Analysis of Central Kitchen Capacity Utilization at Yuanji Food

Based on public information, Yuanji Food (Yuanji Dumplings), the largest Chinese fast-food enterprise in China, has the following central kitchen capacity status:

Yuanji Food has built an industry-leading integrated supply chain system covering “from source to store”[1][2]:

• Suzhou Yuanji Factory (put into production in 2018)
• Foshan Yuanhong Factory (put into production in 2020)
• In addition, there are three other self-owned factories
• New factories in Chengdu and Foshan are under construction
• Plans to build new factories in North China and East China in the future[1]

• 24 warehouses established nationwide
• Through efficient cold chain, raw materials are delivered “every two days” to cover over 70% of stores
• One of the rare Chinese fast-food brands in the industry that uses full cold chain logistics[2]

The number of stores has doubled in less than 3 years (from 1,990 to 4,266), and this rapid expansion puts high demands on central kitchen capacity[1][2].

• Capacity utilization rate reached 85% in 2024 (industry average 60%-70%)
• Chicken processing utilization rate 102.8%
• Ingredient processing utilization rate 94.5%

Although Yuanji Food has not publicly disclosed specific capacity utilization data, the following signs indicate:

1. Continuous Capacity Expansion
   : New factories in Chengdu and Foshan are still under construction, indicating that existing capacity may be relatively tight
2. Strong Store Growth
   : Annual new stores exceed 1,000, continuously driving capacity demand
3. Optimized Regional Layout
   : Plans to build new factories in North China and East China reflect the anticipation of insufficient capacity

1. Continuous Expansion Demand
   : The scale of 4,266 stores is still expanding rapidly, putting continuous pressure on capacity
2. Capacity Expansion Plan
   : New factories in Chengdu and Foshan are under construction, and new plants are planned in North China and East China, indicating that existing capacity cannot fully meet future development needs
3. Optimized Regional Layout
   : The layout of factories in South China (Foshan), East China, and North China reflects optimized capacity distribution rather than overcapacity
4. Cold Chain Distribution Efficiency
   : 70% of stores achieve “every two days” delivery, indicating high supply chain operation efficiency and relatively full capacity utilization

• As store expansion slows down, capacity utilization may experience periodic decline
• New factories require a ramp-up period after production, which may affect overall capacity utilization in the short term
• Increased difficulty in franchisee management may affect terminal demand, which in turn may impact capacity utilization

[1] Sina Finance - “Unpacking Yuanji Food’s Prospectus: Over 4,000 Stores Launches IPO Push” (https://finance.sina.com.cn/roll/2026-01-12/doc-inhhaeyi8218016.shtml)

[2] China Fund News - “Yuanji Food Submits Application to HKEX, Over 4,000 Stores” (https://www.chnfund.com/article/AR398f3500-492d-3643-0d17-3a1ec9449565)

[3] Pacific Securities Research Report - “From Breeding to Dining Table, the No.1 Leader in Chinese Fast Food” (https://pdf.dfcfw.com/pdf/H3_AP202509191746437443_1.pdf)