Yum China Holdings, Inc. announced the opening of its Digital R&D Center with three sites in Shanghai, Nanjing and Xi’an.
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The inauguration of the Digital R&D Center represents an important milestone for the Company’s strategy to build a dynamic digital ecosystem comprised of the Digital R&D Center, joint venturing and third party collaboration, to provide a solid foundation for Yum China to further develop its brands and businesses, accelerate expansion and capture market opportunities.
The Digital R&D Center will consolidate and expand dedicated resources to develop new solutions and services using technologies in big data, artificial intelligence (AI), middle office and digital SaaS to drive end-to-end digitalisation. The Digital R&D Center will bolster Yum China’s in-house digital capabilities across various functions, such as consumer-facing, store operations, smart delivery and supply chain management.
“Digitalisation is one of the key enablers behind Yum China’s resiliency and long-term development as we move toward our next milestone of 20,000 stores,” said Joey Wat, CEO of Yum China.
“The Digital R&D Center is an important part of our investment strategy as we apply cutting-edge technologies to digitally transform stores and drive operational excellence,” continued Wat.
“Evolving consumer behaviour, such as increased off-premise dining, and the Company’s accelerated development, place more demand on our R&D capabilities,” said Leila Zhang, Chief Technology Officer of Yum China.
“We believe the establishment of the Digital R&D Center will significantly strengthen Yum China’s internal digital capabilities and support sustainable business growth by using advanced technology for real life applications,” continued Zhang.
As a pioneer of digitalisation in the restaurant industry in China, Yum China launched a digital program several years ago. With the establishment of the Digital R&D Center, the Company will have more dedicated resources in its restaurant operations for building topnotch digital infrastructure. The Company will continue to cooperate with external partners such as scientific research institutions and other industry leaders to implement leading edge technology.
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Yum China has earmarked US$1-1.5 billion of investment over the next five years in digital and technology. As an integral part of this initiative, the Company plans to invest approximately US$100-200 million and to employ up to 500 staff in the Digital R&D Center to support the company’s growth over the next five years. The Digital R&D Center in Shanghai, Xi’an and Nanjing will be able to tap into the large talent pool at the top universities in these cities. With additional resources, the Company will further enhance our digital capabilities, as well as accelerate innovations and implementation.