After many years of rapid growth, Kentucky-based restaurant operator Yum! Brands is now projecting a drop in same store sales for the fourth quarter, as Chinese consumers adopt austerity measures.

Yum! Brands, which operates fast food chains KFC, Taco Bell and Pizza Hut, said same store sales for the quarter are expected to decline four per cent in China compared to a 21 per cent gain a year ago.

The last time Yum! Brands reported decrease in same store sales was in 2009 when sales dropped three per cent.

The company says full year same store sales in China will rise by six per cent only.

However, the restaurant operator is optimistic about its performance in the market in the future. Next year’s development for China includes opening 700 new restaurants, down from 800 this year.

“We are extremely confident Yum! China remains the best growth story in the restaurant industry,” says chairman and CEO David Novak.

“Next year will be another strong year for our China division, given this year’s record development of at least 800 new units and significant innovation in the pipeline, underpinned by world class operations,” he said.

Yum Brands currently operates more than 38,000 restaurants in 120 countries.

GB