Pizza Hut 2014 Annual Report Download - page 5

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We’ve learned from other setbacks that we must
innovate our way out, and that’s what we’re doing at
KFC China. Our successful menu revamp in the first half
of 2014 reinforced the fact that our customers love food
innovation. We’re going to build on this success and launch
two menu revamps in 2015, introducing new products
across our menu—breakfast, lunch, dinner and beverages.
And as always, we’ll continue to oer compelling value. In
December, we also started our initial rollout of premium
coee in Shanghai KFC restaurants. The initial results are
encouraging and our freshly ground coee has contributed
solidly to our breakfast and afternoon day parts.
Finally, digital customer engagement and mobile ordering
innovation will be central to KFC’s sales recovery in China.
We are applying our know-how across Yum! to elevate
KFC’s digital oerings. I am excited by the opportunities
we have to further enhance how we connect with our
customers through these platforms.
PIZZA HUT CHINA
Pizza Hut Casual Dining is recovering more quickly, as
it was not as severely impacted by the supplier event
as KFC. With 1,300 restaurants in 350 cities, we are the
number one western casual dining chain in China, with
a lead around 6:1 over our nearest competitor. We oer
an extensive menu across many categories and five-star
service at a three-star price. This translates to extreme
value for our customers and an experience they cannot
get anywhere else in China. In 2015, we intend to grow
same-store sales through constant innovation of our
core oerings while we grow our breakfast and late
night business.
Pizza Hut Home Service now has 250 restaurants in 35
cities and is the only “All Meal” replacement delivery brand
in China. Forty percent of our menu consists of Chinese
food. So not only are we delivering pizza, we’re also
delivering a full array of Chinese menu options.
6:1
Lead Over Nearest
Casual Dining
Competitor
Pizza Hut Casual
Dining has
1,300
Units in
350 Cities
3