?Yum China beats earning expectations in its first report
?Yum China beats earning expectations in its first report

Yum China, the operator of fast-food giants KFC, Pizza Hut and Taco Bell in the country, beat earnings expectations in its first report since spinning off from its US parent.

The firm said operating profit for 2016 hit USD640 billion in China, up 31 percent from 2015 when it was a unit of Yum Brands.

The growth came as Yum added 575 new restaurants over the year -- with more than half coming in the final three months -- bringing its total in the country to more than 7,500.

Micky Pant, CEO, said, "We believe the majority of our restaurants in China are yet to be built. Right now, our top priority is consistently delivering positive same-store sales growth."

Same-store sales expanded three percent at KFC but Pizza Hut's performance fell seven percent, it added.

Nevertheless "this was a momentous year for Yum China," Pant said, adding that the new independent firm has enhanced its leading position in the Chinese market.

After three decades in the country, Yum Brands in October split its USD6.9 billion operations as the fast-food industry faces sluggish sales growth with consumers increasingly turning to up market dining options.

The company's China business was also hammered by a tainted meat scandal in mid-2014.

Three months after the spin-off move, Yum China opened China's first Taco Bell, in Shanghai with a menu adapted to local tastes.

 
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Burman Hospitality to invest $100 Mn to expand Taco Bell in India; targets 600 stores
Burman Hospitality to invest $100 Mn to expand Taco Bell in India; targets 600 stores
 

One of the world’s most famous Mexican-inspired restaurant, Taco Bell, is celebrating its 100th restaurant milestone in India.

The brand has ambitious growth plans for the country and aims to open 600 restaurants in India over the next few years. 

India has become the fastest-growing market for Taco Bell International and amongst the largest market outside of US, where the first Taco Bell opened in 1962.

“We are delighted to celebrate the milestone 100th Taco Bell opening in India with our incredibly loyal fans. We are truly grateful for their passion, and endeavor to bring our distinctive Taco Bell experience to more fans across the country. Fueled by our loyal and growing customer base, we are on an exciting journey to open 600 restaurants in India in the medium term,” shared Ankush Tuli, Managing Director, Taco Bell APAC.

Celebrating this milestone, Taco Bell is bringing an exclusive 3-day offer starting from 31st August to 2nd September across all its 100 restaurants in India. For the limited time price of just INR 100, customers can enjoy their choice of special menu offerings including Tacos, Burritos, Chalupas, Nachos, and many more from the A la Carte Menu as well as the specialty sides menu.

The offer will be available on dine-in, takeaway and delivery channels including Taco Bell’s own app.

Taco Bell will be celebrating its 100-restaurant milestone with its top fans across 19 cities in India and few lucky consumers will also get a chance to receive exclusive brand merchandise.

I am humbled and grateful to our loyal fans and customers that have supported the Taco Bell brand in India. I am also extremely grateful to the whole team at Burman Hospitality and our partners at Taco Bell International who have, through their hard work allowed us to reach the milestone 100th store. We promise our customers that we will continue to offer the unique, innovative, and craveable menu offerings that our fans have embraced. We are currently opening a new store every 80 hours and working hard to get to our next milestone of 600 stores in India,” added Gaurav Burman, Director, Burman Hospitality Private Limited, Taco Bell’s franchisee partner.

As a part of their accelerated growth strategy, Taco Bell is now present across 19 cities and continues to expand their presence across Indian cities including Lucknow, Guwahati, Surat, Vadodara, and Ahmedabad amongst other markets.

 

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Taco Bell partners with Milk Bar to launch Strawberry Bell Truffles
Taco Bell partners with Milk Bar to launch Strawberry Bell Truffles
 

Taco Bell’s iconic Crunchy Taco shell and New York-based dessert company Milk Bar’s famous truffles are fusing together to form the all-new Strawberry Bell Truffle.

Bringing both brands together with familiar-yet-unexpected treats, the summer-friendly dessert aims to bring the best of both brands’ innovations to life.

In a first-of-its-kind collaboration for the brands, the truffle will be testing at Taco Bell and Milk Bar outposts in two major markets.

“A collab with our brilliant friends at Taco Bell has been on my bucket list for some time,” said Christina Tosi, Chef and Founder of Milk Bar.

The sweet and salty treat will be available in-stores as a two truffle package for $2.99 beginning August 3 until August 16, or until supplies last, at one Taco Bell restaurant in Orange County, CA (14042 Red Hill Ave., Tustin, CA 92780) and at two of Milk Bar’s flagship locations in the Nomad neighborhood of New York, NY (1196 Broadway at 29th Street, New York, NY 10001) and on Melrose in Los Angeles, CA (7150 Melrose Avenue, Los Angeles, CA 90046).

“The Strawberry Bell Truffle is the first mashup of its kind to be served to consumers on a large, test scale from our brands. This one-of-a-kind truffle is the friendship-fueled fruition of a concept made possible by a mutual dedication to innovation,” said Rene Pisciotti, Executive Chef at Taco Bell Corp.

The strawberry and corn flavor combination has been a years-long concept in the works for the culinary teams, as past collaborations at closed door celebrations sparked the desire to share these same test kitchen creations for fans on a wider scale.

 

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Taco Bell partners with NBA for Flamin' Hot comeback menu
Taco Bell partners with NBA for Flamin' Hot comeback menu
 

Everybody is rooting for a comeback these days, and Taco Bell is taking it to the next level during this year's NBA Finals, presented by YouTube TV, introducing a revamped version of their previous 'Steal a Game, Steal a Taco.'

This year's NBA Finals not only grant fans the opportunity to score a free taco*, but marks the highly anticipated return of the Flamin' Hot Doritos® Locos Tacos for a limited time, which was a crowd favorite following its initial introduction on menus in April 2020.

"We're thrilled to reignite our partnership with the league and spice up the NBA Finals even more by giving fans the chance to score a free taco regardless of which jersey they're wearing," said Nikki Lawson, Chief Global Brand Officer, Taco Bell by adding that the power of comebacks resonates more than ever, not only because we are turning the heat up in our kitchen to bring back the fan favorite Flamin' Hot Doritos Locos Tacos, but consumers are now able to enjoy this year's NBA Finals even more whether they're at home, in the arena or elsewhere.

This marks the first year for the 'NBA Comebacks' promotion as Taco Bell parts from its well-known 'Steal A Game, Steal A Taco' promotion, which first launched in 2016 when a road game was won in Game 3 of the NBA finals, winning everyone a free Doritos® Locos Tacos and tipping off a taco tradition for years to come.

"Through creating NBA Comebacks, Taco Bell is once again putting fans first and giving them even more reasons to tune in and follow the end of this historic season," said Lauren Sullivan, VP, Global Partnerships, NBA.

The 2021 NBA Finals start in July and could run as late as Game 7 on July 22. The first time an NBA Finals team is losing at halftime but comes back to win the game will score a free Flamin' Hot Doritos® Locos Tacos for Taco Bell customers across America. The Redemption Day details and official menu launch of the Flamin' Hot Doritos Locos Tacos will be shared at a later date following an NBA comeback.

 

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KFC to hire 20,000 employees at its restaurants, franchisee restaurant in the US
KFC to hire 20,000 employees at its restaurants, franchisee restaurant in the US
 

With customers choosing comfort and convenience of drive-thru, carry-out, and delivery, Kentucky Fried Chicken® announced strong Q1 earnings results last week.

Now, as demand continues to grow, the fried chicken chain hopes to hire 20,000 permanent full-time and part-time company and franchisee restaurant positions across the nation.

"KFC has seen tremendous growth and sustained demand in the U.S. over the last year.  Our franchisees have a real need to fill a variety of positions on their teams," said John Kurnick, Chief People Officer, KFC U.S.

Also Read: KFC to increase women workforce by 2X by 2024, to employ 5000 women employees

KFC's strong earnings announcement highlighted 14 percent growth in Q1 and same-store sales growth of 11 percent on a two-year basis, highlighting the need to fill 20,000 permanent positions nationwide.

The open positions will vary by restaurant but will include positions at all levels including hourly team members (cooks, prep and customer service), shift leaders, assistant managers and restaurant general managers.

"Many of our franchise owners and brand leaders started their careers working in our restaurants, and restaurant jobs have always presented unique opportunities for those looking to learn new skills, whether in management, in the kitchen, through customer service or beyond,” he added.

 

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Amid coronavirus, KFC & Pizza Hut start contactless delivery service in China
Amid coronavirus, KFC & Pizza Hut start contactless delivery service in China
 

KFC and Pizza Hut have introduced a contactless delivery service in China in order to reduce the risk of person-to-person transmission of the deadly Wuhan-based coronavirus that continues to spread throughout the country. 

While placing an order online, customers can select the “contactless delivery” option and couriers will call to set a delivery location. Couriers will be waiting until the customer shows up before they take the food out of its carrying case and put it on the delivery location agreed on by both parties in advance.

Then, couriers will step back and watch from a distance of at least 10 feet as the customer picks up the food and leaves. Couriers are required to wear masks and disinfect their hands and delivery boxes following each delivery. 

Parent company Yum China said in a statement, “The health and wellbeing of our employees and customers is our top priority and the innovative new services will help reduce the risk of person-to-person transmission of the coronavirus and protect our employees and customers.”

Amid coronavirus, KFC & Pizza Hut start contactless delivery service in China

Contactless in-store pickup service

KFC and Pizza Hut have also launched a contactless in-store pickup service at several locations. These stores have installed the pickup racks.

All orders, both in-store and takeout, will be having takeout packaging in a bid to avoid exposing the food to potential viruses in the air.  

According to the Centers for Disease Control and Prevention, person-to-person transmission of the deadly Wuhan-based coronavirus takes place during close contact, or within about 6 feet, when an infected person coughs or sneezes. This virus has killed at least 362 people and infected over 17,000 worldwide.

 

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Yum Promotes Pizza Hut India's Unnat Varma as MD, Asia-Pacific
Yum Promotes Pizza Hut India's Unnat Varma as MD, Asia-Pacific
 

Unnat Varma who was managing Pizza Hut business for India sub Continent has been promoted to MD, Asia-Pacific.

Varma as the managing director for the pizza chain’s Asia Pacific will be looking at operations of over 5,500 restaurants spread across 17 countries from next month.

“Value, convenience and reliability are fuelling growth, and we need to continue to make the brand relevant for different consumers. There are key learnings from India which we will take to other markets,” shared Varma.

Varma, who has been with US-based Yum Brands Inc’s Indian arm for over 12 years now, will operate out of its Asia Pacific headquarters in Singapore.

Pizza Hut’s India operation, which was earlier reporting to the US parent company, is being merged with the Asia outfit. While a part of Pizza Hut’s India operations including marketing, execution and store operations will be headed by current marketing chief Prashant Gaur, other functions such as business development, HR and finance, which are being integrated with the Asia operations, will continue to be overseen by Varma.

With 430 Pizza Hut restaurants and a potential consumer base of 1.5 million, India is the Kentucky-based pizza maker’s second largest market in the Asia Pacific region after China, which has over 2,000 outlets.

In India, all the Pizza Hut restaurants are franchised, and split up largely between RJ Corp-promoted Devyani International and Sapphire Foods India, a consortium of funds led by Samara Capital.

Pizza Hut reported 20% system sales growth in India for the third quarter ended September 30, 2018, which it said was its ninth consecutive quarter of positive growth, in response to healthier consumption trends within the eating-out sector. “Consumption in the overall food sector has grown, and pizzas are leading the pack as a category,” added Varma.

 

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Pizza Hut Marks India As Its Key Market For Growth
Pizza Hut Marks India As Its Key Market For Growth
 

Pizza Hut, a division of US-based Yum! Brands Inc, is betting big on India which has been identified by the fast food chain as one of the key markets for its future global growth.

The company, which opened its 9,000th restaurant outside the US in Mumbai, has already lined up plans to double its outlets in India to over 700 over the next five years.

Pizza Hut International President Milind Pant said “Pizza Hut is in 105 countries across the world and we choose India for celebrating this milestone because it is one of the key countries for accelerating the global growth. India now has five consecutive quarters of same store sales growth and it's on cusp of accelerating growth. It's always been a big potential market for us. Pizza Hut, which opens a new store every 18 hours, has a global network of 16,500 stores. The 9,000th store outside the US is operated by Sapphire Foods.

Presently, Yum! Brands has over 350 stores of Pizza Hut spread over 100 cities in India and are operated by its two franchise partners Devyani International and Sapphire Foods India.

Reiterating the potential in India, he said, "There is a huge potential if you take the number of Pizza Hut per million of urban population. Today we have one Pizza Hut for every million people in India. There are regions such as South East Asia where we have 10 Pizza Huts for every million people. The potential in India for Pizza Hut is riding on the consumer momentum, which we have tremendous. We are in 104 countries where Pizza Hut operates in. We are a 99 per cent franchise model. All our growth is delivered through our long standing franchise partners across the world.

Besides Pizza Hut, Yum! Brands Inc operates two other brands KFC and Taco Bell, and competes with Domino's Pizza and Dunkin' Donuts operated by Jubilant FoodWorks Ltd.

The newest Pizza Hut store in Mumbai shines a spotlight on the growth of the Pizza Hut Fast Casual Delivery Business in India and globally.

Unnat Varma, Managing Director, Pizza Hut(India Sub- Continent) said “Pizza Hut has grown stronger in India over the last 20 years, and we believe our digital-centric delivery and contemporary, open kitchen restaurants will build the next generation of pizza lovers to further reinforce Pizza Hut as the most loved and trusted food service brands in India”.

 

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KFC fined Rs 5 lakh for poor quality
KFC fined Rs 5 lakh for poor quality
 

A local court in UP has slapped a fine of Rs 5 lakh on global QSR KFC after ice cream and palm oil samples collected from one of its outlets in the city was found to be of sub-standard quality.

The court of Additional District Magistrate (ADM) City imposed the fine after the laboratory report of ice cream and palm oil samples were found to be of sub-standard.

The reports found both the items to be of sub- standard and below the stipulated quality control norms, officials said. A team of FDA officials, led by district food safety officer, had conducted surprise checks at a local KFC outlet in February last year.

The team collected samples of a particular brand of ice cream sold by the multinational brand, along with palm oil used for cooking.

Both the samples were sent for laboratory testing at state food laboratory. The report of the laboratory was received a few months ago. After receiving the report, the FDA filed a case under Food Safety and Standard Act 2006 in the court of ADM, City.

In their plea, KFC contended that they are not liable for the quality of the products as which were not manufactured in their unit and were instead bought from other firms.

"The onus of maintaining the quality of the above two items was solely on the company manufacturing them. KFC should not be held responsible for it," the KFC counsel argued in the court. However, after hearing both the sides, ADM, City, Alok Kumar imposed a fine of Rs 2.50 lakh on KFC for each of the product.

The court observed, "As per the existing provisions of law, the company on whose premises the sub-standard product is seized is held responsible for the quality of the said food item. Since the products were seized from the KFC outlet, it has to pay the fine of Rs 5 lakh for their poor quality."

 

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