Pizza Hut 1999 Annual Report Download - page 17

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Chicken QSR Sales
55% KFC
8% Popeye’s
6% Church’s
5% Regionals
26% Independents
Terry Davenport
Chief Concept &
Marketing Officer
KFC®: The Place For Chicken —
In a Bucket or On a Bun
KFC now has sandwiches! Long the favorite for
chicken-on-the-bone, KFC has entered the chicken
sandwich market.
Chicken sandwiches, one of the fastest-growing
QSR segments, has been dominated by the burger
chains. KFC is out to change that competitive
landscape with our new freshly made sandwiches
— Original Recipe®
‚ Tender Roast®
‚ Triple Crunch®
‚
Triple Crunch Zinger™ and Honey BBQ.
KFC launched sandwiches in mid-September 1999.
By the end of November, the QSR chicken sand-
wich market had grown at a faster rate than it had
anytime over the last five years. And KFC led the
way — driving more chicken sandwich growth
than any other QSR. In less than three months,
KFC’s share of the QSR chicken sandwich mar-
ket had increased more than five-fold.
“Mooove over, burger boys!” exclaimed the
animated Colonel as he led the advertising
and publicity charge for KFC’s sandwiches.
The lovable cartoon character has helped
our advertising awareness jump 50%
to all-time highs.
We also introduced programs to help
make sandwiches successful operationally.
With special equipment and an intense focus
on training and recognition, we successfully
added “freshly made” sandwiches to our
restaurants while simplifying operations
and improving service speed.
Speed is so important to on-the-go sand-
wich customers that we declared 1999
“The Year of Speed.” The emphasis
worked. Consumers now rank KFC
fourth out of 12 national QSR brands
in speed of service — jumping from
seventh in just one year.
For five years, KFC had same store
sales increases. But 1999’s 2% same store
sales increase was somewhat disappointing.
However, we’re confident that the products and
programs put in place in 1999 should have positive
long-range effects on our brand.
In 1999, KFC franchisees and company operators
built 190 new restaurants and upgraded another
200 — even more activity in restaurant develop-
ment than last year’s aggressive action. These new
restaurants are generating outstanding results
and increasing shareholder value in our brand.
KFC will continue to grow both chicken-on-the-
bone and great on-the-go products like sandwiches
and strips. With a bold new look on an increasing
number of new restaurants, we’ll build our brand
for a new generation of chicken lovers. 15
Chuck Rawley
President &
Chief Operating Officer