Insights from the Dining Table
At the 2024 Fortune Global Forum, Joey Wat, the CEO of Yum China, shared her innovative approach to understanding customer preferences. Known for her hands-on management style, Wat dedicates hours to observing how customers interact with KFC and Taco Bell menus.
The Billion Chicken Question
In her presentation, she revealed that KFC China, a major player in the fast-food industry, is responsible for the consumption of over 1 billion chickens annually, making significant contributions to the nation’s protein intake. This staggering figure illustrates the company’s impact and its pivotal role in the culinary landscape of China.
Creative Menu Innovations
Wat’s unique insights extend beyond mere observation; they translate into innovative menu items that resonate with customers. For instance, she noted how children at KFC often dip their fried chicken into mashed potatoes and gravy, which inspired the creation of a boneless mashed potato burger, a hit among young food lovers.
The Unlikely Success of Durian Pizza
Not stopping there, Wat’s keen observational skills also led to one of Pizza Hut’s most successful offerings: durian pizza. Despite its notorious strong smell and divisive reputation, this exotic creation has captured the hearts (and stomachs) of many, showcasing the diverse taste preferences within the Chinese market. “One in every four pizzas sold right now is durian pizza,” she announced, demonstrating how closely observing customer behavior can lead to unexpected product success.
Independence Fuels Creativity
The freedom that came with Yum China’s separation from its parent company, Yum Brands, has allowed Wat to explore grassroots ideas without needing approval from international heads. This has enabled her to test concepts that may have otherwise been dismissed by traditional corporate structures. “Thank God we did not need approval from Yum!” she exclaimed during the forum, highlighting the agility that independence provides.
Making Innovations Heartfelt
Wat’s mantra appears simple yet profound: “Just watch with heart.” This approach emphasizes the importance of genuine connection to customers and their experiences as a means to drive innovation. By spending time in restaurants, she and her team are able to gather invaluable insights that lead to authentic customer offerings.
The Future of Yum China
As Yum China continues to evolve, it exemplifies how observation can lead to profound understanding and better product development. Joey Wat’s dedication to her customers and her willingness to innovate could serve as a model for businesses worldwide looking to enhance their connection with consumers.
