Pizza Hut 2001 Annual Report Download - page 17

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HERE WE GROW AGAIN
TRICON RESTAURANTS INTERNATIONAL From
Hong Kong to Malaysia, a Customer Mania revolution is
taking hold — driving customer loyalty and differentiating
the brands through 100% CHAMPS with a YES! And
there’s one thing for certain — this maniacal focus on the
customer is driving global growth — growth in sales,
growth in profits and growth in new units. We’re certain
that’s the same word we’ll be using to describe our inter-
national business from here on out, since expanding our
global business is one of Tricon’s key growth strategies.
In 2001, system sales grew 9 percent and
ongoing operating profit rose 12 percent on a
comparable 52-week basis, excluding foreign
currency conversion. Most notably, we achieved
significant local currency ongoing operating
profit growth in key businesses, including
Greater China (up 39 percent), the
United Kingdom (up 33 percent),
Korea (up 20 percent) and our Asia
franchise businesses (up 32%). We
also grew our international presence by
adding more than 1,000 new units
globally, mostly with our franchisees. That’s
almost three new restaurants opening somewhere
outside of the U.S. every day of the year — marking our
second year in a row of record new store openings.
In fact, in China, our fastest growing and most
profitable country outside the U.S., we opened our
500th KFC and 60th Pizza Hut restaurant in 2001. Our
China business volumes and margins continue to be off
the charts, and KFC has been rated the number one
brand in the entire country! In 2001, between KFC and
Pizza Hut, we built almost 100 new units in the UK and
over 80 new units in Korea, where we have the best
Pizza Hut business in the world.
We also had big wins with new product launches
last year, such as the Tempura Twister in Japan, and
Satay Twister in Australia. New promotions, such as
the “Hot & On Time or
It’s Free” guarantees in
Australia and Korea,
and the introduction
of the Colonel’s famous
KFC bucket in China
have added to our
revenue growth.
There’s no doubt
— our team’s focus on
Customer Mania is the
fuel that has made this
growth possible. We’ve
launched the rollout of
our quarterly Customer Mania training in all of our key
markets. It’s our commitment to build an operating
culture based on 100% CHAMPS with a YES! attitude
and a system that earns customer smiles with more
value, improved service and better facilities.
We’ve seen four straight years of growth in local
currency system sales, profit and development. With the
breadth and depth of our leadership, a great relationship
with our franchisees, plans for more than 1,000 new
unit openings in 2002, and customer satisfaction
foremost on our minds, we’re confident TRI is headed
for much more growth and success in the future.
15
Pete Bassi
President
KFC 65%
Pizza Hut 33%
Taco Bell 2%
International System
Sales by Brand
SOURCE: CREST
CREST employed new tracking
methodology in 2001, therefore
percentages are not comparable to
prior years’ results.