Pizza Hut 2011 Annual Report Download - page 7
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Our KFC a.m. breakfast is now in
over 600 stores.
Our restaurants in France have
the highest volumes in our system.
I want to emphasize it takes time and more patience than we’d like to have to build these
incremental sales layers and dayparts. Nevertheless, we are absolutely committed to
their success and have a firm conviction that it will be done.
Further proof is one not-so-well-known aspect about Yum!, it’s the
solid progress we’re making in France and Germany. Believe it or not,
our restaurants in France have the highest average unit volumes in our
system. As a result, we continue to build our scale and increase television
advertising. France is also the first market where we experimented with
a franchise business rental program to drive new unit development
and returns. And we’ve taken this approach to Germany, where we’re
expecting to have the necessary scale to utilize television advertising in
2013. We had 133 KFCs in France and 76 in Germany at the end of 2011.
Our challenge going forward is to secure great sites as fast as our people
capability allows. So while France and Germany are certainly developed
countries, they are clearly emerging businesses for Yum! Brands. To put the
opportunity in perspective, we make less than $30 million with only 209
restaurants in these two countries while our primary competitors make
well over one billion dollars with over 2,000 restaurants, so the best is yet
to come for us in Western Continental Europe.
In addition to our vast new unit development opportunities in emerging
markets, we have tremendous potential with 37,000+ restaurants
we already have in our portfolio. We’ve been very successful in China
leveraging our assets throughout the day with breakfast, 24-hour service,
delivery and innovative beverages. We’re making progress in several other
countries as well. In Yum! Restaurants International, we have over 4,000
KFC restaurants with ovens, which enable innovative non-fried products,
and 3,900 KFC restaurants serving our Krushers line of frozen beverages.
Our KFC a.m. breakfast is now in over 600 stores.
5