Joey Wat: For KFC and Pizza Hut, they are very different business in a way, right? One is clear result, very clear result. And the other one has a very big portion in dine-in and casual dining, which is very, very unique. So they will be different. And we talked quite a lot about the KFC already, so I’m going to focus on Pizza Hut in response to your question, Lillian. Pizza Hut will start the turnaround back to 2017. And our focus has been, drive the traffic first and then drive the sales. Once we get the sales under control, we move on to make it more profitable, sales first, profit later. I presume you can still remember. But after we get the product under control, then we work on the store expansion and resiliency. So for this year, 2022, let’s not forget, Pizza Hut opened a lot of stores this year.
This is the record opening store year for Pizza Hut. Over 300 stores. That’s — well, at least we are very happy about it. So I hope the shareholders are happy about it, too. So what is mix for Pizza Hut is, open more stores by increasing the scale. But one very important topic for Pizza Hut going forward is their resiliency. And I think, as I mentioned earlier, in the last question from Anne, right now, KFC’s resilience is slightly better than Pizza Hut. And therefore, our focus on Pizza Hut going forward is more store and better resiliency. How to do better resiliently? The satellite store. Other than all the operational improvement will continue the satellite store. The satellite store is fabulous. I mean, right now, between the satellite store and the other smaller store, we have about 20% of the portfolio, about 600 stores in this category, satellite stores 60.
So these are very low investment store, but with very good sales positivity. And the payback is key is for the satellite store. For total new store for Pizza Hut, this takes us three years. Two-year payback. Well, after 30-some years of Pizza Hut business, this is the best payback store model for Pizza Hut. So you can imagine, we’re going to open more of these. When we open more of the satellite store, a smaller store, you can also imagine the delivery business will also benefit as well. So I think I hope €“ I hope that you can see our focus for the business is very clear. We know what we are doing, and we do it in our own pace. It’s like running a marathon. At the beginning, it takes some time. But once we are at certain speed, we’ll run it at a certain speed because we can.
Thank you.
Lillian Lou: Thank you, Joey.
Operator: Thank you. Your next question comes from Lin Sijie from CICC. Please go ahead.
Lin Sijie: Thank you, Joey and Andy, and congrats for another resilient quarter. So I have one question, which is more about the whole picture. So regarding the recovery of Chinese consumption, we find that, the recent recovery even, after the Chinese New Year, of the shopping more traffic and restaurant sales is really good in some cities, like maybe Chengdu, Chongqing, Changsha, but I’m not sure if it’s common situation nationwide. So since we have extensive layout in most regions and most city tiers, what is our opinion? I wonder will there remain different for recovery among regions and city tiers in the future? Thank you.
