Pizza Hut 1999 Annual Report Download - page 20

Download and view the complete annual report

Please find page 20 of the 1999 Pizza Hut annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

Tricon Restaurants International:
A World Ahead
What a year it’s been for our international
business. We’ve seen increased profits, contin-
ued development of operating systems, like
C.H.A.M.P.S., outstanding product launches, a
stronger franchise relationship and a culture
that is changing — for the better.
In 1999, our operating profit was $265 million —
that’s up 39% from 1998! We had an overall
improvement in company restaurant margins —
140 basis points ahead of last year.
HOW DID WE MAKE THIS HAPPEN? Employees have
embraced C.H.A.M.P.S. in strengthening cus-
tomer focus. Used globally in over 80 countries,
it’s now being implemented in the U.S.
KFC’s Twister debuted in some large markets
(Australia, the United Kingdom, Korea) and has
been a terrific success.
Pizza Hut introduced its version of the Big New
Yorker in Europe with hopes it will be big
internationally.
The addition of our new franchise partners has
allowed us to continue to build a solid franchise
system. The Franchise Partners Advisory Council
(FPAC) is a strong initiative for gaining alignment
and serves as a resource for TRI senior manage-
ment and franchisees to share business ideas and
best practices.
TRI has rebounded from economic turmoil in
Asia, posting over 70% operating profit growth
over last year. PH Korea more than doubled its
operating profit. KFC Thailand saw profit
growth of 40%. The continued progress
we’ve had in our established markets, like
Australia and the UK, is outstanding.
KFC Australia had same store sales
growth of 8%, while KFC same store
sales in the UK were up 5%.
We built over 600 new system units in
1999. Future projects will accelerate
development and position us for more in
the long term. In 2000, we’ll develop
Pizza Hut as the second strong brand in
China where KFC’s over 300 units
already stand on firm ground.
Global improvements from operating sys-
tems, like C.H.A.M.P.S., will strengthen our
customer-focused business. We’ve reduced
spending by nearly $30 million over the last
two years and will continue to grow our fran-
chise system.
TRI has enormous potential, and 1999 further
establishes credibility that we can deliver. We now
have scale, capability and focus to ensure a solid
growth platform for the future.
18