Following today’s trading update from Yum! Brands which revealed that the group enjoyed a 9% sales growth in Q4 2021, with a notable $6 billion in digital sales;

Hannah Cleland, Consumer Analyst at GlobalData, a leading data and analytics company, offers her view:

“Yum! Brands’ focus on digitalization has paid off, helping the company to navigate the tricky emergence of Omicron, which upset the steady easing of restrictions and return to on-premise outlets across the globe.

“According to GlobalData’s 2021 Q3 and Q4 global consumer surveys, 47% of consumers globally have been continuing to or are ordering takeaways more frequently in both quarters*. We can see that takeaways have clearly been adopted as part of regular routines, despite the relaxation of COVID-19 restrictions in most markets.

“Recognizing this, Yum! Brands has streamlined its services by investing in artificial intelligence order management systems and strengthening its e-commerce website and app integration. These moves helped the company to identify and predict its customer’s behavior patterns, and safeguard against travel restrictions.

“However, while these investments put Yum! Brands in a better position, it has not been immune to all the challenges plaguing the foodservice industry. Local sourcing will be an important sustainability trend for companies in the next few years. GlobalData’s global survey found that one third of consumers said menu options with locally-sourced produce were influential in their choice of foodservice restaurant**.

“Given the consumer backlash that it previously faced in Australia and Kenya for not sourcing its ingredients locally, it is clear the group must prioritize making its supply chain more sustainable to minimize sales losses.”