Pizza Hut 2007 Annual Report Download - page 16

In 2007 we increased our Pizza Hut system
same store sales by 2.8%. We drove these
sales increases with new consumer-centric
insights surrounding our greatClassic Pizza
products—Pan, Hand-Tossed, Cheesy Bites, and Stuffed
Crust. We also brought back the delicious P’Zone—a full
pound of abundant pizza ingredients, sealed inside aHand-
Tossed style crust. And at NewYear’swe introduced the
revolutionary Pizza Mia, a value-oriented product, priced
at 3 for $15!
We’realso market testing the family-sized restaurant-quality
line of Tuscani Pastas. This is afirstfor our QSR business,
and is acompletely unmet need in the QSR category—
there is no restaurant-quality Home Meal Replacement pasta
available today.The Tuscani Pastaproducts will go national
in the spring of 2008.
Pizza, Pasta, and athird feature of our Home Meal
Replacement family—Chicken products—are in our restau-
rants, or delivered to your door! Our WingStreet products
and our blue-ribbon winning sauces are moving toward
national distribution. We’realready in over 1,100 units —
and we’ll add as many as 3,000 more points of distribution
within thenext fewyears based on anew agreement with
our franchisees. By theend of 2009, we’ll be in aposition to
advertise America’s largest wing chain on national television!
We’reAmerica’s Favorite Pizza, and will soon be America’s
Favorite Pasta, and America’s Favorite Chicken Wing
provider. We’reconfident that we’ll continue to deliver
breakthrough products and results at Pizza Hut for 2008
and beyond!
Scott Bergren
President and
Chief Concept Officer
Pizza Hut
Taco Bell is the second most profitable QSR brand in
the U.S., with a54% share of theMexican QSR category.
Muchofthis success can be attributed to our innovative
spirit, which began 46 years ago with Founder Glen
Bell. Whether it’s our people, our products or our promotions,
Taco Bell is abrand where 3LM[VM *LU[LY -LLSZ 9PNO[
2007 was no exception. Unique productofferings like ourSteak Grilled
Taquitos and Chili Cheese Nachos Bell Grande®encouraged customers
to THINK OUTSIDETHE BUN®..And in 2008, we’re spicing things
up more than ever with products like our NewFiesta Platters—a com-
plete meal of Soft Tacos or a Grilled Stuft Burrito served with seasoned
rice, hearty beans, chips and chunky salsa. We’ve also introduced our
new Fresco Menu that offersnine tasty and filling items —each full of
the Taco Bell taste our customers love,all with less than 9 grams of
fat each!
Not onlyare we offering THINK OUTSIDETHE BUN food products,
but customers will also soon have thechance to “drink outside thebun”
with Frutista Freeze™,our new proprietary frozen beverage launching
this summer.Initially offered in Strawberry and Mango Strawberry, it’s
a refreshing, smoothly blended, frozen fruit drink topped with real fruit.
Innovation is also thename of thegame when it comes to our
CustomerPromotions. For instance, we featured loyal customers
in the first-ever “Avatarsement” for our Fourthmeal program, thelate
night meal between dinner and breakfast. And we really gave baseball
and Taco Bell fansacross America something to cheer about when
theyreceived afree Beef Crunchy Taco as part of our “Steal a Base,
Steal a Taco” World Series promotion with Major League Baseball!
Looking forward, we believe that our future successliesnot just in
growing our share of the Mexican QSR category,but also in growing
our relevance as a full-serviceQSR Mega Brand. Glen Bell’s pioneer
spirit will continue to drive us forward, ensuring that Taco Bell is always
3LM[VM *LU[LY —and never left behind!
Greg Creed
President and
Chief Concept Officer
Taco Bell
KFC is one of thefewbrands in America that canboast
about having a rich 55-year history, and you can’tbe in
business that long without alot of success along theway.
2007 was marked with several breakthroughs, the most
After three years and a$500 million investment, nearly 80% of KFC
restaurants have afresh,new look. And, with our franchise partners,
we also accelerated thetesting of our vision restaurants. Outside, they
are a dramatic red color and shout out to customers that something is
different at KFC. Inside, they are warm and inviting, aplace to share
lifewith friends.
As asystem, we are investing in our kitchens and improving the work
flowtobetter serve customers, especially at lunch. And for our restau-
rant teams, we’re generating pride and energy through an engaging
program that was featured in the >HSS :[YLL[1V\YUHS called “Creating
a Great Place to Work.”
Our dinner business continued to grow in 2007 as we gave moms even
more reasons to connect with theirfamilies around the table. In fact, when
we gave moms abucket of our Original Recipe®chicken at an afford-
able value, we recorded the strongest dinner sales in our 55-year history.
We celebrated another record with the sale of our 500 millionth
KFC Snacker®
,proving customers still can’tget enough of our tasty
99¢ sandwich. And our KFC Famous Bowls™continue to be a favorite
for customers who lovegetting all their favorites layered together in
one place.
With an exciting new ad campaign combined with innovative products
and processes launching in 2008, we are set up for accelerated growth
next year and beyond. That meanseven more finger lickin’ good years
to come!
Gregg Dedrick
President and
Chief Concept Officer
KFC
Since 1969, Long John Silver’shas been
bringing families together with our deli-
cious, signature battered fish, chicken and
shrimp. As theleader of theQuick-Service
Restaurant Seafood category,weare satisfying customers
with our traditional seafood items and new products like our
mouth-watering Buttered Lobster Bites. We are continuing
to transform the fast food experience with our Special
Catch line of non-fried seafood products including Wild
Alaskan Salmon, Grilled Tilapia, and Flame Grilled Shrimp.
When you visit Long John Silver’syou’ll see what revolu-
tionaryQSR service is all about and why customers leave
ringing the bell!
At A&W All American Food, we have been
serving hometown favoritesfor nearly 90
years. With real jukebox music and a
frosty mug of oursignature A&W Root Beer Floats, our
customerslove the nostalgia. In 2007,wecelebrated the
fact that our burgers are theonly burgers in the industry
made with 100% U.S. Beef. The nation was called to action
to join the“Moove to American” campaign in support of
100% U.S. Beef. Other A&W “hometown” favorites include
the Papa burger,Coney dog and our Sweets & Treats
dessert menu, so c’mon in and have some hometown fun!
Ben Butler
President
LJS/A&W All American Food
significant of which was our conversion to zero grams trans fat cooking
oil for all fried products. The switch was welcome news to custom-
ers who love our world famous taste,but were concerned about
trans fat. This cemented our position as aleader in the QSRindustry.
Transformational? You bet!