4613 Redesign Pg 16-Pg 23/R3 3/22/01 5:42 PM Page 16
Mother’s Day is traditionally the busiest day
of the year for KFC restaurants. That
day last year, KFC RGM Olimpia Rosas knew
almost half the entire town of Berwyn, Ill.
would be showing up at her KFC restaurant
for a chicken dinner. So Olimpia arrived
extra early to fire up the cookers and get
a jump on the day. That’s typical Olimpia,
pictured here with some of her biggest
fans, her customers! She’s maniacal about
making sure they aren’t disappointed. For
Olimpia, taking care of customers and her
team is an uplifting experience.
Carried away by
4613 Redesign Pg 16-Pg 23/R3 3/22/01 5:43 PM Page 17
customers
4613 Redesign Pg 16-Pg 23/R2 3/21/01 10:48 PM Page 18
KFC
Chicken QSR Sales
“Since building a
foundation for our chicken
sandwiches in the fourth quarter
of 1999 – when we grew the
category more than any other
KFC 53%
Popeye’s 9%
Church’s 6%
Regional’s 4%
Independents 28%
chain – we’ve since doubled our
1999 sandwich share and are now
aggressively competing for more.
“We’ve positioned ourselves
with a delicious line of freshly made sandwiches,
including Original Recipe, Tender Roast, Triple
Crunch, Triple Crunch Zinger and Honey BBQ.
And last fall, we extended this sandwich line with
the Twister – a unique, zesty, hot-wrap sensation
KFC has strategically invested in
consumer learning
and product development to ensure
we have top-quality,
consumer-preferred
products across
our menu.
that’s proving it can keep customers coming back.
20% of KFC system
restaurants had a
brighter, slicker look
in 2000, and more
upgraded units are
on the way in 2001.
“We are optimistic about KFC because we have a much stronger
and balanced calendar featuring sandwiches, chicken-on-the-bone,
strips and wings news throughout the year. We also have an incremental half percent of national advertising, or 11 extra weeks on-air,
to promote the variety of our menu.
“With a new leadership team in place, we’ve set our sights on two
primary goals: operational excellence and brand differentiation. We’ve
intensified our focus on superior CHAMPS performance; a targeted
new advertising campaign to draw in a whole new
Cheryl Bachelder
President and
Chief Concept Officer
Mark Cosby
Chief Operating Officer
18
T R I C O N G L O BA L R E S TAU R A N T S
4613 Redesign Pg 16-Pg 23/R3 3/22/01 10:07 PM Page 19
generation of chicken lovers; accelerated unit development; and
other initiatives, such as multibranding, designed to fuel sales
and increase shareholder value in our brand.
“By the end of 2000, 13% of all U.S. KFC restaurants were
multibrand units, either partnered with Pizza Hut or Taco Bell,
or both. And under an exciting new arrangement with A&W
Restaurants, Inc., we opened several KFC/A&W units and plan
to build 300 more by 2005.
“New leadership, new strategies, a renewed commitment to
driving sales – we’re doing whatever it takes to ensure
that KFC remains the world’s #1 choice for chicken
for many years
to come!”
With 53% of the
chicken QSR market,
KFC has a more
balanced marketing
approach for 2001.
Our franchise partners voted with us
to add a half percent contribution
to national media
spending in 2001.
4613 Redesign Pg 16-Pg 23/R3 3/22/01 5:49 PM Page 20
You can hear the
4613 Redesign Pg 16-Pg 23/R3 3/22/01 5:51 PM Page 21
Team member Jeff Shine brightens the day of
each customer who comes by his drive-thru
window with his large smile, great attitude
and outstanding service. This Customer
Maniac often gives his customers an experience to remember – whether rhyming their
orders or asking them to “Have an exhilarating afternoon, now.” His enthusiasm and
creativity keep them coming back for more.
Jeff can be found practicing his own special
brand of customer mania at a Taco Bell in
Huntsville, Ala.
smile in his voice
4613 Redesign Pg 16-Pg 23/R3 3/22/01 5:55 PM Page 22
Taco Bell is aggressively developing a
pipeline of products
that will broaden
our appeal and
improve our ingredient quality. We’ve
already scored key
customer wins with
our new mouthwatering gooey Cheesy
Gordita Crunch.
Taco Bell
“We’ve had a challenging year at Taco Bell –
no doubt about it. Same store sales declined 5% for the year – and
that is completely unacceptable. But we’re moving quickly to regain
strength. We have a new management team in place, and we’re taking
a disciplined approach to turn Taco Bell around, once and for all.
“Our Taco Bell team is focused on a ‘one-two’ punch of
improved operations and improved marketing. On the operations
front, our goal is to improve cleanliness and speed of service. We
have launched a Clean Sweep program to drive
home the importance of executing our
clean checklist every day.
“To improve our speed
of service, we’re simplifying the ordering
process at the
The Cheesy
Gordita Crunch is a
crunchy taco wrapped
in gordita flatbread
and a melted blend
of three cheeses –
all spiked with zesty
Pepper Jack Sauce.
22
T R I C O N G L O BA L R E S TAU R A N T S
4613 Redesign Pg 16-Pg 23/R2 3/21/01 11:08 PM Page 23
drive-thru. We’ve also provided
Mexican QSR Sales
additional coaching and support to our Restaurant General
Managers so they will have the
tools, resources and enhanced
Taco Bell 72%
capabilities to improve restau-
Del Taco 3%
rant operations. These initiatives
Taco Bueno 2%
are taking hold, and we should
Taco John’s 3%
Taco Time 1%
Independents 19%
see positive results in 2001.
Taco Bell continues
to drive customer
mania deep by giving
our people the training programs and
tools they need to
differentiate the
brand and keep our
customers coming
back for more.
“On the marketing front, we have taken
steps to immediately strengthen our calendar,
enhance our product quality and drive value.
We are looking for ways to evolve and dimensionalize our industry-leading value proposition.
“Longer term, the big strategic push is for
Taco Bell to broaden our reach, maintaining our stronghold with
core heavy users and attracting new customers as the leading variety
option. As the market leader with 72% share, we need to expand our
user base. Our Taco Bell team is working on a new positioning and
advertising approach that will be launched in the latter part of 2001.
“So while it’s been a difficult year, we’re making progress. We
now have the strategies, the focus and the people in place to deliver
the kind of performance results you’d expect from Taco Bell.
We’re confident we’ll soon be back on track.”
Emil J. Brolick
President and
Chief Concept Officer
Bob Nilsen
Chief Operating Officer
Taco Bell’s L-Series
incorporates the
very latest in engineering technology
and design – reducing labor, improving
food quality and
ensuring customer
satisfaction!
4613 Pg 24-25 Facts/R5 3/22/01 6:00 PM Page 24
Tricon Facts
Worldwide System Units
Worldwide Units
Year-end 1996-2000
In thousands, year-end 2000
30
29
15
11
7
7
6
5-year
growth(a)
2000
1999
1998
1997
1996
KFC
Pizza Hut
Taco Bell
5,364
5,231
5,105
5,092
5,078
1%
7,927
8,084
8,412
8,640
8,696
(2)%
6,746
6,879
6,852
6,741
6,642
2%
Total U.S.
20,037
20,194
20,369
20,473
20,416
–
KFC
Pizza Hut
Taco Bell
5,974
5,595
5,318
5,145
4,783
6%
4,157
3,961
3,873
3,894
3,694
4%
249
232
203
200
203
5%
Total International
10,380
9,788
9,394
9,239
8,680
5%
Total
30,417
29,982
29,763
29,712
29,096
2%
Unconsolidated
Affiliates Franchised
Licensed
Total
Dairy Queen
Wendy’s
Domino’s Pizza
Subway
Burger King
Tricon
McDonald’s
(a) Compound annual growth rate
Breakdown of Worldwide System Units
Year-end 2000
Company
United States
KFC
Pizza Hut
Taco Bell
1,339
–
3,978
47
5,364
1,801
–
4,888
1,238
7,927
1,162
–
3,996
1,588
6,746
Total U.S.
4,302
–
12,862
2,873
20,037
KFC
Pizza Hut
Taco Bell
1,109
1,022
3,790
53
5,974
668
819
2,466
204
4,157
44
3
169
33
249
Total International
1,821
1,844
6,425
290
10,380
Total
6,123
1,844
19,287
3,163
30,417
International
24
T R I C O N G L O BA L R E S TAU R A N T S