【True Burn Hong Kong Stock Trends】KFC's independent coffee brand 'K Coffee' officially opens its 200th store
Above: KCOFFEE Hangzhou Xiaoshan International Airport Store
Above: KCOFFEE Hangzhou East Railway Station Store
$YUM CHINA(09987.HK) announced that KCOFFEE, the coffee brand under KFC, has officially opened stores at key transportation hubs, Hangzhou East Railway Station and Hangzhou Xiaoshan International Airport, reaching the significant milestone of 200 stores.
Since the beginning of this year, KCOFFEE has significantly accelerated its store opening pace, achieving what is called the "KCOFFEE Speed"—almost opening one store per day. Leveraging the "side-by-side" model (where KCOFFEE stores are adjacent to KFC stores) and KFC's extensive network of over 2,000 towns and cities across China, KCOFFEE has been able to expand rapidly into different cities, including special locations like airports and tourist attractions. For example, Hangzhou East Railway Station, where one of the 200 stores is located, saw a daily passenger flow exceeding 300,000 during the Dragon Boat Festival holiday. With the recovery of tourism, strategic locations such as train stations and tourist attractions are expected to maintain strong growth in foot traffic.
By setting up independent storefronts and dining areas, KCOFFEE creates a warm and inviting café atmosphere. Sharing equipment with KFC restaurants allows KCOFFEE to offer unique products like Snow Top Coffee and Sparkling Americano without additional equipment purchases. The "side-by-side" model also significantly reduces KCOFFEE's investment and operational costs. On the supply chain front, KCOFFEE benefits from KFC's centralized procurement advantages, gaining stronger bargaining power to lower procurement costs while maintaining healthy profitability.
Additionally, KCOFFEE's strong product innovation capabilities and affordable prices have helped it stand out in the highly competitive market. From the refreshing Sparkling Americano series to the classic return of Snow Top Coffee, many of KCOFFEE's products have sparked discussions among thousands on Xiaohongshu, becoming viral hits. To celebrate the opening of its 200th store, KCOFFEE launched its latest creative product—Egg Tart Dirty. This product uses a tart shell as a container, filled with milk and coffee, blending the rich aroma of coffee, the crispiness of the tart crust, and the buttery flavor of the milk base. It combines the crispy texture of egg tarts with the rich taste of Dirty coffee, paying homage to KFC's classic egg tart.
To date, KCOFFEE has expanded to 31 provinces and over 120 cities across China. Beyond high-traffic transportation hubs, KCOFFEE is also actively targeting strategic locations like university campuses and tourist attractions. For instance, in April, it opened a store in Shigatse, Tibet, taking advantage of the unique location near Mount Everest Base Camp. In May, it opened a store in Linquan University Town in Suzhou's Dushu Lake Higher Education Zone, continuing to expand its reach among young college students.
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