Pizza Hut 2005 Annual Report Download - page 15

2005 was another great year of
progress for Taco Bell. We delivered
positive same store sales growth in
every period — creating over four con-
secutive years of sustained growth.
Same store sales were up 7%, with
nearly half of the increase coming
from transactions. More and more people are discover-
ing that Taco Bell is the place to go when you want to
THINK OUTSIDE THE BUN®!
In 2005 we introduced one of the most popular
THINK OUTSIDE THE BUN products in our company’s
history — The Crunchwrap SupremeTM. This unique
product is the perfect combination of classic Taco Bell
tastes and textures made portable. In 2006 it perma-
nently joined our existing lineup of Mexican-inspired
products, like our delicious Grilled Stuft Burritos,
signature Quesadillas and wide-variety of Big Bell
Value MenuTM items.
It’s terrific that our great food, value and advertis-
ing are bringing more and more customers into our
restaurants. But what’s also exciting to see is that cus-
tomers are taking notice of our great people. In fact, in
2005 the mayor of Bryan, Texas proclaimed a “Reggie
Shivers Day” in honor of one of our team members.
The community had been asked to nominate a fellow
citizen who provides exceptional service, and Reggie
won by a landslide!
That’s exactly what we want our employees
focused on, delighting our guests each and every day.
We’re pleased with our progress in 2005, and now
we’re focused on our future. By working together to
grow our great People and our great Brand, we’ll con-
tinue to beat year-ago results — and make 2006
our best year yet.
We are Taco Bell and Proud of It!
We kicked off 2005 with Dippin’
Strips, a great product because it
attracted customers by being both dif-
ferent and relevant. Kids loved to rip
and dip...and adults loved a low-risk
way to try something new that would
please everyone.
We also appealed to our fastest growing segment with
our first-ever U.S. Hispanic product, Quepapas! Still spicing
up the market with rave reviews, Quepapas are ready to hit
an additional 700 restaurants. In October, we celebrated
our world-famous Pan Pizza’s 25th Anniversary in style with
a great family-value that resonated with consumers and got
in front of the competition.
We continued our strategy to rebuild and grow the brand
as well. By the end of the year, we opened more than 660
WingStreets and our 94th Pizza Hut Italian Bistro! Both are
huge growth drivers for us — Pizza Hut Italian Bistro is a ban-
ner billboard for dine-in customers who want a terrific casual
dining experience, and WingStreet is the perfect partner to
add incremental business to Pizza Hut.
So...in a year where we’ve had some difficult hurdles, I
am very proud of the work we did to accomplish such brand-
building work. We showed the world our huge heart in the
aftermath of some horrible natural disasters; we brought
some big new products to the market and touched people
with a reminder of our heritage.
We’ve got the greatest people in the world, creating,
selling and delivering the greatest, most innovative, sumptu-
ous pizzas in the world.... And we couldn’t be more excited
about what’s ahead for 2006!
We’d like to invite you to “Gather ‘Round the Good Stuff!®”
2005 proved to be the greatest sales
year in the history of Kentucky Fried
Chicken! We ended the year with 14
consecutive periods of same store sales
growth and three record-setting weeks.
From Sunday dinner to tailgating
parties and family picnics, we gave
customers the great home-cooked taste of KFC no matter
where they were.
Early last year, when customers asked for portability
and affordability, we introduced the KFC®Snacker, a snack-
sized sandwich made with a 100% white meat Crispy Strip
and topped with fresh lettuce and pepper mayo. Snacker
became our most successful sandwich ever, and one year
and 238 million Snackers later, we’ve rolled out three new
varieties — Honey BBQ, Buffalo, and Fish Snackers.
Our Build Your Own Variety Bucket made Moms the
hero all across America, letting her build her bucket with
more types of World Famous chicken and sides. Our new
Flavor Station was an industry first and let customers “be
the boss” and “choose their sauce” on wings, strips and
more.
In 2005 our restaurant teams were more energized
than ever. Customers rated their experience at KFC as
significantly improved — our restaurants were cleaner, we
were friendlier and more hospitable, and our overall service
was sharper. Plus, we made QSR Magazine’s top-ten list for
quick-service drive-thru brands for the third year in a row.
With our franchise partners, we made a huge invest-
ment to remodel our restaurants to bring to life a KFC
that’s a little bit bolder and a Colonel Sanders that’s a
little more hip. In everything from our advertising and
uniforms to the outside of our restaurants, we’re returning
to our roots and boasting that we are the one, the only
Kentucky Fried Chicken.
It’s always a great day in Chicken Capital USA™.
The Seafood Revolutionaries
We spent 2005 restructuring and
rebuilding our heritage as the seafood
brand of choice. We’ve tested and
developed a pipeline of new products
and have developed a brand positioning that reinforces our
innovative product heritage. We’ve added over 100 new
points of distribution and re-imaged more than 50% of our
restaurants. We’ve added 19 new LJS franchisees to our
system. We invented Fast Food seafood and with great new
quality products like our Popcorn Shrimp, we are reinventing
seafood for the way people eat today.
Our investment in operations continues to drive
customer satisfaction and we’re proud of how well our
teams are delivering Customer Mania. We’ve made steady
improvements in the national drive-thru speed of service
rankings — improving six points over the last two years.
With a new tagline, Yarr, Genius!™ , we’re ready to deliver on
our brand promise.
Hometown Food Made Fun™ The
A&W brand continued to expand
in 2005, resulting in system sales
growth. Why? Franchise multibrand
development with our sister brands
added points of distribution, and, in more than 70 restau-
rants, we rolled a new brand positioning that really says,
“Hometown Food Made Fun.”
Today, A&W means high quality core promotions, the
relaunch of the Papa Burger and an improved line of hot
dogs, Cheese Curds and a new line of Chili that delivers our
brand promise. Our Neighborhood Deals appeal to the value
conscious and our revved-up Sweets and Treats program
can tame a sweet tooth in more than 25 ways. Now that’s
variety made simple!
We opened our second state-of-
the-art, stand-alone A&W restaurant in
Kissimmee, Florida. Customers love
the food and the feeling of these
nostalgic new restaurants whether
they are age 7 or 70.
We’ve seen impressive
improvement in our drive-thru ser-
vice times, moving six places in
2005 to a #4 overall ranking in the
Sparagowski Speed of Service poll.
Is it any wonder we’ve added
more than 500 points of distribu-
tion since A&W and LJS joined the
Yum family? Now, there are even
more places to enjoy these great
brands...a trend we plan to continue!
Emil J. Brolick
PRESIDENT AND
CHIEF CONCEPT OFFICER,
TACO BELL
Steve Davis
PRESIDENT,
LONG JOHN SILVER’S/
A&W ALL AMERICAN FOOD®
Peter Hearl
PRESIDENT AND
CHIEF CONCEPT OFFICER,
PIZZA HUT
Gregg Dedrick
PRESIDENT AND
CHIEF CONCEPT OFFICER, KFC