Pizza Hut 2015 Annual Report Download - page 5

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05
PIZZA HUT CASUAL DINING CHINA
Pizza Hut Casual Dining, which represents about
25% of China’s operating profit, is the Western Casual
Dining category leader with nearly 1,600 restaurants in
over 400 cities. This is a lead of around 6:1 over our nearest
Western Casual Dining competitor. In 2015 system sales
in constant currency grew 10% as we added 259 net-new
units, but same-store sales declined 5%. The macroeconomic
environment and volatile stock market impacted the casual
dining segment and we know we must generate more exciting
news and value to counter this headwind. We’ll be more
focused on value going forward with workday lunch specials
and value pizzas – as well as other initiatives to drive traffic.
We have our work cut out for us here, but the China team has a
number of strategies and concepts in test that we expect to improve
results. We know there
is substantial runway for
new units and same-store
sales growth for China’s
leading Western Casual
Dining brand.
259 NET-NEW PIZZA HUT CASUAL
DINING UNITS IN 2015
6:1
RESTAURANT COUNT OVER NEAREST
WESTERN CASUAL DINING COMPETITOR
PIZZA HUT CASUAL
DINING’S LEAD IN