Multibranding - Yum!

1 + 1 = 3 Multibranding gives us the competitive
advantage of branded variety. We want to be the
best in the world at providing customers branded
restaurant choice and convenience.
er er” of
choice
Multibranding, combining one or
more brands in the same restaurant,
is the biggest innovation in the
Quick Service Restaurant industry
since the advent of the drive-thru
window. And our customers told us loud
and clear that we can break away from the
pack by offering two of our great brands in
the same restaurant.
Since opening our first multibrand restaurant in
1992, this successful concept has now grown to
more than 2,100 multibrand units in the U.S. today, or
12% of the system, accounting for almost 14% of our profits
with higher average unit volumes and higher cash flows than standalone
units. To show you how serious we are about this concept, we and
our franchisees plan to build, convert or rebuild another 500 restaurants in
2004 with the potential for over 10,000 stores in the years to come.
One reason for the strong growth potential is that this concept enables us to build in trade areas
that could not support just a single brand. And, when you add a new concept to an existing restaurant,
operators get increased sales from the new concepts while strengthening the base business too. That’s why our multibrand
company stores are generating between $1.2 to $1.3 million in average unit volumes. In 2003, multibranding was responsible
for $185 million in profit and fees and we expect to double that — to $400 million — by 2006. So as you can see, when we
give our customers more branded choice and convenience, they come back to the great taste of Yum! more often!
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