Yum China Acquires A Controlling Stake In the Huang Ji Huang

Yum China Holdings has acquired a controlling interest in the Huang Ji Huang group, a Chinese-style casual dining franchise business, it announced on Wednesday, April 8. 

Yum China will combine Huang Ji Huang’s operations and establish a Chinese dining business unit comprising two other existing brands, Little Sheep and East Dawning. 

“Yum China aims to gain a stronger foothold and enhanced know-how in the Chinese dining space, which represents a significant share of the dining market in China,” it said in a statement. 

China’s food catering business added 9.4% percent last year to 4.67 trillion yuan (US$658 billion), according to the National Bureau of Statistics. 

Beijing-headquartered Huang Ji Huang has over 640 restaurants in China and overseas markets. It was founded in 2004. 

The group operates primarily under a franchise model and its brand portfolio consists of “Huang Ji Huang,” a simmer pot brand, as well as “San Fen Bao,” a newly launched Chinese style steamed rice bowl chain.  

The acquisition is expected to create synergies by combining Yum China’s scale and system capabilities, and Huang Ji Huang’s track record and capabilities of product research and development, franchisee management, and Chinese dining know-how.

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