Business Intelligence on Retailing, Franchising, and Consumerism in China

Pizza Hut Launches Franchise Business In China

To support the development of Pizza Hut brand, Yum Brands announced that the group has now fully launched its franchise business in China.

According to Yum, Pizza Hut China's franchising operation model requires the franchisees to take over an existing restaurant, instead of opening a new restaurant. With this model, franchisees do not need to start from the beginning, which can help them avoid the troubles of site selection, store preparation, and employee recruitment and training. By taking over an existing restaurant from Yum, franchisees will face lower risks and higher success opportunity. The franchise contract period is ten years.

Pizza Hut's franchise development plan shows that the company will select suitable restaurants to be franchise store options. After assessing the qualification of franchisee applicants, the company will recommend a few franchise store options and franchisees can select from those options.

However, Yum will not allow franchisees to apply for the operation of a specific restaurant and they cannot choose a specific city to run the franchise restaurant.

Yum said that their franchisees should have enthusiasm for the brand and the dining industry, good entrepreneurial qualities, successful enterprise management experience, and over CNY3 million realizable funds. Meanwhile, the franchisee applicants need to be willing to handle the daily operation and run the pizza restaurants themselves.

Image Credit: TonyV3112

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