Wherever in the world you are, you'll find there's a CUSTOMER - Yum!
Wherever in the world you are, you'll find there's a CUSTOMER - Yum!
Wherever in the world you are, you'll find there's a CUSTOMER - Yum!
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HERE WE GROW AGAIN<br />
TRICON RESTAURANTS INTERNATIONAL From<br />
Hong Kong to Malaysia, a Customer Mania revolution is<br />
tak<strong>in</strong>g hold — driv<strong>in</strong>g customer loyalty and differentiat<strong>in</strong>g<br />
<strong>the</strong> brands through 100% CHAMPS with a YES! And<br />
<strong>the</strong>re’s one th<strong>in</strong>g for certa<strong>in</strong> — this maniacal focus on <strong>the</strong><br />
customer is driv<strong>in</strong>g global growth — growth <strong>in</strong> sales,<br />
growth <strong>in</strong> profits and growth <strong>in</strong> new units. We’re certa<strong>in</strong><br />
that’s <strong>the</strong> same word we’ll be us<strong>in</strong>g to describe our <strong>in</strong>ternational<br />
bus<strong>in</strong>ess from here on out, s<strong>in</strong>ce expand<strong>in</strong>g our<br />
global bus<strong>in</strong>ess is one of Tricon’s key growth strategies.<br />
In 2001, system sales grew 9 percent and<br />
ongo<strong>in</strong>g operat<strong>in</strong>g profit rose 12 percent on a<br />
comparable 52-week basis, exclud<strong>in</strong>g foreign<br />
currency conversion. Most notably, we achieved<br />
significant local currency ongo<strong>in</strong>g operat<strong>in</strong>g<br />
profit growth <strong>in</strong> key bus<strong>in</strong>esses, <strong>in</strong>clud<strong>in</strong>g<br />
Greater Ch<strong>in</strong>a (up 39 percent), <strong>the</strong><br />
United K<strong>in</strong>gdom (up 33 percent),<br />
Korea (up 20 percent) and our Asia<br />
franchise bus<strong>in</strong>esses (up 32%). We<br />
also grew our <strong>in</strong>ternational presence by<br />
add<strong>in</strong>g more than 1,000 new units<br />
globally, mostly with our franchisees. That’s<br />
almost three new restaurants open<strong>in</strong>g somewhere<br />
outside of <strong>the</strong> U.S. every day of <strong>the</strong> year — mark<strong>in</strong>g our<br />
second year <strong>in</strong> a row of record new store open<strong>in</strong>gs.<br />
In fact, <strong>in</strong> Ch<strong>in</strong>a, our fastest grow<strong>in</strong>g and most<br />
profitable country outside <strong>the</strong> U.S., we opened our<br />
500th KFC and 60th Pizza Hut restaurant <strong>in</strong> 2001. Our<br />
Ch<strong>in</strong>a bus<strong>in</strong>ess volumes and marg<strong>in</strong>s cont<strong>in</strong>ue to be off<br />
<strong>the</strong> charts, and KFC has been rated <strong>the</strong> number one<br />
brand <strong>in</strong> <strong>the</strong> entire country! In 2001, between KFC and<br />
15<br />
International System<br />
Sales by Brand<br />
KFC 65%<br />
Pizza Hut 33%<br />
Taco Bell 2%<br />
SOURCE: CREST<br />
CREST employed new track<strong>in</strong>g<br />
methodology <strong>in</strong> 2001, <strong>the</strong>refore<br />
percentages <strong>are</strong> not comparable to<br />
prior years’ results.<br />
Pizza Hut, we built almost 100 new units <strong>in</strong> <strong>the</strong> UK and<br />
over 80 new units <strong>in</strong> Korea, where we have <strong>the</strong> best<br />
Pizza Hut bus<strong>in</strong>ess <strong>in</strong> <strong>the</strong> <strong>world</strong>.<br />
We also had big w<strong>in</strong>s with new product launches<br />
last year, such as <strong>the</strong> Tempura Twister <strong>in</strong> Japan, and<br />
Satay Twister <strong>in</strong> Australia. New promotions, such as<br />
<strong>the</strong> “Hot & On Time or<br />
It’s Free” guarantees <strong>in</strong><br />
Australia and Korea,<br />
and <strong>the</strong> <strong>in</strong>troduction<br />
of <strong>the</strong> Colonel’s famous<br />
KFC bucket <strong>in</strong> Ch<strong>in</strong>a<br />
have added to our<br />
revenue growth.<br />
There’s no doubt<br />
— our team’s focus on<br />
Customer Mania is <strong>the</strong><br />
fuel that has made this<br />
growth possible. We’ve<br />
Pete Bassi<br />
launched <strong>the</strong> rollout of<br />
President<br />
our quarterly Customer Mania tra<strong>in</strong><strong>in</strong>g <strong>in</strong> all of our key<br />
markets. It’s our commitment to build an operat<strong>in</strong>g<br />
culture based on 100% CHAMPS with a YES! attitude<br />
and a system that earns customer smiles with more<br />
value, improved service and better facilities.<br />
We’ve seen four straight years of growth <strong>in</strong> local<br />
currency system sales, profit and development. With <strong>the</strong><br />
breadth and depth of our leadership, a great relationship<br />
with our franchisees, plans for more than 1,000 new<br />
unit open<strong>in</strong>gs <strong>in</strong> 2002, and customer satisfaction<br />
foremost on our m<strong>in</strong>ds, we’re confident TRI is headed<br />
for much more growth and success <strong>in</strong> <strong>the</strong> future.