very encouraging. Buffalo milk latte has already been Lavazza's signature item. In the past 12 months, we are so happy to sell over 1.5 million cups. This is 25% of our total beverage. Building this insight, we launched Liquid Tiramisu Coffee this summer. We are transforming a globally well-known dessert into a drinkable format, creating a new experience of coffee plus dessert. The product hit the market and became our new blockbuster. There are a lot of good ideas coming from my team. I think this is not only one. Actually, there are a lot of dessert-inspired beverages well launched in our shop as a daily offer. Lavazza family are big fans of tennis, and more and more Chinese consumers play tennis, watch tennis, and dress up during tennis. For us, that's really perfect. Make tennis as a platform to connect, engage with our potential customers. With world number one player Sinner, Lavazza ambassador, and a strong brand activation across all channels, during Shanghai ATP season, we enjoyed 20% sales revenue growth year-on-year. We hope the fast-growing fan base of tennis will be Lavazza lovers as well. Fashion and car racing are the pride of Italy. They also present a certain life attitude pursued by Lavazza's core targets. This year, Lamborghini Moschino campaign proved our approach. We could build connections with our customers within coffee and beyond coffee. China is a famous country of cuisine, so is Italy. Take inspiration from Lavazza's network with Michelin-starred chefs and leveraging Yum China's expertise in localization and standardization. Our joint team really delivers high-quality food with simplified equipment and streamlined operations. Good taste and light investment works in Lavazza China. We've introduced over 100 Italian-inspired food items in China. Some like focaccia and dolce have become the must-try favorite items in our menu. Some like the terrain pizza and panettone. They are starting to gain their own lovers. The clear food portfolio has also given us a very unique growth pillar to drive our TA on different day parts and, meanwhile, to bring extra sales during holidays. We found Chinese consumers super love a lot of Italian elements. We should better leverage and visualize and strengthen the connection with our potential customers. This summer, we launched the first Italian summer concept in China. We present a more comprehensive experience across coffee, drink, retail, and gift. The summer sales result is so impressive, as I mentioned earlier. Now we are in Italian winter season, ski season. Actually, we gained a very good start as well. We found all key elements to connect with our core audience, and now it's time to march ahead. We all know the store model is very critical to speed up. Consumer priorities have dramatically changed in recent years in China. We need to meet the core needs while becoming more streamlined and getting closer to the customer in distance and price. We have continuously adjusted our model. Actually, the first-generation model offers large space, good coffee, light meal, and restaurant-level experience. While this is our third-generation model, it focuses more on core needs for specialty coffee. What remains is uncompromise on the quality of coffee, coffee equipment, barista, and the Italian design. But for the store size, it has been cut in half, and the cup heights optimized to one-third. The essential model allowed us to open more stores and offer accessible prices in their daily needs. The latest version requires an investment of less than half a million, almost half compared with before. With this design, we launched our first store, Ping Zhen, in Shanghai last June. The promising sales performance and the unique economy have led us to another 24 stores. These stores have achieved around 6% of restaurant margin in quarter three, healthy and still growing. Now we are more confident than ever to expand. In the future three to five years, we will be doubling down our presence in Tier 1 and Selected Tier 2, becoming more accessible to coffee lovers and elites. We see potential for each Tier 1 city housing 150 to 200 stores. It gives us thousands in scale. The live format with Coffee Mastery, as it's called, allowed us to go broader or even go deeper. At the current stage, we will more prioritize commercial and office trade zones to increase brand exposure and meet daily needs. We're also testing strategic locations like campus, transportation hub, leveraging Yum China franchisee resources. To provide a cup of good coffee, we must ensure freshness, innovation, and good price, meanwhile retaining Lavazza's century-old roastery and blending expertise. We are enhancing local capabilities under the support from Lavazza R&D and Yum China's supply chain ecosystem. This allowed us to improve our agility to the market, reduce the cost, and strengthen our innovative pipeline. We've launched more than 40 products in the past three years. So far, close to 30% products roasted locally, and we plan to reach 70% by 2027. In the mature market, coffee retail is another huge business. China retail businesses even grow faster because of the user base enlarged. Last Investor Day, we mentioned Lavazza JV will step into the retail market. We set up our local dedicated team, worked closely with our Italian teams, and gradually shifted from 100% global exports to local R&D and production. We've expanded from only bean-based products to capsule, liquid, and drip. Some are very Asia-specific formats. We have the opportunities to build capability to react to the market like a local player, which gives us confidence to go broader and even go deeper. Meanwhile, we create synergies between shop and retail to offer and promote signature beans across all channels. As I introduced Kafa, now it gets signature sales in both businesses. In just three years, we doubled our retail sales, and we see more breakthroughs ahead. We are so happy we reconnected with our channel partners. Now you can see more and more Lavazza in premium up-middle hotels, and also we are already presenting almost all leading key accounts in Tier 1 to Tier 3. This is another very efficient way to build brand awareness. This year, we designed to set up our self-run capabilities for online channels. We had very good business results during this Double 11. In terms of GMV, actually, we are top two roast and ground coffee brands in e-commerce. My team sees more and more opportunities we can do better. We are very excited about that. Our team is in place and full confidence to break the ground. By 2029, we remain our goal: over 1,000 Lavazza stores in China and $60 million US dollars in retail sales. Lastly, allow me 20 more seconds to send an invitation here. Two weeks ago, we opened our first test store in Hong Kong to better understand Asia customers. The store is located in Central. I believe it is also the home or office for many of you. Please come and enjoy authentic Lavazza there. More signature and new products will launch aligned with the pace of mainland China. Thanks again for your time. Now let's take a short break. Please join us outside for the second Lavazza moment. Thank you. Thanks, Maggie. We'll now take a short break and give management teams a rest. You will have more time to interact with them after all the presentations. Please come back at 11:25. That's about 10 minutes, 11:25. Our lunch is a bit late today, so make sure you grab something to eat during the break. Following the break, we will have our Chief Technology Officer, Leila Zhang, to discuss our digital strategy. Thank you. 11:25. 好，欢迎大家回来。我是百胜中国CTO，雷拉张。今天刚刚从Joey的报告里面，大家有看到那个竹林。刚刚上半场，基本上我们茂盛的竹林的品牌的部分，大家都听得很精彩。那从我开始呢，我们将来给大家展示一下地下的能量是怎么样子的。刚刚大家也听到从Joey还有品牌总经理们的speech当中都有谈到，百胜中国始终把数字化创新能力作为我们核心竞争力之一。今天我非常荣幸有机会在这里和大家分享我们在数智化Intelligent领域的实践成果，也就未来的技术的愿景做一些展望。百胜中国的数字化业务伴随着业务的公司集团业务的成长，始终和集团RGM的战略同频共振。从2013年，我们布局从消费者和门店端开始。同步，我们也建立了数仓，累积大量的数据。到了2019年，在高质量的数据的平台上面，我们开始建立AI的中台，运用推荐预估的决策式AI的能力来辅助业务的快速发展。2023年，ChatGPT吹响了人工智能的号角。我们积极拥抱生成式AI，在第一时间引入了智能体，加深业务和技术的融合。进入到了2025年，智能体2.0开始以数字伙伴的身份辅助一线和中后台的员工，持续在我们行业当中能够打造领先的数字化能力。目前，百胜中国已经全面拥抱了AI，在消费者、门店、供应链和企业后台四大领域拥有深度的应用。在消费者端，我们为5.75亿的用户提供了更加便捷的个性化服务。在门店端，我们实现了全链路的数字化物料管理，提升了运营的效率。在供应链端，我们打通了上下游的数据，既保障了食品安全，也提升了供应链的响应能力。在企业后台，智能体和AI已经进入到我们各个部门的日常工作当中，来协助员工提升效率。接下来，我把这个四个领域逐一做个展开介绍。在服务消费者的每一个节点，AI都在发挥着不可或缺的作用。首先，我们通过消费者洞察平台，在新品上市数小时后，我们就可以收集并分析用户的需求，助力产品的快速迭代。那精细化的数据运营能力也让我们能够在24小时内精准触达超过2亿的精准客群，提升沟通的效率。我们品牌的点餐和会员的APP小程序至今一直保持着每周一次更新的更新频率，不断完善功能，也提升了性能。一方面满足业务的需求，同时也提升了消费者的体验。智能客服系统每天处理了超过15万次的客户来访，其中90%有AI协助完成，满意率同样也超过了90%。
在这里，我特别想跟大家分享一个肯德基APP最新的一个升级，AI点餐智能体。在AI推荐能力的基础上，融合了大模型的意图识别能力，让客户的点餐变得更加便捷。Demo一下。帮我用大屏卡点击进入我的靠山。把薯条换成薯条，饮料换成酒珍。好，这个目前，这个AI点餐智能体是正在推广的过程中，已经有将近50万的用户做过了尝试，也欢迎大家体验，也提出你们的给我一些反馈。然后你的每一个反馈呢，都是我们智能体能力提升的一个动力。 在门店侧，我们实现了从订货到生产的全流程的数字化物料管理。举例来讲，自动订补货系统覆盖了大部分的物料，系统建议餐厅确认。这既提升了效率，也保留了门店有自主决策的灵活性。智慧盘点为每家门店量身定制了盘点清单，实现了千店千面的盘点效率最优解。智慧厨房是基于AI的实时生产管理系统，帮助餐厅灵活应对高峰时段，以图像识别确保出品品质的稳定。这一系列有AI赋能的系统，把员工从重复性的劳动中解放出来，专注于客户服务，也让食品安全得到了全方位的保障。 在供应链领域，我们在食品安全物流订补货上面也实现了全方位的数字化管理。在食品安全方面，通过知识图谱主动识别并排除风险，提升管控效率。在物流环节，智能网络规划让货品更快更精细地流转到全国17,000家门店。在补货系统当中，精准预估助力供应商的协同，显著提升了整个供应链的响应速度和效率。最后，这些数字化的能力都是基于供应链控制塔和数据中台来支撑的。它整合了核心供应商、门店和物料三端的相关数据，通过AI算法辅助各项决策。 企业的后台，我们也融合了结构化数据和非结构化知识，让AI在广度和深度上实现了全面覆盖。那最底层是我们覆盖各个业务领域的数字化系统，持续产出并积累着海量的数据。中间层是各领域的数据中台，实现了跨系统的数据的互联互动，让我们的数据从资源变成了可用资产。当前我们聚焦在深度聚焦在财务、人事、门店开发等多个垂类业务场景，打造智能体辅助各个领域员工提升工作效率。 展望未来，我们会持续深化智能体的建设，迈向智能体2.0的时代。那智能体2.0我们会有三大升级。第一个，从人找AI的被动响应，升级为AI找人的主动服务。从单智能体的独立工作，升级为多智能体的协同。从解决单一任务，升级为赋能业务流程的重塑。我们相信智能体2.0不仅是数据的升级技术的升级，同时也是人机协同模式的全面的重塑。 我今天想用两个智能体，一个是开发智能体，还有一个是门店值班智能体，来看一看未来我们智能体是如何在这些业务场景中发挥作用的。那众所周知，门店的选址开发是餐饮行业的第一环，它既需要有大量的公域和私域的数据，同时也非常依赖于人的丰富的经验。目前我们正在打造的开发智能体，它深度融合了生成式AI和决策式AI，用智能体打通了开发全流程。举例来说，网络规划阶段，智能体可以调用AI算法进行点址推荐；合同审核阶段，智能体可以快速完成业务的内容的初审，并给出风险提示。在数字伙伴的辅助下面，我们开发专员将会更有效地支持未来我们2万家、3万家门店的开发需求。 餐厅运营一线，Qray智能体也要将要成为我们的数字伙伴。Qray智能体是以值班智能体为核心，整合了我们瑞系列的智能体矩阵，它里面包括迪瑞智能体、Cray客服服务智能体，迪瑞是外送的，共同为我们一线员工提供支撑。Qray的四大核心优势：第一，解放双手，通过自然语言的交互，脱手无接触，保障食品安全；二是具备实时响应能力，当判断有超卖风险时，及时提醒并自动生成相关的生产计划，大大提升了应急响应的速度；三是可以通过随时随地的回应员工的需求，你问我答，你可以来查数据，也可以查手册；四是通过多智能体的协同工作，各司其职，让一个员工的背后有多个数字伙伴在提供支撑。目前Qray在少量门店进行测试，并根据一线反馈持续在优化。明年我们会延展到更多的业务场景，并推广到更多的测试门店。我分享的最后呢，请大家通过一段Qray智能体的视频，直观地感受一下它是如何在餐厅环境当中发挥作用的。 你好，Qray。 你好，Qray。 你好呀，我是Qray。 小生好，我上班啦，有什么值班留言吗？ 今天Kisa上市，品质关键，知识应对给足，代言。今日值班的4名员工均已通过Kisa培训考核，其中李明是新员工，请予以关注。今天有一名员工突然请假，系统通过分析员工人力值，推荐小晴替班。 好的，帮我打电话给小晴。 正在拨打小晴员工电话。嗨，小晴，今天11点可以来餐厅顶班吗？ 没问题，我准时到岗。 重要提醒，监测到售卖趋势上升，系统将参考同类型餐厅的增幅比例，自动上调后续时段的置备量计划。 可以，立即调整。 已执行。 预警，接到大额订单，新奥尔良烤制存量不足，建议立即追加制作20件烤翅。 追加。 已调整生产计划，并提醒厨房伙伴。今天周盘日，根据系统分析比对，建议盘点纯牛奶和咖啡豆。 Qray，纯牛奶两箱，咖啡豆10袋。 收到，已自动更新。 Qray，我今天的工作马上就要结束了，请开启留言，明天中午11点用盘通订单。 好的，我会提前两小时在9点钟提醒伙伴，联系订单顾客确认。 早上好，开业前提醒，根据今日活动预估，已为您重点标出需关注物料，保障顺利营业，我随时支持。 生产计划已经完成，谢谢提醒。 温馨提醒，今日顾客很多，监测到35号桌出餐，比预计晚3分钟，我已第一时间提醒后厨加速。为了顾客体验更好，建议关注并与顾客互动。 不好意思，我们披萨正在制作，预计还需要3分钟，请耐心等待一下。 没关系。 刚刚接到一笔大单，60个披萨，为保障出餐速度和品质，建议立即协调小刘进行支援。 收到，已经安排。 高峰过去了，今天披萨的出餐品质非常优秀且稳定，给伙伴点赞吧。 确认。 小刘，今天Pizza做得很棒，谢谢。 今日联名套餐销售火爆，IP周边非常抢手，我已准备好附近餐厅的库存清单，是否立即发起协调？ 好的，请联系附近餐厅。 沟通完毕，建议安排员工前往精品店进行调拨。 送给你。 你好，我是Qray，你的超能AI助手。 好，百胜中国一直坚信，创新的数字化能力是公司发展的重要的助推器。展望未来，我们会不断地突破边界，携手AI，开创智慧餐饮的新篇章。在百胜中国，AI不仅仅是AI，它更是accelerate innovation的动力。感谢各位的关注和支持，接下来有请我的同事，首席供应链官黄多多先生上台。 谢谢Layla，我今天，各位来宾大家上午好，我是今天第二位地下工作者，来自百胜中国供应链的黄多多，很荣幸，今天为大家带来供应链部分的更新。那么百胜中国拥有世界一流供应链管理体系，那高效的组织能力帮助我们能够确保所有产品从田间到餐桌，端到端的闭环管理，采购和物流是供应链的基石，那赋能助力品牌的成长，研发是加速器，能够推动产品不断创新，食品安全是稳定器，能够保证整个供应链食品安全底线不动摇。 食品安全与可持续发展，一直以来都是我们的核心，长期坚持食品安全为第一要务，打造负责任的供应链生态体系，是我们的长期使命。在上游方面，我们通过多部门的一体化的采购，把具有竞争力的产品推向全国市场。在物流方面，依托覆盖5,000多个城市和乡镇的餐配物流网络，来保证产品的高效触达，成为品牌扩张到偏远地区以及下沉地区的有力支撑。 整体联动的采购策略，帮助我们多年来实现有效的价格管理，通过打造供应商的生态体系，应用多种价格的管理方法，以及协同的产品创新机制，这三个核心抓手，帮助我们实现了best in cost的战略目标。那过去几年，我们的产品成本的比例保持稳中有降，如图片所示，我们的核心原料9块7，对比每年的行情走势，我们始终走在市场的前列。 动态的价格管理方法，也帮助我们紧紧地抓住了市场的趋势，比如小龙虾是龙虾系列产品的核心食材，价格会受到市场需求、养殖量、天气以及水质多重因素的影响。而过去这几年，我们团队一直在追踪这些数据，实施了动态协同实时采买的策略，在产季的每一个相对的低点，迅速地锁定了采购量以及采购价，并累积所有的原材料的量。那这一优势，来帮助我们品牌多次适时推出了热门的小龙虾系列产品。 那么榴莲是我们另一个明星原料，为了保障供应上的确定量，以及避免这个供应链上的层层加价，我们启动了榴莲在泰国以及越南的直采。那么通过直采，帮助我们与上游的加工基地的链接更加紧密，在保障供应的同时，也大幅降低了采购成本。 Price locking也是我们价格管理的一个重要抓手，尤其是对大宗的物料。以胡椒为例，我们专业的团队长期tracking demand跟supply的一个变化，掌握了全球多个胡椒的种植产地以及量产的know how，通过签署锁量锁价的协议，来规避了胡椒的大幅上涨。 最后，针对去全球化以及关税风险，我们在多年前就已经布局了分散供给以及国产替代，比如针对奶酪类的产品，我们开发了新的海外供应商以及本土供应商，并通过联合的本土技术创新，我们到目前为止，是中国率先使用国产原制马苏里拉奶酪的餐饮公司。 此外，我们在2024年，我们上线了供应商全球招募平台，与供应商由之前的单向的筛选，变成了双向的丰富，为广大的中小型供应商提供了更多毛遂自荐的机会，也助力供应链打造内外结合、大小结合、新老搭配的良性的供应商铺。 那近几年，百胜中国也积极地来提升全球供应链资源，增加交流机会。2022年起，我们连续两次参加了由中国贸促会组织的链博会，与全球各地的供应商沟通互动交流业务，由此链接视野，共探未来。2024年9月，我们也参加了在英国伦敦举办的Procurious Prochain Live Summit，在面向全球的供应链平台上来推广百胜中国供应链资源。 内部的创新机制的升级，也助力我们优化采购策略。在过去几年，我们优化了原有的新品的上市机制，将以往各部门之间的串行线性的协作模式升级为多边双向的联动模式。那这一调整呢，通过多维度捕捉消费趋势、跨部门的亲密交流，以及协同供应商资源，优化了产品研发机制的灵活性，显著地提升了新品的上市效率以及爆品的转化率。所以呢，在新口味、新品类以及最低新盘性价比这三个方面，为各个品牌提供了更快、更省、更好、更爆的新产品。 那么过去三年，我们一起上市了1,600多个新品，在过去的12个月，销售额超过1亿元的单品也有100多个。那么综合各个品牌的产品需求，我们正在探索更加广泛的全部利用，从原料端到产品设计端，做到闭环互补，以consumer insight为导向，让不同规格、不同部位的原料结合品牌的策略，应用到不同品牌菜单最合适的位置。我们现在已经通过多个品牌的产品组合，拼出了一只鸡，也如同Warren所说，我们甚至把鸡毛也制作成鸡毛掸，用在丰富的整品上。那么未来我们的目标是在采购和物流当中，来持续提升资源以及物料的综合利用优势，打造更多个一。我们希望能拼出一头牛、一颗菜、一车货、一整张物流餐配网络。 强大的物流仓储配送网络，作为护城河的另一个支柱，也是我们支持品牌持续开店的底气。在夯实供应链效能的方面上，我们持续推进物流和采购的共建项目，从PCL加小的切配中心为起步，发展至PCL加蔬菜预切工厂以及面包工厂的三合一共建，并计划最终打造配送加包装加系列食品加工工厂以及设备工厂等多种生态聚合的百胜供应链产业园，发挥协同优势。除了能够实现配送成本极大下降之外，共建之后的上游原物料的共享以及物流的协同联动，也将达到极致高效。我们预计在2026年底，百胜首个三合一产业园将在山西大同竣工投产。那其他的工业项目也在同步的推进当中，其中包括济南、上海蓝翔、哈尔滨的三合一公园以及广州三家港的供应链产业园。 此外，我们正在积极尝试利用混合型的餐配网络来提升偏远地区的配送效率，来大幅降低物流成本。在保证食品安全的前提下，我们引入广大的社会化资源，与网络布局更大的企业来合作，形成更大广义餐配物流的一张网。 当然，物流自动化是以创新效率迎来的基础。两年前，相信大家在西安的干餐已经看到我们窄巷道四向车或者货到人的项目，也有了一个初步的结果。我们提升了仓储空间35%以上，操作效率50%以上。那并且在西安干餐自动化的基础上，建立了以上海蓝翔仓储的窄巷道四向车的体系，成为行业的领先。那么未来我们也会从四向车加自动化引导车到进一步的库类，多穿梭选在自动化的库类，大幅降低人工操作比例。同步，我们也在积极在江苏的淮安，全程测试无人驾驶货车，以及在江苏苏州测试机器狗的门店帮货项目。下面请看我们现阶段供应链automation VCR的实景。 好的，欢迎回来。接下来我们看一下我们的resilience的基础部分。我们知道从供应链的角度来说，食品安全的上游以及上游的上游的管理是极其复杂跟琐碎的。我们正在借助AI的力量来提升日常的管理效率，并已经深入到上游。我们正在开发利用云巡检系统以及AI诊断，那溯源到挑战最大，也最复杂的田间地头。在门店端，我们利用OAC加AI和自动预警，并规范员工的个人卫生设备保养以及餐厅清洁等关键点，来杜绝交叉污染，培养营运一线员工食品安全标准执行的好习惯。第三个已经上线的AI智检，用海量的披萨数据训练了大模型，确保送到消费者的每个披萨都符合质量的要求。由此，如Layla所说，我们供应链的食品安全及质量体系正在从M2M阶段步入到AI智能体时段，为品牌的下沉以及加盟业务的高速扩展保驾护航。 那么供应链的终极使命是可持续发展，百胜致力于打造负责任的供应链生态体系。如图片所示，我们取得的成绩远超预期，我们也获得了多项荣誉，当然获得认可并不是终点。不断推动我们上下游合作伙伴共同绿色发展才是我们的长期使命。那在此呢，我来总结几个阶段性的亮点。 那过去两年纸杯回收，我们覆盖了8,700家肯德基门店，共回收纸杯超过3,000多吨，并且有第一阶段的初级的制作餐盘、餐篮吸管到第二阶段工业化生产，制作成物流托盘已经获取到滤芯，并把这些成品也陆续计划在门店以及餐厨物流中使用。 我们也推动了牛肉供应商通过在饲料中添加特定的生物质酶，来减少氨气以及甲烷气体的排放，来提升料肉比的同时降低碳排对环境的影响。那么我们也同时推动了土豆供应商应用土豆皮堆肥技术，通过发酵以及堆肥处理减少环境污染的同时，也推动了土豆种植供应商来推动和燕麦相结合，实际三季两种保证保护土壤肥力的同时，也有效地提升了土豆的亩产量。 那么另外一点，营养均衡健康也是我们对国民的一个普遍承诺。为了响应国家健康中国2030的规划纲要以及国民营养计划2017-2030，我们不断丰富和优化现有的产品菜单，推出更多低盐低糖的新产品，如使用减盐版的马苏里拉、减盐版的薯条、无糖可乐、减糖版的九珍果汁等等。那么之前公布了截止到2030年的减糖减盐的目标正在稳步推进中。如果按照每年平均的进度来看，我们预计在2025年的目标将超额完成，基于此2030年的最终营养健康目标，在保证产品风味以及顾客体验的前提下，也有望提前实现。 最后，我们将持续提效创新，不断提升供应链的韧性，持续加深护城河，持续携手上下游合作伙伴，打造有责任可持续的绿色生态供应链，并助力品牌再攀高峰。谢谢各位。接下来把时间交给我的同事，百胜中国首席人力资源官丁志业先生。
Thank you, Dodo. Thank you. It's a pleasure to be here today with you. I'm Jerry Ding, Chief People Officer of Yum China. Today we've shared much about our RGM 3.0, our business strategy on the surface, right? Now I would like to bring the focus beneath the surface to people, our strong foundation. At Yum China, you hear this a lot of times today. We say RGM number one. RGM means Restaurant General Manager. They are the ones who keep our restaurant running smoothly every day, lead our teams, and bring our brand culture to life for customers. Over the past 12 months, our RGM turnover rate was only 8.3%, with an average tenure of nearly 12 years, reflecting our long-term commitment to caring for and to enable our people. We care deeply about our RGMs and have built a comprehensive benefit framework to support them. Beyond our core benefits, such as medical insurance, we offer supplementary benefits, including upgrade medical coverage of up to ¥1 million for RGMs and their families. These benefits also extend to our restaurant management team. Our care program also extends beyond that. Early this year, we launched a flexible benefit program offering over 20,000 restaurant crew members comprehensive, accessible, and affordable health coverage options. Behind these benefits are real stories. We have an RGM whose father was able to get life-saving heart surgery through our family protection plan. We also have an RGM whose cancer treatment expense was fully covered by our medical insurance. But RGM number one is more than just providing benefits. It is about empowering them. Today, our centralized recruitment and training platform now fulfills approximately 89% of our restaurant crew hiring needs. RGM no longer needs to spend long hours sourcing CVs. Instead, they submit a request, and a fully trained team member arrives at the store within only one to two weeks. With our centralized new store opening platform, tasks that used to take RGMs months of preparation are now being handled by our shared service. On average, this saves an RGM around 100 working hours per new store opening. We know that it is important to listen to their voice and recognize their achievements. Through our RGM voice platform, we continuously get frontline feedback, response around the clock, and close loop with timely resolutions. We are also delighted to share that more than 90% of KFC restaurant employees have been recognized and rewarded through our KBING program. Once centralized, AI could play a critical role in transforming how we manage people in our stores. AI supports every stage, right? From resume screening, to onboarding, to a 24/7 AI chatbot that handles almost 80% of restaurant teams' inquiries. This does not stop at hiring and training. The platform also brings staff scheduling, performance, and career development together into one seamless end-to-end process. With this system in place, employees have a clear view of their training, pay, recognition, and growth opportunities so they can take charge of their own development. For RGMs, these digital tools also free up time to focus on what truly matters: food safety, customer service, and developing their teams. One of our most important initiatives this year is Mega RGM. Today, we have almost half of our all RGMs are Mega RGMs. Rather than manage a single store, Mega RGM oversees two to four stores with their management team, leading a total of 60 to 90 staff. The model tackles three key frontline challenges. First, it helps fuel the RGM talent pipeline that we need to fuel the rapid store expansion. Second, it creates diverse and attractive career pathways for our frontline employees. Third, it enhances workforce efficiency so our team can deliver at their best. But we are not simply asking RGM to do more. We are helping them work smarter. The results speak for themselves, right? Mega RGM retention is strong. Turnover last year was only 5.1%, well below the overall average. Why is this a good job? People always joke that an ideal job is about 钱多事好离店近 higher pay, greater impact, and more accessible. In this case, it is true. Higher pay, Mega RGM earns 20% to 30% more, and top performers see an increase up to 50%. Pay is linked to the store managed, and the bonuses are tied to the sales. Greater impact, centralization, and digital tools have reduced the routine tasks, helping Mega RGMs lead multiple stores and focus on operations and team development. More accessible. This may sound counterintuitive, but with technology, Mega RGMs can monitor the store remotely even if they are not on site. Our one-system store management tool reduces unnecessary commute across stores by providing real-time operation data and automating routine tasks. Rather than just hear from me, we invite one of our Mega RGM, Deng Weiwei, to share his firsthand perspective from the frontline. 我是邓薇薇，2019年成为RGM，带两个管理组管一家店。在2023年开始Mega，目前带4个管理组管4家店。第一次听说Mega RGM是2022年，我当时的第一反应是："这怎么可能？"没想到两年过去了，我不但做到了，而且做得挺好的。成为Mega RGM后，我要负责4家店，接近100个人的团队。公司从减负和赋能两个方面，也给了我们更大的空间和更智能的工具支持。有了中台以后，我不用再亲自招人，训练好的员工可以直接到岗，开新店也能拎包入住。科技赋能也很给力，公司的数字化工具能让我随时随地地掌握我每家店的运营情况，让我有更大的精力把生意做大，把团队带好，让我更有价值感和成就感。去年10月，一年一度的模具展又来了，连续4天的爆单高峰也来了，挑战真的挺大的。我带着4家店一起去应对这次高峰。虽然叠加工作日、周末两个高峰，但人货场都是我自己的，相互支援，人手灵活，厨房互补。4天下来，整体营业额、顾客满意等各项指标都有了显著的增长。这一仗，我们领略到Mega模式迎战高峰的优势。同时，Mega模式还让餐厅的日常经营变得更加高效灵活，例如餐厅间人力的灵活调转、货物调配、降低损耗、共享仓储空间等。最后还想和大家分享我的一个小确幸：我这两年的收入提升了30%多，但比起收入，个人和团队的成长是最让我开心的。Mega RGM的体验就是：钱多了，管得更自然了，更有成就感了。我也期望公司能继续给到我们这样的机会和工具，帮助我提高决策效率，将更多事务性、重复性的工作移出餐厅，交给更专业的系统或部门，提供更多的培训，帮助我们提升能力。对我来说，Mega不是终点，而是新的起点。
We have already thousands of our Mega RGMs, like we just showed, but our mission is far from complete. We will continue to strengthen frontline enablement by first consolidating resources to build a one-stop service center. Second, drive franchising business by sharing operational know-how and providing flexible talent support. And third, strengthen our frontline teams and culture to support the growth of new modules and initiatives. To help our team focus on what matters most, we are now building five centralized platforms. We have now covered new store opening platform and end-to-end employee management. The other three are the customer support center, a dedicated team to help RGMs deliver greater customer service, particularly during the peak hours. Inventory management, automated tools for smarter ordering, replenishment, and stock allocation. Equipment maintenance, predictive maintenance, and faster repairs. Together, these platforms will make it simpler and focused for RGMs to run their restaurants efficiently. Building on that, we are making it even simpler for RGMs to get support and problem-solved by bringing all these restaurant supports under one roof, the one-stop service center. Instead of reaching to eight to six different shared service teams, RGM now can have only one single interface. Each RGM's request will be handled by a dedicated case manager for end-to-end accountability. Our closed-loop system ensures clear processes, measurable KPIs, and real-time feedback. So we call it 把简单留给餐厅，把复杂留给部门。
Keep simplicity in our restaurants, leave complexity to shared service. With the integrated system, that's become a reality. Let's now talk about how we enable franchising as a strategic growth driver. At the market level now, we have dedicated operation teams and development teams together with our franchisees who work hand in hand on site selection and construction. At the restaurant level, we provide qualifications and training standards and share the best practices to build a strong talent system. On the technology side, we give franchisees access to our system, our one-store store management platform, and soon our new one-store franchise service app. Over time, we will build a comprehensive franchise platform that supports every stage, from opening to daily operation, giving franchisees the skills to succeed. Last but not least, we are strengthening our frontline leadership to scale our new business modules. For example, we inspire our RGMs with role models from our top performers, excite them through engagement programs like the champion challenges that build new skills, and elevate their thinking with K creator camps and RGM forums to help them grow into cross-store leaders. At the same time, we are deepening our culture. This year, we refresh our company culture, embracing founders' mentality with truth-seeking pragmatism. Our leadership team regularly visits markets and restaurants to share these values, while RGMs live these values in restaurants. Initiatives like KBINGS and restaurant battles bring our culture to life in daily management, inspiring frontline teams to grow. At Yum China, people first is more than a motto. People are our most valuable asset, and our culture is the soil that helps them grow and strive. Like bamboo, deeply rooted in the culture soil, connected by shared value, resilient through every challenge, and always growing upward and growing wide into a forest. This is who we are, and this is how we grow. Thank you. Now let's welcome our CFO, Adrian Ding. Good morning, everyone. It's great to see everyone here in Shenzhen today. I'm Adrian Ding, CFO of Yum China. Thank you for joining us today. As Joey and our team have just shared, we're encouraged by the positive momentum in China's consumer sector. Consumer sentiment shows early signs of improvement. While consumers are rational, they're willing to pay for great quality, taste, value, and emotional value. Against this backdrop, we're well-positioned to capture the growth opportunities through the strategic initiatives that we discussed today. In my session, I'll focus on how we turn these strategies and initiatives into dollars and cents and provide additional color on our latest three-year growth algorithm, linking our strategic plans to financial outlook. As each of my colleagues have emphasized, innovation and operational efficiency are the twin engines that power our value creation algorithm. Today, I'll walk you through how these engines drive measurable results through balanced growth, resilient economics, capital discipline, and strong returns. Let me start with our growth algo. We maintain a dual-focus approach in driving both system sales and same-store sales growth. Our growth strategy is built on two pillars: footprint expansion, innovation, and operational efficiency. First, our footprint expansion is anchored by several key drivers: a clear growth runway in the underserved market, a portfolio of flexible store formats, and the acceleration unlocked by capital-light franchising. Second, and just as important, we seek to uphold high-performance standards that underpin our growth. That's why we've also built multiple levers to drive SSSG, even as our base becomes significantly larger. To put this into numbers, we target to deliver mid to high single-digit system sales growth from 2026 to 2028, while sustaining a 100 and 102 same-store sales index each year over the same period. We're not expanding simply for scale. We are building a stronger and high-quality store base, as well as supporting infrastructure to position us for the long-term success. China continues to present substantial headroom for penetration for our brands. As Joey has mentioned, our goal is to enter 4,500 cities and towns and to have more than 30,000 stores in China by 2030. By 2028, we expect to bring our brands to approximately 3,700 cities and towns across China, expanding our reach to over half of the country's population, up from around one-third today. To be able to achieve this, we're accelerating our store network expansion. We ended Quarter Three with over 17,500 stores. We'll get to 20,000 stores exactly as we promised end of next year. In 2028, we aspire to achieve 25,000 stores. This represents a double-digit net new store CAGR, supported by strong consumer demand for our brands, food services across all city tiers, and our relentless focus on innovation. To capture the significant opportunities here, we've built a portfolio of innovative and flexible store formats, each designed to expand our addressable market and meet the diverse consumer needs. We deploy the right store format to the right location, enabling rapid, focused, and capital-efficient expansion. In higher-tier cities, formats like KFC, Kung Pae, and Pizza Hut Satellite deepen our presence and improve our consumer convenience. In lower-tier cities, we leverage formats like KFC Small Town, Pizza Hut Wow, and KFC and Pizza Hut Gemini to unlock the significant and currently underserved opportunities with much leaner capital expenditure. For example, a KFC Small Town store requests less than 40% of the capital expenditure of a standard store. Looking ahead, innovation remains our core competence. We're also testing other new initiatives and concepts that, if scaled successfully, could add further upside to our outlook. We look forward to sharing more with you as they evolve. Together, these store formats allow us to expand faster and better serve the different needs of our consumers here in China. Now, let's turn to franchising. Franchising is a powerful accelerator in our expansion playbook. The capital-light approach enables us to unlock opportunities that are previously beyond our reach, namely in lower-tier cities, remote areas, and strategic locations. It helps us capture the incremental demand with both speed and capital efficiency. As of 2025, KFC and Pizza Hut franchise stores represent approximately 13% of our total store count. Between 2026 and 2028, we plan to open more than 3,000 additional franchise stores, raising the total franchise unit mix into the 20% range by 2028. For Pizza Hut in particular, we're raising the net new build franchise mix to increase to 40% to 50%, broadly in line with the KFC's level and up from the 20% to 30% today. Our franchise stores typically generate a third to two-thirds of the average sales of our standard equity stores. Given the lower investment and favorable cost structure, the payback for our franchisee stores has been quite healthy. For example, KFC Small Town's payback for our franchisees is two to three years. Franchise stores are expected to contribute to mid-tenths of our system sales growth by 2028. The share of revenue and operating profit is expected to reach high single-digit percentage. We also expect the OP margin of our franchise businesses to improve to around 10% by 2028. Beyond new store openings, same-store sales growth is an important driver for our overall business. While our expansion plans over the next three years are ambitious, we are equally focused on sustaining healthy SSSG. To this end, we have multiple levers in place to drive our SSSG, as both Wharton and Jeff have already covered in detail. I'll just highlight a few key points here. Our strong brand equity built over the past 38 years and deep emotional connection with our consumers remain a powerful differentiator. We continue to delight our consumers with innovative and tasty food and drinks at great value. Equally importantly, we offer exceptional convenience, aiming to be whenever and wherever our consumers need us through our super apps, mini apps, aggregator partnerships, and extensive store network, as well as the new modules such as K Coffee, Cafe, and K Pro. All these help us broaden our reach across a wide range of consumer segments and occasions. Over the next three years, we expect to drive 100 and 102 same-store sales index year over year. We aspire to reach a same-store sales index of 102 for the group and for our two core brands at some point within the next three years. This would effectively bring our SSSG back to the levels seen during the periods of higher GDP growth while operating on a significantly larger footprint today. Beyond our two core brands, speaking of emerging businesses, for Lavaza, the stores opened in the past two years are profitable in Quarter Three this year. As Maggie has shared, it is on a clear path to 1,000 stores by 2029. While its retail business is progressing towards $60 million of profitable sales. Meanwhile, our other emerging brands, including Huang Zi Huang, Little Sheep, and Taco Bell, are targeting a combined 1,000 store by 2028, supported by continuously improving store economics. We're disciplined in cultivating our emerging businesses, which is a force to contribute to our future growth and success. Now, let's turn to the other two cornerstones of our RGM 3.0 strategy, resilience and moat. These are equally important as growth in driving our long-term success. Our resilience is reflected in the continuously improving margins driven by structural cost advantages and operational excellence. Our moat, built on the core capabilities in areas such as supply chain, digital, and people, is demonstrated by expanding returns on invested capital. Together, these support our strong free cash flow growth. We are targeting an 11.5% plus OP margin and approximately 20% ROIC in 2028 and double-digit CAGR for free cash flow per share growth. These targets quite clearly demonstrate our resilience and moat. We're building a business that grows in scale, profitability, and durability all at the same time. Resilience starts at the store level. We continue to work on restructuring our cost base and improving our operational efficiencies, and it's paying off. KFC remains our resilient fortress. Consistent to the philosophies and guidance shared over the previous few years, we expect KFC to maintain strong retro margins, reaching 17.3% plus in 2028, even as they continue to scale. Pizza Hut has reached an inflection point, and Quarter Three marked the sixth consecutive quarter of year-over-year margin expansion, thanks to the operational efficiency gains. It is set to reach a higher than 14.5% retro margin in 2028. Together, our two core brands are forging a clear path for our overall margin expansion, with KFC providing a solid and high-margin foundation and Pizza Hut accelerating its performance. We're targeting a Yum China retro margin of 16.7% or higher by 2028. To achieve the retro margin expansion, we're actively managing our key cost lines while enhancing productivity across the whole organization. We expect cost of sales to remain at healthy levels, sustaining the benefits from Project REDEYE, Spending Better and Buying Better initiatives, and favorable commodity prices. As previously guided, our COS in the long term should stay within the range of 31% plus and minus 1%. COL, cost of labor, may see moderate pressure from wage inflation and the rising delivery mix, which we work hard to partially offset with the productivity gains. Occupancy and other costs are expected to trend downward through streamlined operations, better rent, and store capital expenditure optimizations. To achieve all this, we've embedded innovation and operational efficiency into every layer of our operation, from streamlining menus to centralizing key processes and deploying digital and AI. These efforts, together with our G&A leverage, strengthen the structural cost advantages and operational resilience, allowing us to navigate dynamic markets while growing margins. As a result, we expect to deliver steady improvement in our OP margin from 10.8% to 10.9% in 2025 to 11.5% or higher in 2028. Solid top-line growth, combined with sustained margin expansion, will drive a significant increase in our absolute operating profit dollars. We expect high single-digit OP growth CAGR from 2026 to 2028. Our formula is straightforward and proven. Growth multiplied by efficiency delivers greater profitability, which is a dynamic with scaling with precision. Now let's get to the capital expenditure. We remain disciplined in capital expenditure. We're targeting an average annual CapEx of $600 million to $700 million from 2026 to 2028, with 75% to 85% allocated to store development, including remodels. Per-store investment has been decreasing, as we've disclosed. In addition, we continue to make investment on remodeling, which also includes investment in our side-by-side modules like K Coffee, Cafe, and K Pro. Digital, supply chain, and infrastructure are key and central to driving our growth and efficiency, as well as deepening our moat. These areas are expected to account for the remaining 15% to 25% of our capital expenditure over the next three years. Here comes my favorite quote. As Warren Buffett once said, "A truly great business must have enduring moat that protects excellent return on invested capital." The moat that we've been building and deepening over the past few years, as presented by our management team today, helps us deliver exactly that. Operating profit is climbing. Capital efficiency is improving. With the incremental growth fueled by capital-light franchising, we expect ROIC to reach around 20% in 2028, up from 2024, which is 16.9%. Our team has walked you through key elements of the RGM 3.0 strategies. Our goal is to turn this execution into strong free cash flow. The key drivers for this are quite clear: solid operating cash flow growth, continuously optimizing disciplined capital expenditure, and a value-enhancing approach towards share buyback. Together, this would give us double-digit CAGR for our free cash flow per share growth over 2026 to 2028. That brings me to a topic that I know is important to many of you: capital returns. As this chart shows, we have significantly stepped up our capital return to shareholders in recent years. We're on track to return approximately $1.5 billion to shareholders each year from 2024 to 2026, or $4.5 billion in total. We expect to end 2026 with and also maintain a sustainable net cash position of $1.2 to $1.4 billion going forward. Looking ahead, our current plan for 2027 and beyond is to return our shareholders with around 100% of our free cash flow to parent company. That is our total free cash flow after deducting dividends paid to non-controlling interest in our consolidated joint ventures, primarily our KFC JVs, which will be approximately $100 million annually in 2027 and 2028. This is expected to translate into an average annual return of $900 million to $1 billion plus in 2027 and 2028, and exceeding $1 billion in 2028 and onward. In terms of allocation, we plan to increase our dividend per share over time, with the remainder returned through value-enhancing share buybacks. This approach is designed to balance and meet the diverse needs of our various long-term shareholders. To bring it all together, here are the key financial targets that will define our path for the next three years. We are excited to share the following. First, a 100 to 102 same-store sales index every year. Second, system sales CAGR of mid to high single digit. Third, operating profit CAGR of high single digit. Fourth, EPS CAGR of double digit. Lastly, free cash flow per share CAGR of double digit. These targets are built on the initiatives we discussed today. Importantly, our projections do not factor in any macro improvement, nor do they reflect the full potential upside from the new store models and initiatives which we are still developing currently. This outlook reflects our commitment to delivering long-term shareholder value, our confidence in future growth, and our discipline in executing our RGM 3.0 strategy. Lastly, the message I want to leave you with is simple. Our journey is about moving from strategy to results and from results to long-term value. That concludes our presentation today. Thank you. Thanks, Adrian. Please stay on the stage. Let me invite other speakers to join us on the stage as we move into the Q&A session. When we start the Q&A, if you have a question, please raise your hand, and our colleagues will bring you a mic. Please do limit your question to one so more people can participate. Before asking, please state your name and company name. Maybe give our management team a moment. All right, let's get started. Our first question from Luochen.
你在座的基本上都是Mandarin speaker，那就用中文来问吧。麻烦请同传的老师。美银证券罗晨，今天这个会从头到尾都是亮点和干货。当然了，最后Adrian的荡气回肠的这个结尾，你们有很多干货是投资者想要了解。但是对我来讲的话，前面我有觉得有两个亮点，一个就是周一开场的时候，大爷还是大爷。然后另外还有就是当时在会场上面，我们看到了鸡毛掸子，看到了猪脚饭，看到了锅盔。这个画风有点奇怪，让我想到了邪修这两个字。我真觉得我们真的是太不容易了，就是既要又要，既要接住流量，又要保住自己的brand integrity。实在是让我们觉得Yum SEI管理层就好像中国式的父母，方方面面都考虑得很周到。 那接着刚才的Adrian的那些指引，我这边有一个大问题。当然这个大问题也许可以break down成若干个小问题。因为我们一直投资者买我们Yum China，其实买的更多的是一个稳字。而今年确实是有外卖平台补贴的这样的一个红利。那么大家就是很担心明年。而Adrian提到未来几年的同店都是一个0%到2%的区间，而今年三季度的外卖已经到了51%。过去几年外卖一直是我们SSG的主要的抓手。那明年万一平台补贴大幅的回撤之后的话，我们对于明年的SSG怎么看，以及我们在背后的信心的来源是什么？ 同时长远一个问题的话，就随着外卖的占比在提升，我们想了解一下我们来自于公寓方面的流量，就是像类似于美团他们，目前占我们外卖的比重是多少？我们的私域这块占多少？未来有什么样手段来确保我们增长的主要driver不能够掌握在第三方手上，要更多的把主动权掌握在我们自己手上。
好，我来回答。
可以。
还有一个小问题，就是关于我们的股东回报的话，因为最近有太多的外资品牌在国内出售资产，我也不知道我们有没有兴趣。但是刚才提到的未来几年的股东回报计划是一个conditional还是unconditional，有没有已经把未来的各种各样的一些non-organic growth考虑进去？也就是说不管任何情况，这个一年9到10亿肯定能保障。好，就这个问题。谢谢。 问题很长。我希望可以说三个点，希望可以比较general的去回答你的问题。首先，这个外卖大战今年是个比较重要的事情。我比较简短的回答你，对我们明年这个数据没有太material，没有太大影响。为什么呢？因为从外卖大战一开始的时候，我们都想得比较清楚，因为这不是第一次。第一次是十年前，九年前差不多。所以我们也有一些的学习。所以一开始它就是一个比较，我们的反应是比较平稳的。It's a balanced approach。我们自己在短期内参与了一丢丢，不多。因为在饮的方面，比方说K Coffee或者是Lavazza，我们参与了一些去用一下流量。但是前提是什么？我不亏，我利润保持。对吧？在座股东跟投资人，就很多很美好的事情，很exciting的事情，最重要是赚不赚钱。这个是可以算赚的，而且这是高考的问题。你太DTA的那些就少干嘛。它亏在哪里呢？难在哪里？很DTA的不赚钱。我们这样一算，就比较清楚了，哪些单可以做，哪些单少干一点。所以短期我们非常balanced，也没有太贪心，也没有不进去。而且我们还借这个短期这样的非常热闹的状况，我们还跟平台之间把长期的一些安排也谈得比较稳妥吧，也长线的怎么安排费率，顺便也有一些比较长线的安排。所以对我们来说，明年这个补贴，因为现在其实饮的方面补贴已经下来不少，但餐的方面其实一直补贴都不是太多。所以我们没有，对我们来说，对其他品牌我不敢说，对我们来说，我们觉得还是manageable，还OK，不用太担心。这是一点吧。 然后第二点，从外卖平台对我们的占比，因为这个的外卖的比例上去，是不是多了一些？是多了一些，但是也是可控的，manageable。为啥呢？因为我们一直都是这么多年，不是坚持一年两年，坚持了十年了。战略就是我们自己对生意的掌握一定，这个掌握还在我们自己手里。哪管到了今天，我们掌握在自己生意，掌握在自己手里生意还是有个六七成的。因为我除了外卖，就是平台对我影响说，我还有堂食，我还有外带，而且我还有会员。会员我们有一些的促销只给会员的，鸡毛掸子只给来店的顾客。你不来店我还不送给你呢。你外卖我也不送，因为不够。所以我把最好的东西我们还是留给我们会员，甚至说堂食的。所以这两点我觉得应该刚才你大部分的问题都可以解答。第三个问题留给Adrian。
好的。关于capital return这个topic，我估计大家也都比较关心，包括在场很多国外的投资人，那我就用英文回答了。
On the second part of the question regarding capital return and some of the strategic transactions, obviously as a policy, we are not able to comment on any particular M&A transactions. But in terms of our philosophy, we have been adopting a very prudent approach towards M&As, and it will continue to be the case. We set a very high bar. Only to the extent of a transaction that creates a lot of value to our shareholders, when it's very strategically sound, then we'll potentially consider. It's worth noting that obviously all the M&A transactions are subject to rigorous internal discussions, as well as discussions with our board. That's the first part. The second part of that question on capital return in particular is, I guess what we can share at this point in time is we currently do not have a plan to change our capital return, which was shared earlier today, just now. We have been a very shareholder value conscious company, and it will continue to be the case. Hopefully that addressed your question, Luochen. Thank you.
Let's take our second question. Michelle from Goldman Sachs.
嗨，Joey，Adrian，白医生你们好。那我也用中文问。那我这边问，就是一开始还是想说一下，每两年聚在这边还是可以感觉到非常impressive，都可以有新的limitation，break new records这样子。那我这边的一个问题主要是关于竞争这一块的。就是Joey您一开始show了一个非常有趣的图，就是过去的这个三四十年，就是下面2到10一直在改变，然后我们always都是the number one。那但同时，我们这个churn ratio这几年其实还是比较低。那我们也一直维持在KFC就是一个一两个点的market share。那given现在这种这么dynamic operating environment，那我们也看到更多的机会可以penetrate到lower tier city、new white space。那有没有看到一个inflection point，看到这个market share gain的这个脚步可以变得更快一些？那同时，我们这一阵子也看到很多外资品牌有在讲这个ownership的改变。那能不能也请您comment一下说我们怎么看这个competitive landscape？那另外一个spectrum是我记得我们两年前在这个场合的时候，其实大家很担心一个local player，但现在基本上也没有人在讲他了。那能不能也讨论一下说这个整个competitive landscape？那可能跟这个有关系的是，我觉得这个guidance里面有一个蛮有趣的，就是我们提到2030年这个active member要变成四个亿。那有没有一些比较granular的东西可以跟我们分享一下这个active member跟normal member现在我们看到的这个operating metrics是怎么样？谢谢。
那个你来回答。
好，我回答一下竞争这个问题。我先跟大家讲两组数据。一是今年上半年北京整个餐饮行业的利润率是0.6%，上海是1.6%，那就是这个行业的利润是整个行业是比较微薄的。那第二组就是刚才也谈到了我们今年我们的门店的平均的生命周期，今年已经低于了两年。所以我自己的一个观点，一个品牌你如果想要基业长青或者要活得久一点，那一定要满足三个重要的条件。第一就是你要有穿透这个生命周期的这些经典的产品。那这些产品一定是经过岁月的洗礼，在消费者心里能扎根的。那一些网红也好，或者单纯靠低价也好，实践也证明了确实很难长久。那第二就是这个品牌你要有非常强大的供应链的能力和极高的运营的效率，这样会让你在竞争中保持韧性，或者像疫情这种极端情况来的时候，你扛得住。竞争对手扑上来的时候，你能打得赢。那第三就是品牌要有能力服务更多元的人群和更多元的场景。那它背后就是一个品牌不断自我进化的能力。所以我是觉得现在就是行业中的洗牌每天都在发生。那一个品牌它一定是能够不断地去自我进化，顺着消费者的需求不断地去改变自己，加上它超强的品牌力，那这个品牌未来的市场份额一定会增加的。我对这件事情非常有信心。
Let me comment on two things. One is the competition between the local and multinational, and then the membership. This is my humble opinion, and humble opinion only. I don't think the origin of whether a company is multinational or local is the biggest deciding factor about the result. What matters more is who is running the business. If we look at the local player, why they are so strong? By the way, we have so much respect towards them, and we keep learning from them. I cannot agree with Walter Moore. Our optimism is always good time builds confidence, bad time builds character. If it's challenging, that means we have something to learn from the local, like the lower tier city. We need to learn from them how to be very effective in lower tier city. We are learning, which is brilliant. Who are the local players? They tend to be run by the founders. Look at the local players. Founders run business. My God, founders, they are motivated, they are hardworking, they are insightful. Many ingredients that they have in order to be successful except brands or money. What matters in a company, of course, people first. Then you look at the multinational. I'm pretty straightforward to my fellow friends or whatever from all over the world. I do personally believe that cultural difference or even language difference is overrated. However, whoever wants to win in whatever market, particularly Chinese market, better have the bloody sharpest insight of business judgment. That is not only necessary, but also absolutely critical. If we look at the multinationals, I'm not only talking about my industry, overall, there are some really, really good multinational companies doing really well in China. If you look at the management team, there's something interesting. I'm not going to name some of them. They send their A team over, the best team over. Whoever, if they can make it work in China, then they might have a future career in their headquarters. That is the type of people they need to send over because this is not the market for soft people. This is for tough competitors. If the multinational only sends over the B team or C team, then I'm sorry. The top-notch MBA school does not give you any advantage in that regard. Well, I went to one of them, right? It's the real deal. We need real business people to compete. From my humble opinion, it really has very little to do with whether you're multinational or local is whether you have the best team. I have seen people who don't speak Chinese and work really, really well here, produce good results. Then come to the membership. We need another session to give more granularity of the active membership. It is sort of one of the first times we share about active members. What we want to get our team to focus on is to move from quantity to also quality. We've been building a very, very big membership space, so big that it's bigger than the US population. At the same time, we have been focusing on the quality. Therefore, Walton's number about for our best customer who has the black card, which is not for sale, only to be given from a brand to them, there are 1 million of those in China, not a small number. The minimum requirement is more than 100 times shopping with KFC a year. That's pretty high frequency. We want to drive frequency. We want to focus even more on the quality. When we look at what is active member right now, we define it as a customer who shopped with us in the last 12 months. It is about 265 million. We want more of them. Once we get to 12 months, we might look at six months and three months. One step at a time. This is the beginning. Thank you, Michelle. Our next question from Lilian Morgan Stanley.
谢谢。那我也用中文来问问题了。我就是觉得参加这么多年的Investor Day，咱们作为这么大的一个庞大的体系和市场，一直的number one，每一次都有新东西学，就感觉这个里面有很多诀窍。而且做到这样的成果非常不容易，因为整个过去三五年中国市场是怎么样，我们都知道。那么今天我的一个最大感受是，之前其实投资者也比较纠结的，就是我们在这么大体系下的同店。今年这次的未来的指引，咱们非常明确地说，每年同店都要做到0%到2%，而且在大幅扩店，这个速度还在加快的基础上。所以我想了解一下Joey或者是整个团队，这个信心是怎么来的。刚才大家也都说，有点感觉到我们的消费者信心稍微有点恢复。然后我们的Pizza Hut也是在大幅削减这个TK size，说现在我们差不多了。所以感觉到我们是不是这个same store有一块是我们pricing在过去几年一直下降的情况下，未来几年是不是能够看到一点点小的向上来拉动我们整个正的同店。然后接着这个小问题，我也再偷问一个小问题，一个这个额度有点不够。那就是KFC好像没有给明确的收入指标或者是system sales的指标，而且到2028年¥100亿以上的利润，虽然咱们是个大体系，但今年我感觉已经接近¥90亿了。所以这个利润增速不是太快。所以我想了解一下我们KFC到底怎么想的。谢谢。
看看这个问题我来。
好，我先讲一下我们未来同店，刚才问到信心来自于哪。其实从疫情结束之后，这几年和2019年之前，餐饮行业确实发生了巨大的变化。那从疫情开始，那周一带领下，我们也做了非常多的调整。那过去几年团队也真的去长了不少本事，也有很多一些新的心得。那我也举几个例子，比如说产品到底怎么做，如何通过产品带来销售巨大的增长。那对肯德基来讲，什么是我们最大的财富？就是我们这么多经典的产品。那如何去平衡好新品的创新和经典产品销量的推动？那过去这一两年，我们很多有意义的尝试，像刚才讲过，我们香辣鸡翅、香辣鸡腿堡，可以超过¥40亿。我们明年如果一切正常，我们肯定会过¥50亿的。那每年这些销售非常大的大单品，非常高的高效率的成长，肯定会带来销售的拉动的。那同样新业务现在也比较蓬勃。我一直也跟周一讲说我们品牌这两年运气挺好，做这个新业务成功率还挺高，从肯悦、K Pro到我们车数学等等。那这些新业务都是过去这一两年长出来的。那特别像K Pro，我自己也没想到年初开始做这个业务，跟Mike一起，不到一年的时间，已经120多家门店。本来想说今年试试水，可能开个十家、八家，看看行业是什么状况。那市场热情非常高，餐厅市场的总经理一看，这个赚钱，他们就拼命开。然后呢，这个咱们餐厅经理，因为开了新业务是兼并天，然后他会有更高的销售的增长，能拿到更多的奖金，然后餐厅经理也拼命地开。我们每天的工作还是要跟市场讲，说大家还是恢复理智，做好评估，这个业务呢，我们把它看清楚。我总之我想讲的是，第一，我们确实也看到了生意的抓手。那第二呢，团队也有这个热情，现在也有这个能力去通过更多元化的业务，更多元地去触达这些人群，带来销售的增长。那从我的角度，未来的几年，我们100到102的同店增长，品牌也是非常有信心的。那接下来时间交给Agent。
我来 comment 一下，然后到 Agent。这样。
We really are very grateful that this year we have the luxury to look at the long-term strategy. I call the long-term strategy a luxury because during the COVID time, we just had to be very, very efficient and effective in dealing with whatever unexpected thing. By the end of 2023, we already noticed that the market is not the same anymore. So by 2024, which is last year, that's when the challenge, looking back, the challenges are the most critical one, but at the same time, our team were the most productive one. Our team has a huge amount of innovation coming out of it. K Coffee, we started—when did we start K Coffee? 2024. I still remember our conversation. 2024, how many K Coffee we want to have extra growth driver? 2024, Pizza Hut has the vow. Because whatever we were doing seems to lose that momentum, we need something very different. We are very open-minded. The menu, the pricing, and the operation of Pizza Hut are completely different. But that's the beauty. When things are very challenging and we have an amazing team, then the innovation comes. Actually, to make it really, really simple, how do we define strategy, where to focus? It comes down to two factors: core competency or capability, and where are the opportunities? Two-by-two matrix, very simple. Where to focus? Whatever our team, we are excited about what we are good at. I'd like to summarize things into one sentence so that my entire group of RGM, 300,000 people team, they understand. 没本事，金子在你面前也捡不上来，有本事，怎么也找得到那块金子的。
Let me do my own translation. With the core competency, with the competent team, even when there's very little opportunity, we can see the pockets of opportunity, just like a piece of gold just shining at us. If the team is not capable enough, even the gold is in front of us, we cannot pick it up. This is—I learned it from Cantonese too. That's what we focus on. It works. It gives us a reasonable level of optimism. The market will continue to be challenging. By the way, with or without macro challenge, the China market is always challenged because it's so big. It has so many opportunities going forward. Why would anyone not want to come? We better take it for granted and try to find a way to focus on the high-growth one. With a good team, we will find opportunities no matter how and when. We'll move to the next one.
Sure. As to the particular breakdown by brands in our guidance, firstly, we would like to clarify that the ¥10 billion plus is a juncture, right? A whole figure, a milestone figure. What we mean is really we aspire to be the first brand to get to that milestone. That doesn't mean we give a guidance 2028 is ¥10 billion. We're definitely higher than that, right?
Plus. Look at the plus.
Yeah. Specifically on the breakdown between the brands, right? We would expect KFC's growth CAGR to be similar to the group's growth CAGR that we shared just now. Pizza Hut, as Jeff already mentioned in his presentation, that will be high single-digit system sales growth CAGR and double the OP in five years, which really translates to mid-teens OP growth CAGR, right? Which is a significant step up. By the way, I would like to add a couple of additional colors. That high single-digit system sales growth CAGR for Pizza Hut, we even expect next year to achieve that, right? Remember, this year is only like 3% to 4% system sales growth for Pizza Hut, but next year is a significant step up. That's on one hand, the breakdown between the two brands. Speaking of the group, I mentioned in my remarks that all the guidance we shared is prudent, meaning that we do not account for any improvement in macro, which actually we are confident there will be improvement in macro. We're confident about the China fundamentals. Also, it does not account for the full potential of the new store models and initiatives we are currently developing, right? We'll definitely update the market when some of these initiatives become more mature and scale. Lastly, I think it's important to note that we mentioned that we have double-digit EPS growth in the next three years, or double-digit FCF per share growth in the next three years on a CAGR basis. What does that mean, really? It means EPS growth coupled with our capital return that almost delivers to a shareholder without a multiple re-rating, delivers to our shareholder a 10% of almost guaranteed total shareholder return, right? I don't think the almost guarantee is the perfectly legally right figure, but a way to say it. As all of you may appreciate, the single most advantage for Yum China is really the execution certainty, right? Whatever we promise the market, we either meet it or beat it. Jeff told me just now that he would like to add some additional color on the Pizza Hut growth. With that, I will pass it to Jeff, please.
好，我开门几句必胜客。这个听上去我们还是比较有信心的，在对于未来五年。那我们的信心来源到底在什么地方？首先的话呢，我想说接着周一刚刚之前讲的，其实我们信心来源，最大信心来源是团队比以前更厉害了。不只是品牌团队，我们整个的supporting团队都比以前更厉害了。那particularly对必胜客来说的话呢，其实我们很早以前就开始我们现在的工作。我们知道说必胜客要加速成长，我们必须要进入更大的赛道，我们必须要进入更适合的价格段。这样的话呢，我们才能够以更高的频次服务于更多的顾客。 那在赛道上，我们不但把Pizza做得很好，我们在Pizza赛道里面毋庸置疑，我们拿到了一个非常大的share。那除了Pizza赛道之外，其实去年我们进入了一个更大的汉堡赛道，而且立住了脚跟。那除了多人用餐场景，我们还进入了一人式场景，我们服务于更多的刚需场景。那在赛道上，我们其实做好了一个准备。 那在价格段上，我们刚刚其实讲了，以前客单价是¥60，比98%的餐饮企业要贵。这个赛道其实对应的市场份额是非常小的。那现在我们落到客单价¥40左右，这个价格段所对应的市场空间要远大于我们在三年前、五年前这个我们所处的价格段对应的市场份额。这个我们对应的市场份额变得大了很多。 那这两个加在一起，那其实是让我们未来的空间完全打开了，再加上我们的能力。那未来我们是不是可以涨价？那我们在价格段，我们肯定有一点，我们价格段会越来越稳定。再加上我们现在一个非常强劲的同店客流增长，那这个会给我们同店上一个非常好的支持。那从涨价上来说的话呢，我们刚刚其实也讲了，我们会在高价格段推出更多性价比非常好的产品。这样的话呢，能够同时带动同店客流和客单价的一个提升。
下个问题来自小波吧。来，小波。麦克风。OK。
谢谢关利成。我是花旗的分析员魏小波。我第一个congratulations是那个Jeff。我还记得几年前在Joey那个printed里，您是一个，你们的business是一个吃面的中年男人，现在看着精神小伙。当时说是备胎，这次看着driver了。但是看起来您的赞助最大。如果看那个Agent的guidance里边，那个water的margin是平，您的margin要2.5个percentage point。我就想问一下，第一个，就是因为您这很重要了，以前我们都忽视你们这块生意嘛，您刚才讲了很多的抓手，您觉得确信度最高的抓手和确信度最低的抓手是什么？然后呢，就从一个运营的层面怎么去给你赋能，怎么把water的business给你赋能，这个怎么来从集团的层面来给你调配资源？谢谢。
好，你先来。
我们今天分享的在这个margin expansion上的这些抓手，都是确定性相对来说是比较高的。这个首先这个目标的确是非常非常的aggressive，我们大概到2028年我们要提升250个基点，相比2024年。那我们其实现在最最最最确定的抓手就是人效的提升，餐厅人效的提升。那这个的话呢，其实说起来容易，做起来也非常的不容易。我们其实已经有了分成四个方面来去做。首先是简化。我们其实充分认识到，作为一个休闲餐饮企业，我们的服务模式也好，我们的菜单也好，我们的运营模式也好，相对来说是比较复杂的。如果我们来看，比我们更大的餐饮企业，比我们更大的有更多门店的这个品牌，都没有我们这么复杂。我们其实是在我们这个体量最复杂的一个品牌了。这个复杂性的话呢，会让我们在提效上面，在提速上都会产生问题。所以我们今天要解决的第一个问题就是要简化。我们要简化菜单，我们要简化菜单背后使用的材料，我们要简化我们每个产品的操作，每个产品的步骤，我们要简化每一个我们的管理工作。这反过来讲，这对我们来说upside也很大，因为我们之前相对来说比较复杂。当然自动化，其实我刚刚所讲的一些在video里面也体现了，我们其实是大量使用了非常多的自动化的设备，比如说我们的这个自动的炒面机，我们自动这个撒料机，我们自动的传菜机，我们用了非常多的自动化工具来让我们的这些工作能够被自动化实现。在管理工作上也是一样的，从自动排班、自动订货，所有的这些管理工作绝大部分都已经被部分或全部自动化了。那我们的餐厅员工只要copilot就好了，餐厅管理组。之后的话呢，就是我们中台。那中台和这个sanity是一个对我们来说非常重要的东西，我们其实可以跟肯德基sanity，对吧？我们自己内部品牌内部也做了很多集中化的处理，集中化的预估、排班、订货等等，让餐厅的工作它的效率能更高。最后的话呢，其实我们不容忽视的话，就是一个激励，一线激励工作。我们其实不只是process driven，我们还是incentive driven，因为做Pizza这个事，我们很多的工作还是涉及到大量的一线员工的基础工作。怎么样让员工他愿意提效，愿意把东西做好，这对我们来说是个非常大的课题。我们也做了很多的研究，其实我们现在已经可以做到，这是非常不容易的，做到一个非常精准的incentive。因为你要做到的话，你就必须要知道员工做得快不快，好不好。那我们现在已经通过technology完全做到了这一点。所以通过对一线的赋能，我们可以让那些高效的员工能够有更好的收入，保留好这些员工，也可以激励员工，他能够持续地想办法去提效。
OK。
我介绍一下两个品牌相互赋能。我们今年有一个挺大胆的想法，其实周一的报告中也谈到了一个叫双子星。我们今年夏天在陕西省定军山，就是三国里那个定军山，我们一起做了一个双子星的项目。这项目什么样呢？就是两个品牌有各自的形象，然后各自的菜单，各自的用餐的环境，但是共用一个厨房，一支团队来管理。大家可以想象一下这个效率会有多高。那投资呢，本来肯德基一个小镇是¥50万到¥70万的投资，我们那个双子星一共投资也就是¥70万。进到餐厅的顾客，反正在肯德基的也点了必胜客，在必胜客的也点了肯德基。运营效率的提升，消费者的这种共享，我觉得这些，这可能就是我们两个品牌最早的一个探索。我真的相信未来集团内有非常多可以共享的机会，可以去挖掘。我觉得那个效率的提升可能都是一个极大的幅度的一个空间。
我来comment一下好了，用中文讲会更有感觉一些，在这个话题上。这个中国过去几十年很喜欢一个孩子吧，只生一个孩子。那大家可能很多都在一个孩子里面，这个家庭里面长大。那外国有很多品牌，他们也只爱做一个品牌，对吧？但是我们这里有几个品牌，最起码呢，还有两大品牌。那有什么好处呢？有实际的好处，也有心理上的好处。我先讲一下实际的好处，就是规模。做什么事情规模够大，规模够大，我们可喜欢规模了。一算呢，投入到IT，投入到Supply Chain，这完全不一样的。这个就作为market leader，它有一定的好处。那当然成本也不少，但是好处呢，还真的不少。第二呢，就是汪总刚才讲的相互赋能，两个品牌嘛，大家分享一下怎么做。还有个心理上的好处，不好意思，这个Jeff跟那个汪涛，有在座各位有的是不止一个小孩吧，魏小波你就两个孩子，对吧？你有两个孩子，你怎么样去互相激励他们？你看弟弟，你看哥多厉害，最近干了一二三。哥，你看弟弟多优秀，最近干了一二三。然后他们就会跟你顶嘴，我怎么样怎么样这样，但是他背后都是会偷偷的努力。所以呢，我呢，就往后一坐，就跟他，就最近这个肯德基干了啥啥啥，还错不错。汪涛，你看最近那个很多新创新，挺好的。这个心理作用，人的成长呢，要有一个好的竞争对手，没有竞争对手，无敌那是最寂寞。所以我也非常感激我们的市场的竞争对手，有了竞争对手刺激一下，自然思路更活络。所以多几个孩子有多几个孩子快乐，我就非常快乐。这么讲，哈哈哈，谢谢。我再加一句，其实哥哥弟弟都不喜欢你这么讲，对吧？那为什么把我跟别人比呢？不是我独一无二吗？我闯出一条路，对对对对。但全世界的妈妈爸爸都这么干的，都是哥哥怎么样，弟弟怎么样。为什么明知道这么讨厌还继续干？因为可有效了，真行的。Thank you, Joey, very insightful. Sorry, that's all the time we have for the Q&A, as we want to save some time for you to interact with management directly. For those of you joining online, this is the end of our webcast. Thank you very much for.