06- Yum! India - Yum... · PDF filePizza Hut India History;Started in 1996; ... Faced...

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Transcript of 06- Yum! India - Yum... · PDF filePizza Hut India History;Started in 1996; ... Faced...

  • Sandeep Kohli, Managing DirectorSandeep Kohli, Managing Director

    Yum! IndiaYum! India

  • 1.1 billion people, 1/6 of the worlds population, growing at 1.5% per year

    7%+ GDP growth expected in the future

    300 million middle class and growing

    Service sector creating huge number of young consumers

    400 malls under development, retail landscape changing

    India . . . Huge Potential Market for Yum!

    Source: Government agencies/Goldman Sachs

  • Largest, fastest growing Pan India restaurant company

    Fully resourced, local management team

    Highly educated workforce . . . 90%+ with college degrees

    Highly preferred employer

    Network of well-resourced, committed franchise partners

    Distribution and supply chain in place

    Yum! India . . . Strong Capability to Drive Expansion

  • Pizza Hut India History

    Started in 1996

    Two franchisees began development

    International brand with Indian heart products, service, assets

    Consistently voted as the most trusted food-service brand

  • Pizza Hut

    29

    2

    127

    96 97 98 99 00 01 02 03 04 05 F

    Where We Are Today

    8 franchisees

    Pizza Hut largest QSR brand in India, growing at 40%

    Wide brand appeal, pizzas starting at 50 rupees ($1.10)

    31 cities31 cities

    Total Restaurants

  • Established a National Presence

    Pune

    CochinCoimbatore

    Vizag

    Baroda

    Jodhpur

    Agra

    Amritsar

    Jalandhar

    Pondicherry

    Surat

    Ahmedabad

    Ludhiana

    Mathura

    Meerut

    Kanpur

    Mysore

    Mangalore

    Hubli

    Vapi

  • Development on Pace for an Emerging Market

    9

    132

    29

    1 2 3 4 5 6 7 8 9 10

    Pizza Hut IndiaTotal Restaurants by Market

    Pizza HutIndia

    KFCChina

    Years of DevelopmentYears of Development

  • Solid Unit Economics in Early Phase

    23%Cash Flow Margin (Pre-royalty)

    300Cash Investment ($ thousands)

    400+Average Unit Volume ($ thousands)

  • Growth Plan for 2006

    5New Cities

    Number of New Openings

    35New Restaurants

  • KFC India History

    Started in 1995 first western QSR

    Faced political issues in first attempt (95 96)

    Relaunched in 03 new asset design, wider vegetarian menu

    Equity restaurant opened in Hyderabad in 05

  • KFC

    11

    1

    95 96 97 98 99 00 01 02 03 04 05 F

    Where We Are Today

    5 franchisees and company investment has begun

    Developed vegetarian menu . . . 1/3 of population

    KFC rice meal starting at 50 rupees ($1.10)

    In six cities: Bangalore, Hyderabad, Calcutta, Pune, Chandigarh, Ludhiana

    Total Restaurants

  • KFC Menu

    299 40 49 77 87 89 99

    36 39 67 73

    Vegetarian Items

    Vegetarian Meals

  • Solid Unit Economics in Early Phase

    20%Cash Flow Margin (Pre-royalty)

    500Cash Investment ($ thousands)

    600+Average Unit Volume ($ thousands)

  • KFC Growth Plan for 2006

    3New Cities

    Number of New Openings

    15New Restaurants

  • Why We Are So Optimistic about India

    Tremendous long-term GDP growth potential

    Large middle class, growing rapidly

    Open landscape for well-executed brands

    Yum! success factors

    Infrastructure in place

    Local team, supply chain established, well-resourced franchisees

    5,000+ strong local Yum! family deep rooted operating capability

    Pizza Hut, a highly trusted brand

    Full speed ahead on development