Yum severs China

Yum Brands, the parent of KFC, Pizza Hut and Taco Bell, is just weeks away from jettisoning its troubled China unit and hopes the move cuts down on volatility and boosts growth.

The fast-food chain operator decided last year to cut its China operations following bad publicity connected to poor food handling from a former supplier. Trouble marketing Pizza Hut added to the woes, which included double-digit declines in restaurant sales for several quarters.

Looking ahead, the company will start to focus on becoming more of a franchiser. It owns the majority of its restaurants in China and franchises more throughout the rest of the world. It hopes to boost its franchise presence following the exit from China while strengthening its Taco Bell brand.

Yum CEO Greg Creed has noted the encouraging performance of KFC and Taco Bell in the U.S., despite the “sluggish” trends in the fast-food industry.

The company has said the new structure will yield lower risk. It says key elements will include building brands through franchises, a leaner structure and championing the customer experience.