Pizza Hut 2012 Annual Report Download - page 8

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innovative experiences with KFC, Pizza Hut Casual Dining, Pizza Hut Home
Service and Taco Bell. We will invest behind building each of these brands
in India and expect all of them to drive tremendous future growth. We are
on our way to making this business the next big growth engine for Yum!.
And there is no question we are in the right place at
the right time because India is forecasted to have the
largest consuming class in the world, ahead of the U.S.
and China by 2030.
For the past two years, Russia has had the highest same-store sales growth
out of our 20 business units around the world. System sales grew 46% in
2012 and we opened approximately 40 new restaurants. After buying the
Rostik’s business (Russia’s leading chicken chain) in 2010, we have now
converted nearly all these units to KFC. When you see the impact of our
new branding and the overwhelming customer response to KFC products,
we are confident Russia will be a sizable, profitable business for us for years
to come.
We are also making major progress in Africa, a continent with endless
possibilities where we clearly have first mover advantage. Africa has more
than 1 billion people and we currently have about 1,000 restaurants. We are
driving major growth building off our dominant base of about 700 KFCs in
South Africa, where we expect to add another 45 restaurants in 2013. By
the end of 2012, we expanded to 14 African countries, including the biggest
ones, Nigeria, Kenya and Zambia. In 2013, we intend to expand to Tanzania,
Uganda and Zimbabwe.
I’m also gratified to see our persistence paying off in France and Germany
where we have been working hard over the past decade to reach scale.
We now have about 150 KFCs in France and 100 KFCs in Germany. We
have only one restaurant for every ten McDonald’s in France and Germany.
We see closing that gap between our footprint and McDonald’s as a huge
opportunity. Our business in France again generated the highest unit
volumes of all the markets in our system around the world. In fact, the
average KFC in France generates $3.5 million a year, roughly three times
our global average. We have started extending this success to Germany
which now has enough brand presence to justify national televised
advertising for the first time. We are beginning to build a strong business
in Spain and intend to expand across Western Europe over the long term.
At the same time, we are very optimistic about the new unit opportunities
and sales growth we are seeing across Asia, the Middle East and Latin
America. In our top-performing countries, we are the market leader by a
wide margin appealing to an expanding consumer base in countries such
as Indonesia and Vietnam. With great operating capability and committed
franchisees investing in our brands for the long term, we are positioned to
deliver consistent returns in the years ahead.
949
New restaurants in YRI.
138
New restaurants in India.
By the end of 2012, we expanded
to 14 African countries.
Russia had the highest
same-store sales growth.
6