Yum China acquires controlling stake in Huang Ji Huang
Yum China has completed the acquisition of a controlling stake in the Huang Ji Huang group, a Chinese-style casual dining franchise business.
Headquartered in Beijing, Huang Ji Huang was founded in 2004 and has more than 640 restaurants in China and other countries.
The group mainly operates under a franchise model and its brand portfolio consists of Huang Ji Huang, a simmer pot brand, and San Feb Bao, a recently launched Chinese fast food concept in China.
With the acquisition of the controlling stake, Yum China will set up a Chinese dining business unit with three main Chinese dining brands, namely Little Sheep, East Dawning, and Huang Ji Huang.
Yum China plans to get a stronger presence and improved know-how in the Chinese dining space, which is said to represent a significant share of the dining market in China.
The acquisition is set to create synergies through Yum China’s scale and system capabilities, and Huang Ji Huang’s track record and capabilities of product research and development, franchisee management, and Chinese dining expertise.