Pizza Hut 1999 Annual Report Download - page 23

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21
three years. In fact, our plans indicate that 40%
of our U.S. system new unit growth will come
from multi-branding.
We want to get the most out of our existing
units, and since only 30% of our company assets
are at our current image standards, our plan is
to upgrade our company units to standard by
2004. These upgraded restaurants should expe-
rience a same store sales increase of 10-60%,
depending on the current state of the asset — so
you can bet that we’ll continue to invest in our
assets over the long term and expect our fran-
chisees to do the same.
CHRIS CAMPBELL, SENIOR VICE PRESIDENT, GENERAL
COUNSEL AND SECRETARY: Fifth and finally, we’re
targeting consistent performance by leveraging
our enormous scale. We call this the Power
of YUM, a systemwide commitment to drive a
one-way, one-time approach and to zap out
redundancies wherever they may exist. So rather
than duplicate efforts, we’ve begun operating as
one system, sharing everything from informa-
tion systems to accounting functions to media
buying. We’ve also teamed with our franchisees
to form the largest purchasing cooperative in the
restaurant industry. The cooperative pur-
chases more than $4 billion in product
each year for the Tricon system — every-
thing from cheese to restaurant signs —
resulting in substantial savings that
allowed us to absorb inflation and
increased costs from product promo-
tions and introductions.
We are also working with our
franchise partners and the
Pepsi-Cola company to
forge an industry leading
beverage arrangement for
the Tricon system in the
United States.
In the future, we’ll be doing all we
can to drive sales and maxi-
mize profits with even
further initiatives — all
designed to improve upon
each great result we deliver.
We have infrastructure and
management teams in place
to do so, as well as a growing
track record of identifying
unique and profitable oppor-
tunities within the market. And
today, we see these opportuni-
ties in every direction we look.
Chris Campbell
Senior VP, General
Counsel & Secretary
Mark Cosby
Chief Development Officer