Joey Wat redefines fast-food innovation by observing customer habits, echoing a hands-on leadership trend among global CEOs.
In the bustling fast-food landscape of China, Joey Wat, CEO of Yum China, has found her secret ingredient for innovation: observing customers in action. Overseeing brands like KFC, Pizza Hut, and Taco Bell, Wat dedicates hours in her restaurants, keenly watching diners as they interact with the menu. Her method, both simple and profound, underscores the power of understanding customer behavior at its core.
Speaking at the 2024 Fortune Global Forum in New York City, Wat shared her approach, which led to the creation of KFC China’s unique “mashed potato burger.” “I often spend two or three hours just observing customers eat,” she said. This practice uncovered a trend among Gen Z diners, who creatively dipped fried chicken into mashed potatoes before adding gravy. Wat translated this behavior into a boneless burger designed to simplify the experience while keeping the beloved flavors intact.
Wat emphasized that valuable insights come not only from direct observation but also from conversations with store managers. This customer-first mindset has played a pivotal role in making KFC the most popular fast-food chain in China, with over 11,000 locations nationwide.
Hands-On Leadership: A Global Trend
Joey Wat’s leadership style aligns with a growing trend among top executives who prioritize direct engagement with their businesses and customers. Retail titan Sam Walton, the founder of Walmart, was famous for unannounced store visits during cross-country trips in his private plane. Similarly, Starbucks’ leadership sets a benchmark in frontline involvement. Former CEO Laxman Narasimhan completed barista training and worked in stores monthly—a tradition that continues under the current CEO, reinforcing connections with employees and customers alike.
Jason Buechel, CEO of Whole Foods, mirrors this approach. Known for his regular visits to the shop floor—particularly the cheese section and salad bar—Buechel immerses himself in the day-to-day operations of the Austin flagship store. Even on vacations, his curiosity drives him to explore other outlets.
Luxury giant LVMH’s founder and chairman, Bernard Arnault, is another champion of hands-on leadership. Every Saturday, Arnault inspects stores of the group’s iconic brands like Louis Vuitton, Christian Dior, and Tiffany & Co. This personal attention ensures the maintenance of high standards while offering Arnault a direct line to the customer experience.
The Impact of Observational Leadership
Leaders like Joey Wat exemplify how direct observation and grassroots involvement can drive innovation and maintain excellence. Wat’s mashed potato burger is more than a quirky menu item—it symbolizes a commitment to meeting customer needs creatively and effectively.
By staying connected to the ground level, these leaders bridge the gap between strategy and execution, ensuring their brands remain relevant and customer-focused. In a world of evolving consumer expectations, this customer-centric leadership may be the ultimate key to sustained success.
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