KFC is moving into China’s matured tea drinks segment with the opening of its first Grandpa Comfy Tea outlet in Suzhou.
The new shop offers tea beverages priced from US$1.94 to US$3.34 per cup. It also offers ice cream jointly created by KFC and Swedish food company Oatly Group.
Grandpa Comfy Tea’s logo depicts Colonel Sanders dressed in traditional Chinese clothing and holding a cup of tea. The shop interior echoes the Yangtze River Delta’s style.
According to report, China’s market for tea drinks is saturated with nearly 60% of tea companies failed within 3 years, and a quarter lasted for only a year. A spin-off tea brand like Grandpa Comfy Tea might have room for development, supported by KFC’s brand power, the multi-brand catering sector experience of operator Yum China Holdings, and its strong supply chain.
