Restaurant giant Yum China takes over Chinese chain Huang Ji Huang
TOKYO, NNA – Yum China Holdings Inc., China’s largest restaurant chain operator, has taken over Huang Ji Huang group, a casual-dining franchise business famous for its Chinese stew pots.
In a statement on Wednesday, New York-listed Yum China said it had completed the acquisition of a controlling stake in the Chinese dining operator which has 640 restaurants in China and abroad.
Yum China did not disclose details of the transaction which followed an agreement for the takeover between the two parties in August last year.
Founded in 2004 and headquartered in Beijing, Huang Ji Huang is an industry leader serving Chinese stews in simmering pots. It also operates San Fen Bao, a newly launched Chinese fast food concept in China.
“With Yum China's scale and system capabilities, and Huang Ji Huang's track record and capabilities of product R&D, franchisee management, and Chinese dining know-how, the acquisition is expected to create synergies,” the company said.
Following the acquisition, Yum China will establish a Chinese Dining Business Unit to manage its three core brands – Chinese hotpot Little Sheep; East Dawning, which is a fusion of KFC concept and Chinese cuisine; and Huang Ji Huang.
Operating 9,200 restaurants in over 1,300 cities as at end-December 2019, Yum China is a licensee of U.S. Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, Pizza Hut and Taco Bell. Yum China also owns the Little Sheep, COFFii & JOY and East Dawning concepts.