Pizza Hut 2002 Annual Report Download - page 17

15.15.
We want to be the best in the world at providing customers branded restaurant
choice. Our customers have told us very clearly that we can break away from the
pack when we offer two of our great brands in the same restaurant. Oftentimes,
our best ideas come from our franchisees. So we asked three of them their views
on Multibranding and Customer Mania.
Aylwin: Why is Multibranding such a big idea?
Larry: (opened first Taco Bell/Long John Silver’s) Multibranding has a dramatic impact on the customer. It’s a bar-
rier-breaker for families, meaning that sometimes kids like to eat different things than adults. If you’ve got an
A&W/Long John Silver’s, like we do in South Texas, you can see how it offers something for everyone. More glob-
ally, though, if you have a KFC/Taco Bell, you might get someone who wants a taco one day and who will come
back the next day for chicken. When we add volume to these restaurants through Multibranding, we add incre-
mental profits that we could not have gotten any other way. For example, if you take a good restaurant — like a
$900,000 Taco Bell — and add a $400,000 Long John Silver’s, you have added incremental profits that would be
impossible to get any other way.
Jackie: (opened first KFC/A&W) Multibranding offers our customers more variety. It creates an entertaining, fun
atmosphere in our restaurants for customers and Team Members and helps leverage the cost of land, buildings and
equipment. That ensures us a better return on our investment. When you’re adding a recognized second brand, it
increases sales a lot faster than if you just add new products to your primary brand. It also broadens the customer
base. We see younger people, more families and a steadier business through the whole day. Your food stays fresher,
your service more consistent and you don’t have to worry as much about how to schedule Team Members for the
slow times of day because there aren’t as many slow periods in your day.
Al: (opened first KFC/Taco Bell) Multibranding gives franchisees the option to leverage new and existing real estate
in order to reach a broader customer base. For example, placing two brands under one roof in more expensive city
locations helps pay the higher rent. Or, in smaller more rural areas with fewer people, the sales from two brands
justify the restaurant’s location, whereas the sales from one brand couldn’t. The challenge Multibranding presents,
however, is in the creation of great brand partnerships. The brands must complement, not compete with, one
TRANSFORMING THE QUICK-SERVICE CATEGORY WITH MULTIBRANDING: 1 + 1 = 3
ROUNDTABLE PARTICIPANTS:
From left to right, top to bottom:
1. Aylwin Lewis, recently named President,
Chief Multibranding and Operating Officer, is the
moderator of this discussion.
2.Franchisee Larry Durrett, President,
Southern Multifoods, Inc.
3.Franchisee Jackie Trujillo, Chairman of the Board,
Harman Management Corporation.
4.Franchisee Al Luihn, CEO, Luihn Food Systems
Left Veteran RGM Pam Jones has led her multi-
branded team to beat their internal sales targets
by 53%! Now that’s Customer Mania!
1. 2.
3. 4.