Yum China’s CEO Joey Wat Innovates by Observing Customer Behavior

Joey Wat, the CEO of Yum China—owner of KFC, Pizza Hut, Taco Bell, and other fast-food brands—has a unique strategy for developing new products. She spends hours inside Yum China restaurants, observing customers as they eat. Speaking at the 2024 Fortune Global Forum in New York City, Wat revealed that she often devotes “two or three hours” to watching diners in action, a practice that has inspired new menu items, such as KFC China’s “mashed potato burger.”

Wat mentioned that her observations revealed a trend among Gen Z customers, who enjoy dipping fried chicken into mashed potatoes before adding gravy. She explained that this insight led to the creation of the boneless “mashed potato burger” to simplify the dining experience by eliminating the bone.

Wat emphasized the importance of paying attention to customer behavior, noting that some insights come from direct observation, while others are gathered from discussions with store managers. Her customer-focused approach has contributed to KFC’s status as the most popular fast-food chain in China, boasting over 11,000 locations nationwide.

Wat’s hands-on strategy is not unique among top executives. Sam Walton, the founder of Walmart, was known for flying his private plane across the U.S. to make unannounced visits to stores. Similarly, Laxman Narasimhan, former CEO of Starbucks, completed barista training and committed to working behind the counter for half a day each month. Starbucks’ current CEO has continued this practice, maintaining a strong connection with the frontline staff.

Jason Buechel, the CEO of Whole Foods, is also a regular on the shop floor. Fortune reported in August that Buechel visits the supermarket “at least twice a day, every single day,” with a particular interest in the cheese section and salad bar. Even during vacations, Buechel’s routine of exploring stores persists. His office, located above Whole Foods’ flagship store in Austin, allows him quick access to observe operations and discover new products.

Another prominent leader, Bernard Arnault, the founder and chairman of luxury conglomerate LVMH, dedicates his Saturdays to store visits. He personally inspects the stores of brands under his group, including Celine, Louis Vuitton, Christian Dior, and Tiffany & Co., to stay connected with his customer base and maintain brand standards.

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