Pizza Hut Franchise - Essay Example

? PORTFOLIO NEGOTIATED LEARNING EXPERIENCE: PIZZA HUT IN THE UNITED KINGDOM 7/17 Your User Executive Summary This report studies Pizza Hut in the United Kingdom in its current and future strategic development. It focuses on identifying and enhancing its organizational policies, procedures, and working practices. This paper is organized according to the following themes: introduction, methodology, main body, summary, recommendations, statement of cost, savings, efficiencies, etc., reflections on the project, references, and appendices. By examining these key factors, the paper‘s purpose and outcome are to analyze the efficiency and/or effectiveness of Pizza Hut with a view to its enhancement. Introduction Pizza Hut began in 1958 when brothers, Frank and Dan Carney, established the first store in Wichita, Kansas. With room for only 25 seats, the first Pizza Hut restaurant was very small. For the origin of the name, Frank and Dan had a restaurant sign which only had space for nine letters, so they put ‘Pizza’ in the name, with the remaining space for 3 more letters. In addition, because the building resembled a hut, the name Pizza Hut was tagged. The first store in the United Kingdom opened fifteen years later. Now, the company has flourished to the extent that it is the largest pizza company in the world. As the dominant pizza and delivery chain in the UK, it has 697 outlets in the nation. It is part of Yum Restaurants International (who also owns KFC, Taco Bell, Long John Silver’s, A & W and Pizza Hut Worldwide). The datelines listed below indicate the development of Pizza Hut in the United Kingdom (UK): ‘”Here is a Quick Bite History for you: 2007 Thick ‘n’ thin, Pizza Hut’s ‘best of both’ offering is launched! 2006 Whitbread sells their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd is now 100% owned by Yum! Cheesy Bites is launched! 697 restaurants now in the UK! 154 stores are franchise owned by 61 franchisees. 2005 The 4forALL is launched - The biggest new product launch in the history of Pizza Hut. Over 600 restaurants now open in the UK. 70 of them are Franchise units 2004 Pizza Hut launch (sic) The Big New Yorker 2003 500 restaurants are now open throughout the UK, employing over 20,000 people. 2002 Tricon Global becomes YUM! Brands Inc. The Quad Pizza is launched in the UK. Pizza Hut opens its 500th restaurant. A & W and Long John Silver’s join the Yum brand. 2001 Pizza Hut begins a franchising programme with its delivery stores 2000 Pizza Hut introduces The Edge, a thin pizza with toppings all the way round the edge 1999 Pizza Hut has over 400 restaurants, employing 14000 people. The Italian Pizza is launched in the UK 1998 Pan Pizza is relaunched as Grand Pan in the UK 1997 PepsiCo decided to focus on their (sic) drinks business. As a result, Tricon Global Restaurants is born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. The Sicilian Pizza is launched in the UK. There are 277 restaurants and 100 delivery stores in the UK 1995 Stuffed Crust is launched in the UK 1994 10,000 Pizza Huts are open world-wide 1993 There are 300 restaurants and delivery stores in the UK 1992 There are 9000 restaurants in 84 countries 1990 Pizza Hut reaches Russia. In the UK there are now 200 restaurants 1989 The first restaurant is converted into a Restaurant Based Delivery store 1988 The UK’s first delivery unit opens in Kingsbury, London 1987 An average of one restaurant opened each week in the UK 1986 100 restaurants in the UK and 5000 world wide 1984 50 restaurants so far in the UK 1982 UK joint venture commences between PepsiCo and Whitbread 1980 Pan Pizza Introduced 1977 PepsiCo buys Pizza Hut 1973 Pizza Hut goes international with restaurants in Japan, Canada & England. The first UK Pizza Hut opens in Islington, London 1972 1000 restaurants are open throughout the USA 1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas.”’ (www.pizzahut.co.uk). As part of a consortium, Yum! Brands, Inc., Pizza Hut constitutes one of the most successful restaurant franchises in the world with its famous pizza, pasta and wing dishes. It is an international company with over 6,000 restaurants in the United States and in excess in 5,600 restaurants in 94 other nations and regions across the globe. Yum!, its parent company, constitutes the biggest restaurant company in the world in regards to its over 37,000 locations in 120 countries and regions and its over one million associates. Yum! Brands, Inc. is located three major parts: China, United States, and International. Because of its success in establishing new restaurants on a daily basis, it represents the greatest retail concern in the world. Pizza Hut ensures its customers’ satisfaction with its amazing and wonderful pizza choices, such as signature Veggie Lover's®, Thin 'N Crispy®, Tuscani Pastas, Meat Lover's®, and WingStreet® wings for over 50 years (www.pizzahutfranchise.com). Located in Louisville, Kentucky, Yum! Brands, Inc. enjoys a rank of #214 on the Fortune 500 List. Accumulating billions of dollars yearly, its prestigious brands – Pizza Hut, KFC, and Taco Bell – represent the world leaders in pizza, chicken, and Mexican-style food cuisine (www.yum.com). Methodology The topic is investigated in the following steps: planning, organizing, and scheduling the project. In regards to the planning, several hours every day was spent researching and writing the project. With respect to organizing, the data collected was placed in order of importance from most relevant to least applicable information. The organization of writing the portfolio served as the basis for the outline the project. Finally, in scheduling the project, it was done in the afternoons from 1: 00 p.m. to 5: 00 p.m. for three days. Main Body Current and Future Strategic Development of Pizza Hut In recent years, the economic downturn in the world has impacted the restaurant industry. Thus, quick and cheap service restaurants like Pizza Hut cater to the needs of pocket tight consumers by offering quality food with a wonderful dining experience. As a national and international brand name, Pizza Hut maintains its position as the leader in the pizza industry, providing great food at reasonable prices. Moreover, it offers new tactics to retain and enlarge on its market share among its customers. In addition, through effective advertising and marketing strategies, it maintains a reputation of brand recognition (www.pizzahutfranchise.com). At Yum! They have developed a growing international dominance by emphasizing four major business strategies: 1). promote industry-leading, long-term franchise and shareholder value; 2). design dominant brands in China of every major classification; 3). encourage forceful global development and establish powerful brands; 4). significantly enhance U.S. brands in returns, consistency, and positions. Its focuses on four principal strategies as pictured below: (www.yum.com) In addition, Yum maintains reliable figures of achievement in 2010 with 17% Earnings Per Share (EPS) growth. This commercial success underscores the fact that Yum has obtained at least a 13% percent growth for nine consecutive years, which surpassed its 10% EPS growth expectations. Moreover, for that year alone, it established almost 1,400 new restaurants on the international scene. Significantly, Yum has retained its Return on Investment Capital (ROIC) of 20%+ and still is the market leader in the industry. Its corporate culture promotes a diverse workforce in background and style (www.yum.com). For its first ten years, Yum! Brands has enjoyed phenomenal success, which it plans to continue to grow. It intends for long term growth, particularly in the global market, and seeks to realize at the minimum 10% Earnings Per Share in increase yearly. Yum! Brands international division will enter more markets in nations throughout the world (www.yum.com). Identify and Enhance the Organizational Policies of Pizza Hut Like all companies, Pizza Hut in the United Kingdom has organizational policies. In its passion and vision, it seeks to be the most admired and respected with its brand restaurants, great delivery units, excellent food, franchise networks, superlative service, and outstanding values to their customers. In addition, it seeks to be admired and respected by both their customers and employees. Their operational strategy comprises five elements: “1. Build people capability in order to 2. Provide come back again service with 3. A passion for product that will 4. Drive sales and 5. Maximise profit.” (www.pizzahut.co.uk). Some of the goals of Pizza Hut in the UK are to have a team member turnover rate of 50% by 2010, and to have 2.6 million satisfied customers weekly. Furthermore, they plan on weekly sales of ?600 million pounds with 800 plus Pizza Huts in the United Kingdom. Its values of positive energy, teamwork, customer mania, belief in people, coaching and support, recognition, accountability, and executive excellence have allowed it to accomplish its business objectives. In 2001, Pizza Hut (UK) established its franchising programme, which has served as the chief source for its expansion with its currently 154 franchised businesses (www.pizzahut.co.uk). (www.google.com) Procedures and Working Practices of Pizza Hut Pizza Hut maintains a commitment to provide legal, social, and ethical business services to the public. Through its parent company, Yum! Brands, Inc., it has developed a Supplier Code of Conduct for its different world wide branches to conform to ethical business operations and legal practices. In regards to compliance with laws and regulations, branches or suppliers must follow the relevant laws, codes, or regulations, such as local and centrals laws pertaining to wages, hours, benefits, safety, etc. Moreover, Yum requires that the suppliers adhere to their practices to the accepted standards in the market. For employment practices, working hours and conditions, suppliers must provide safety and healthy working conditions for their employees in adherence with relevant laws, codes, regulations and market standards with acceptable daily and weekly labour schedules. According to local and central laws, employees should only work the stipulated amount of hours for regular and overtime labour. Suppliers need to enact a non discrimination policy in compliance with local and central laws barring discrimination in employment based on sex, colour, age, creed, race, religion, national origin, physical disability, or any other factors that the law forbids. With respect to child labour, suppliers cannot use employees younger than 14 years, and workers under the legal age of labour for the kind of employment being done in any place that is a work site for Yum. Moreover, suppliers cannot use threats of violence, sexual, physical, psychological, and verbal harassment as a means of discipline or control nor use any type of indentured servitude to do work or produce goods for Yum in compliance with relevant law. As required by law, suppliers must develop company policies that implement the Code of standards and disseminate notices of them in all languages, so that their employees can understand. In regards to audits and inspections, every supplier must perform audits and inspections in adherence Yum’s Code, and relevant contractual and legal standards. Besides the contractual obligations of Yum and Unified Foodservice Purchasing Co-op, LLC (UFPC ), suppliers that failed to abide by the Code would face disciplinary action, such as termination of the contract. Moreover, to consolidate the relationships, Yum and UFPC expect for suppliers total adherence with its Code of conduct. The Code represents a summary of the suppliers’ obligations with respect to Yum, and is additional to their duties as stipulated in the agreements of Yum and UFPC. The agreement should prevail in any disputes over the Code and a relevant accord (www.pizzahut.com). (www.google.com) Organizational Efficiency and/or Effectiveness of Pizza Hut Different departments of marketing, property, operations, human resources and finance of Pizza Hut in UK work together to maintain its organizational efficiency and effectiveness. For its marketing department, its goals are to make money and simultaneously satisfy the appetites of its customers. Through its customer mania, Pizza Hut spends considerable money to investigate their customers to understand them and their needs. For its full service restaurants, its customers are families who celebrate special occasions while for its home delivery service, its consumers are teens and young adults who want convenience. Pizza Hut also engages in market research of its customers about brands, advertising, and experiences. Knowing the needs and wants of customers, the marketing team designs innovative products and creative promotions for them and to generate more profits and sales. Product innovation represents a major aspect of its achievement. The new product development team conduct studies of focus groups with customers to create new concepts for innovative products, which if proved successful, are changed into actual items to be tested and marketed. The retail marketing team generates interests producing the products, and hires marketing agencies to come up with imaginative concepts in advertising them. Pizza Hut has a team work approach in its executional excellence with its finance team that examines the costs of the products; the operations team that explores the feasibility of the products; and the human resources that team engages in training programmes in its stores (www.pizzahut.co.uk). Organizational efficiency and effectiveness are maintained in Pizza Hut through its property and operations department. The function of the property department deals with maintaining growth tactics. It includes revamping present restaurants to attract current and new customers. New restaurants should be located near a retail or leisure park that has excellent parking and safety facilities. It must attract a wide and good clientele from the region. New restaurants must be located in regions that have people at all times of the day. The driveway parkway should be of an appropriate size and driving time to the restaurants, which must be in an attractive location to ongoing traffic and park users. The park should serve as the principal recruitment for Pizza Hut restaurants. In addition, opportunities exist to construct a freestanding unit pertaining to the company’s design. The restaurants should be standard size according to the company’s accepted format. Pizza Hut should choose a 25-year lease for regular rent reviews with only pizza sales on the park (www.pizzahut.co.uk). The operations department functions as the image of Pizza Hut. Its duty focuses on excellent pizza quality and wonderful customer service. Pizza Hut maintains several important concepts, such as full service restaurants, home service restaurants, restaurant based delivery, express units, and franchise. With the latter, it started with 13 franchises in Ireland in 2001, which succeeded to such an extent that management decided to open up more franchises in mainland United Kingdom. In addition, it began its first home service franchise in Norwood close Croydon). Currently, more than 150 Franchise restaurants are located in mainland United Kingdom and Ireland. Pizza Hut welcomes franchise partners, and all applicants are reviewed thoroughly with a business planning meeting, an on-job experience and two interviews. Once accepted, the business development team begins to explore locations for the new restaurant of the applicants, who must go through 12 weeks of detailed in-store training. Pizza Hut restaurants abide and follow the CHAMPS standard of Cleanliness, Hospitality, Accuracy, Maintenance, Product, and Speed, which underscores the backbone of customer satisfaction. CHAMPS is the central feature of the operations excellence of Pizza Hut that ensures remuneration and acknowledgement for team members. The CHAMPScheck, employed for all Yum! Brands, serve as the standard to measure excellence in product and service quality in all Pizza Hut restaurants (www.pizzahut.co.uk). In its human resources department, Pizza Hut divides it into several functions. Its major goal is to encourage the general business with a genuine ‘Passion for People’. Its duties comprise the training & development team, which fosters and develop team members to excel via several programmes, for instance the expert training programme, and the developing champions training programme for the management personnel. Its fast track management development programmes and specific technical training also trains its management staff. The recruitment team is divided into two units that recruit for shopping and management positions in its restaurants and shopping centres. The compensation and benefits team ensures that all Pizza Hut (UK) employees have comprehensive and competitive benefits coverage, such as pension, bonus, health care, and fair pay. In addition, it devises human relations policies, information and procedures that abide to the nation’s laws and administers employment hiring. The human relations team provides human relations for managers and team members employees of Pizza Hut. It offers support via welfare advice, employee relations, manpower planning, district compensation and benefits, and the continued expansion of Customer Mania. The organisational development and communications team emphasizes organisational development, business communication, and change, and encourages and trains team members to excel in its restaurant support centres (www.pizzahut.co.uk). The finance department serves to sustain Pizza Hut’s business objectives. It divides its unit into three teams: planning, control, and supply chain management. The finance department is responsible for the production of accurate financial statements of Pizza Hut’s business performance. Moreover, it documents all of Pizza Hut’s transactions, and guards the company’s assets via applicable controls and processes. Its team in the finance department manages insurance, treasury, tax and estates management, and loss prevention. Furthermore, it prepares and reports accurate information to senior management, statutory bodies, and Yum. The finance department examines the differences from plan and forecasts to assist and impact decision-making, encourages the growth programmes of the franchising and business development teams, compensates distributors of drink, food, and services to the restaurants, and pays more than 18,500 employees on a weekly basis and 15,000 employees every month, adhering to relevant tax and statutory laws. Its tax department is equipped to handle tax obligations for Pizza Hut per government rules and regulations. The planning department ensures that Pizza Hut’s business performance has measurable targets, understandable aims, and consistent tracks. Planning comprises three teams that deal with business, sales and marketing, and capital. The business planning deals with the general business and individual unit budgeting process, and provides commercial analytical support for the operations. The sales & marketing planning make sure that marketing objectives are stringently assessed and corresponds to the company’s financial and strategic objectives. The capital planning stresses investment processes to determine their returns. The supply chain management gets the food and non-food items and transports the products from the suppliers to the restaurants. In particular, the supply chain strategy must ensure suppliers and their products, negotiate and manage contracts, maintain cost reduction and adhere to the company’s standards and management (www.pizzahut.co.uk). (www.google.com). Organizational Enhancement of Pizza Hut Yum’s objective is to maintain its position as the world’s leader in the restaurant business. Its secret of success is to ensure that its staff is professional, then it will have happy customers, and great profits:”people capability first…satisfied customers and profitability follow.” (www.yum.com). Most importantly, its staff is knowledgeable and enjoys working in the restaurant business. Restaurant general managers serve as the forefront leaders; the franchisees comprise Yum’s most valuable partners. Its Yum! Dynasty Growth Model and How We Win Together principles that highlight the methods that allow the company to obtain outstanding results and support their duty to its consumers, employees, and franchisees. Yum has a passion to put a “YUM” on the faces of customers all over the globe. It promotes Customer Mania, which means that restaurant teams must perform 100% CHAMPS with a yes in each restaurant encounter. Above this essential principle, restaurant operators should talk positively to customers, answers their demands, and ensure that they are pleased. Customer Mania also deals with all staff in restaurant support centres being devoted to assisting those who help customers by offering the best in service. In this way, the operators can become more efficient customer maniacs (www.yum.com). Yum’s culture and employees constitute its two principal strengths. It develops an atmosphere of communications, honesty, and caring by treating its employees with respect. Thus, it has several principles that it abides by to ensure it meets it goals in managing its business, organization enhancement: 1). Believe in All People: It means that Yum has confidence in the best intentions of people, and knows that they can make their contributions. Thus, it supports a diversity to improve its decision making, and encourages every person to grow. 2). Customer maniacs: It means customers are the bosses because they are the ones that patronize the Pizza Hut restaurants. It ensures excellent regional general managers, who develop outstanding teams with 100% CHAMPS and a Yes attitude. 3). Go for Breakthrough: The staff focuses on how they can achieve spectacular results in their work. Its thinking culture seeks expansion with an optimistic perspective and individual drive to realize the goal. 4). Build Know How: Yum encourages active learning that promotes the work within and without the company. By being able to prioritize regularly, the learning is implemented the most efficiently to realize breakthroughs creatively. 5). Take the Hill Teamwork: It uses teamwork to provide consistent outcomes and proactive decisions. The relationships allow people to do great things well and quickly. 6). Recognize! Recognize! Recognize!: Yum recruits and keeps the most talented staff due to its international reputation for excellence, which encourages greatness. It enjoys celebrating the accomplishments of others in an entertaining manner (www.yum.com). (www.yum.com) Summary In summary, this report examines Pizza Hut in the United Kingdom, looking at its current and future strategic development. It stresses locating and underscoring its organizational policies, procedures and working practices. In analyzing its principal components, the paper‘s purpose and outcome are to investigate the efficiency and/or effectiveness of Pizza Hut to stress how to improve it. Pizza Hut comprises part of Yum! Brands, Inc., the most successful restaurant company in the world. Obviously, it surpasses its goals by offering excellent cuisine and providing great customer service. In addition, Its Customer Mania and CHAMPS concepts make it the premier international restaurant company in the world. It keeps on making huge profits, exceeding its own predictions. Moreover, it has maintained at least a 13% percent growth rate for nine consecutive years, which exceeded its 10% Earnings Per Share expectations. By all objectives analyses, Pizza Hut performs on an excellent level, but even for companies that are at the leaders in the industry, there are always one or two things it can do things better. Recommendations Despite the excellent business performance of Pizza Hut, it still could benefit from some recommendations to improve its quality of service and product. First, it should stress offering better food and service. Second, it should emphasize great customer relations and staff development. Third, through its Customer Mania and CHAMPS signature concepts, it can improve their efficiency and effectiveness by focusing on them more, giving more prizes and rewards to their staff to ensure their optimum performance. Fourth, it should also stress its important corporate principles, such as believe in all people, customer mania, go for breakthrough, build know how, take the hill teamwork, and recognize, recognize, and recognize. By emphasizing these concepts and principles, it will solidify Pizza Hut’s position as the leader of the industry in the United Kingdom and the world. Statement of Costs, Savings, Efficiencies, Etc Yum! Brands Inc announced its results for the first quarter that ended March 19, 2011, including Earnings Per Share ( EPS) of $ 0.63 without special items. Taking in the special items loss of $0.09, its EPS was $ 0.54. It still expects at least a 10% growth for the year 2011. A robust China and emerging markets account for growth of Yum! Brands, Inc. for the first quarter. Its international operating profit rose by 5% with 18% from China and 8% from its world division, but declined by 13% in the United States. Its worldwide system sales increased by 5% with 24% in China and 6% in the international section, but remained stagnant in the United States. 223 restaurants were opened up with 92 new units in China alone. The same store sales rose by 13% in China and 2% in the international arena with a 1% decrease in the United States. Global restaurant margin inclined 0.6% percentage points to 17.6%. The repurchasing of shares came to $142 million for 2.9 million shares at normal cost of $ 49 per share. Global taxes rose to 27.1% from 25.7% (www.investors.yum.com). Yum! Brands Inc. declared in its second quarter of ending June 11, 2011 with Earnings Per Share of growth of 13% without special items. It had an EPS of $0.66 without special items. With the special items lost $0.01, it had an EPS of $ 0.65. Growing China and the emerging market performance caused the great growth of the company. Yum increased its full year earnings per share growth forecast to at least 12% without special items. The operating profit rose by 25% and 11% from its international division. In the United States, the operating profit declined by 28% in the United States, which contributed to an international operating profit decrease of 2%. Global operating profit and sales rose by 3% with 28% in China and 6% in the international market. The company experienced a 5% decrease in the United States. Impressive global opening of Yum’s 241 restaurants continued with 99 new ones in China. Same store sales increased 18% in China and 2% in the international market. Same store sales declined by 4% in the United States. Global restaurant margin decreased 0.6 % to 15.9%. The international tax rate before special items decreased to 16.7% from 23.6%. The repurchase of the company’s shares amounted to $ 166 million for 3.2 million shares at an average cost of $ 52 per share. To this period, the company’s share repurchases accrued to $ 308 million (www.investors.yum.com). Reflections on the Project This project has entailed doing critical reflection and analysis of the research of Pizza Hut in the United Kingdom. In the process undertaken, extensive research has been necessary to compile data for the project with using the Internet and Pizza Hut’s websites. Many data has been collected, but a process of examining what is relevant or not has been employed. In managing the project, the adopted practice has been using the outline provided for writing the portfolio with each topic being researched and written in the order it has been presented: executive summary, introduction, methodology, main body, summary, recommendations, statement of cost, savings, efficiencies, etc., reflections on the project, references, and appendices. The project has revealed the reasons why Pizza Hut is the dominant restaurant in the world with its various programs to enhance the quality of food and service. References 1). Pizza Hut Franchise (2011) About Us [Online]. Available from: http://www.pizzahutfranchise.com/about-best-pizza-franchise.php [Accessed 13 July 2011] 2). Pizza Hut Franchise (2011) Why Us [Online]. Available from: http://www.pizzahutfranchise.com/why-fast-food-franchises.php. [Accessed 13 July 2011] 3). Pizza Hut (2011) Pizza Hut Supplier Code of Conduct [Online]. Available from: http://www.pizzahut.com/suppliercode.html. [Accessed 13 July 2011] 4). Yum (2011) Yum! Brands [Online]. Available from: http://www.yum.com/company/ourbrands.asp. [Accessed 14 July 2011] 5). Pizza Hut (2011) Information Pack [Online]. Available from: http://www.pizzahut.co.uk/assets/redroof/files/Student_Pack.pdf. [Accessed 14 July 2011] 6). Yum (2011) Yum! Vision & Strategy [Online]. Available from: http://www.yum.com/investors/vision strategy.as. [Accessed 14 July 2011] 7). Yum (2011) Yum Code of Conduct [Online]. Available from: http://www.yum.com/investors/governance/media/gov conduct030408.pdf [Accessed 14 July 2011] 8). Investors (2011) News Earnings [Online]. Available from: http://www.investors.yum.com/phoeniz.zhtml?c=117941&p=irol.newsEarnings [Accessed 14 July 2011] 9). Investors (2011) Yum! Brands Inc. Announces Second Quarter 2011 EPS Growth of 13% [Online]. Available from: http://www.investors.yum.com/phoenix.zhtml?c=117941&p=irol.newsArticle&ID=1552929&highlight [Accessed 15 July 2011] 10). Investors (2011) Yum! Brands Inc. Announces First Quarter 2-11 EPS Growth [Online]. Available from: http://www.investors.yum.com/phoenix.zhtml?c=117941&p=irol.newsArticle&ID=1585057&highlight [Accessed 15 July 2011] 11). Google (2011) Pictures of Pizza Hut [Online]. Available from: .http://www.google.com/search?hl=en&source=hp&biw=&bih=&ie=ISO-8859-1&q=pictures+of+pizza+hut&btnG=Google+Search [Accessed 15 July 2011] Appendices The economic performance of Yum! Restaurant International and its Pizza Hut subsidiaries up until June 2011 second quarter: Appendix I Total YUM! Restaurants International Beginning of Year 1,559 - 12,722 14,281 New Builds 25 - 248 273 Acquisitions 10 - (10) - Refranchising (23) - 23 - Closures (18) - (145) (163) Other - - 2 2 End of Quarter 1,553 - 12,840 14,393 % of Total 11% - 89% 100% June 11, 2011 Appendix II YUM! Brands Inc. Restaurant Units Activity Summary Total Unconsolidated Excluding Company Affiliates Franchisees Licensees Pizza Hut Casual Dining Beginning of Year 520 - - 520 New Builds 30 - - 30 Acquisitions - - - - Refranchising - - - - Closures (6) - - (6) Other - - - - End of Quarter 544 - - 544 % of Total 100% - - 100% Appendix III Pizza Hut Home Service Beginning of Year 120 - - 120 New Builds 3 - - 3 Acquisitions - - - - Refranchising - - - - Closures (2) - - (2) Other - - - - End of Quarter 121 - - 121 % of Total 100% - - 100% Appendix IV Pizza Hut Express Beginning of Year 2 - - 2 New Builds - - - - Acquisitions - - - - Refranchising - - - - Closures - - - - Other - - - - End of Quarter 2 - - 2 % of Total 100% - - 100% Appendix V East Dawning Beginning of Year 20 - - 20 New Builds 1 - - 1 Acquisitions - - - - Refranchising - - - - Closures - - - - Other - - - - End of Quarter 21 - - 21 % of Total 100% - - 100% Appendix VI YUM! Brands Inc. Restaurant Units Activity Summary YUM! RESTAURANTS INTERNATIONAL YUM! Brands Inc. Restaurant Units Activity Summary June 11, 2011 Company Franchisees Total Pizza Hut Beginning of Year 459 5,547 6,006 New Builds 11 41 52 Acquisitions 4 (4) - Refranchising (4) 4 - Closures (3) (79) (82) Other - 1 1 End of Quarter 467 5,510 5,977 % of Total 8% 92% 100% YUM! Brands Inc. Restaurant Units Activity Summary June 11, 201 (http://investors.yum.com) (www.google.com) Read More