Yum China begins construction of $27.9m logistics hub

Fast food restaurant licensee Yum China has invested RMB 183 million ($27.9 million) to begin construction of a new logistics hub in Chengdu, China.

Yum China – which owns the exclusive rights to fast food restaurants such as KFC, Pizza Hut and Taco Bell in China – claims that the new Southwest Supply Chain Support Center will significantly enhance the firm’s supply chain capabilities and cold chain logistics service in southwest China.

The company claims that the new supply centre will cover an area of 34,000 square meters, and is expected to be operational by mid-2022.

The new logistics hub will reportedly combine integrated supply chain services, Internet of Things (IoT) technology, big data platforms and high-quality cold chain logistics facilities.

The centre will support Yum China’s existing supply chain network, which includes 25 logistics centres and seven consolidation centres, collectively serving more than 1,500 cities in the country.

Joey Wat, CEO of Yum China, said: “From the opening of the first KFC store in 1987, to over 10,000 stores in more than 1,500 cities today, a world-class smart, efficient and agile supply chain has always been essential to our growth.

“The pandemic in 2020 reinforced Yum China’s determination to further invest in our supply chain infrastructure to better respond to external challenges. Looking forward, Yum China aims to create a stronger and more agile supply chain network to support the company’s long-term growth, allowing us to reach the goal of 20,000 stores even faster.”