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Brands…

Brands…. a nd the restaurant/fast food industry. Curtis Vercruysse. Retail Food (Restaurant) Industry. Made up of: supermarkets, convenience stores, snack bars, coffee shops, delicatessens, and restaurants (including “fast food”) Affected by changes in:

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Brands…

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  1. Brands… andthe restaurant/fast food industry Curtis Vercruysse

  2. Retail Food (Restaurant) Industry Made up of: supermarkets, convenience stores, snack bars, coffee shops, delicatessens, and restaurants (including “fast food”) Affected by changes in: tastes, economic conditions, demographic trends, traffic patterns, and disposable purchasing power

  3. Industry Numbers • Restaurant industry generated ~$1.75 T in 2013 • Fast food industry to generate $240 B in 2014 • QSRs represent 71% of overall market value within the fast-food industry • Low profit margins, but high volume

  4. Sources of Competition • Quality • Price • Service • Convenience • Location • Menu • Advertising • Promotions • Customers • Personnel • Real estate • Franchisees

  5. Company Snapshot: • Over 40,000 restaurants-KFC, Pizza Hut, and Taco Bell • World leaders of chicken, pizza, and Mexican style food categories • Four Divisions: U.S., China, International, India • Over 70% of profits from outside U.S. • Restaurants are 20% company owned, 75% franchisee owned, and 5% licensee owned

  6. Geographic Breakdown • As of year-end 2012:

  7. Brand Breakdown • KFC is number one brand in all of China • KFC market share: 38% • Pizza Hut is largest restaurant chain in the world • Pizza Hut US market share: 16% • Taco Bell US market share: 49%

  8. Strategies Moving Forward • Build leading brands in China in every category • Aggressive international expansion, building strong brands everywhere • Improve US positions, consistency, and returns • Drive industry leading shareholder value

  9. YUM! SWOT

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