Yum Brands plans KFC makeover in China market

The U.S. chain is planning an "unprecedented" overhaul to its China menu, will leverage Chinese celebrities in its publicity and revamp its store design and packaging, Yum said in a statement on Thursday. Yum gets more than half of its overall sales in China and plans to open 700 stores there this year.

KFC, Yum's key brand in the China market, has been hard-hit since official media reported that chicken it purchased had been fed excess antibiotics in late 2012. Revenues dipped, with China sales at established restaurants falling 4 percent during the fourth quarter of last year.

Sam Su, vice chairman of Yum Brands Inc, said in the statement the overhaul would involve new packaging, store designs and digital initiatives to help marketing and sales.

Yum, the largest fast-food chain in China with over 6,200 stores, has seen its market share held flat over the past five years, with around 41.2 percent in 2012, according to data from research firm Euromonitor.

U.S. rival McDonald's Corp had around 14.7 in the same year.

(Reporting by Adam Jourdan; Editing by Stephen Coates)

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