KFC and Pizza Hut China Are Changing the Game with Genius Customer Insights
In the fast-food world, innovation and staying ahead of trends are key to success. While many companies rely on data, technology, and marketing teams to drive product development, one fast-food giant is taking a more personal approach. Joey Wat, CEO of Yum China—the parent company of KFC, Taco Bell, and Pizza Hut in China—has a unique method for understanding what customers really want: she watches them eat.
Yes, you read that right. Wat spends hours sitting in KFC and Pizza Hut restaurants, observing how people eat, what they enjoy, and how they interact with the food. And this strategy is paying off big time, helping create some of the brand’s most popular and unexpected menu items.
The “Chicken Killer” CEO Who Watches Customers Eat
Joey Wat is affectionately called the “chicken killer” by her son, but this nickname isn’t just playful—it highlights the massive role KFC China plays in the country’s food culture. Wat shared at the 2024 Fortune Global Forum that KFC China alone kills 1 billion chickens every year. To put this into perspective, China has a population of about 1.4 billion, and the country as a whole consumes 8 billion chickens annually. That means KFC China accounts for a significant portion of the chicken consumption in the country.
But it’s not just about selling more chicken; the secret behind KFC’s popularity in China isn’t just slick marketing or the latest tech. According to Wat, it all comes down to one thing: listening to customers—and by that, she means literally watching them eat.
How Observing Customers Leads to Menu Magic
Wat’s hands-on approach is what sets Yum China apart from other global fast-food chains. She doesn’t just rely on reports or market trends; she watches how people actually enjoy their food. For example, during her many hours spent observing customers in KFC restaurants, Wat noticed an interesting trend: kids dipping fried chicken into mashed potatoes and then into gravy.
This simple observation led to a game-changing idea: why not remove the bone from the chicken and create a boneless mashed potato burger? It turns out this idea was a massive hit. The new item quickly became one of the best-selling menu options, because it perfectly matched the way young customers were already eating their food.
Wat’s approach highlights an important point: real-time customer insights can lead to some of the most successful products, even when the idea sounds unconventional at first.
A Smelly Success: Durian Pizza at Pizza Hut
It’s not just KFC that benefits from Wat’s customer observation tactics. Pizza Hut China also saw huge success by embracing bold, locally inspired choices. One of their biggest hits in China? Durian pizza. Yes, the infamous Southeast Asian fruit known for its extremely strong and often unpleasant smell is now a top seller at Pizza Hut.
Despite its reputation as a stinky fruit, durian pizza has taken China by storm. According to Wat, one in every four pizzas sold at Pizza Hut is the durian variety. In fact, last year alone, the company sold a staggering 30 million durian pizzas.
While many would consider durian too controversial for a pizza topping, Wat’s team saw the opportunity to embrace local tastes and cater to customers who were already asking for it. Her decision to introduce durian pizza didn’t have to go through the usual approval process with the Yum! corporate headquarters in New York or Kentucky—since Yum China became an independent company in 2016, Wat’s team had the freedom to experiment and take risks.
The Freedom to Innovate: Why Yum China Has the Advantage
What makes Joey Wat’s leadership so effective is the freedom to act quickly. By operating as an independent company, Yum China doesn’t have to wait for approvals from executives in the United States or elsewhere. This autonomy allows Wat and her team to make rapid decisions based on customer demand, which gives them a unique advantage in a fast-moving market.
As Wat points out, trying to introduce a durian pizza in the U.S. would have been nearly impossible—not because the product wouldn’t sell, but because it would require approval from people who don’t understand local tastes. In China, however, durian pizza wasn’t just an experiment; it became a massive sales success.
Learning From Real-Time Data: The Secret Sauce to Success
By taking a hands-on approach and observing real-time customer behavior, Joey Wat has been able to launch menu items that not only meet but exceed customer expectations. The ability to quickly adapt and experiment with new ideas, like boneless chicken burgers and durian pizza, gives Yum China an edge in the competitive fast-food landscape.
Wat’s insight into how Chinese customers enjoy their food has led to sales boosts and increased brand loyalty, proving that sometimes the best way to innovate isn’t through complex data analysis but through simply watching and listening to your customers.
The Future of Yum China: More Surprises Ahead
Looking ahead, Yum China is likely to continue embracing this customer-driven innovation strategy. As the company expands and adapts to changing tastes and preferences, it will undoubtedly keep watching, learning, and experimenting with bold new ideas. Whether it’s the next big fried chicken item or an even more daring pizza topping, Joey Wat and her team are proving that listening to customers is the most powerful tool a brand can have.
