3 6 Ke·2025-12-24 03:19Core Insights - Yum China CEO Qu Cui Rong stated that the 6 yuan KFC coffee can still be profitable, which has drawn industry attention [1] - The low price strategy is supported by extreme cost control and a unique store opening strategy called "shoulder-to-shoulder" [1][2] Group 1: Business Strategy - The "shoulder-to-shoulder" strategy involves renting out idle space in existing KFC locations to reduce labor and rental costs while managing both chicken and coffee operations [1] - This strategy has been identified as a key factor in KFC coffee's profitability [1] Group 2: Store Expansion - KFC coffee has accelerated its store expansion, adding approximately 300 new stores in the first two quarters of 2023, with plans to exceed 1,500 stores by year-end [2] - The target for store growth was raised to 1,700 in Q2, and by Q3, the number of stores surpassed 1,800, with expectations to exceed 5,000 by 2029 [2] Group 3: Pricing Strategy - KFC coffee continues to implement a low-price strategy, offering coffee at 6 yuan with monthly cards and various promotional activities [2] - CEO Qu Cui Rong emphasized the importance of maintaining a balance between resilience, growth, and a competitive edge without resorting to excessive spending [2] Group 4: Industry Trends - Other coffee brands are also engaging in aggressive pricing strategies, with some offering coffee for as low as 3.9 yuan [4] - The increasing prevalence of low-priced coffee has led to a price war in the industry, raising concerns about quality degradation and market sustainability [7] Group 5: Market Dynamics - Some brands, like Luckin Coffee, have started to increase prices, indicating a shift towards establishing a higher price point to differentiate from competitors [8] - Analysts suggest that a cautious consumer trend is emerging, where customers prefer better quality products at acceptable price points, necessitating a focus on quality alongside price increases [8]