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14.
“Think Outside the Bun.”
15.
2003 was another solid year for Taco Bell —
filled with terrific products and results. Our
Customer Mania culture helped drive company
same-store sales growth of 2% — and for the
first time — our system average unit volume
exceeded $1,000,000.
CHAMPS performance — tells us that we’re on the right track
and providing a more consistent customer experience.
Mexican-inspired products like our delicious tacos, filling
burritos, signature quesadillas, and innovative Border Bowls®
had customers coming back for that “Taco Bell taste” you can’t
get anywhere else. And 2004 promises some great specialty
items as part of our new Big Bell Value Menu.
I hope you’ll agree we’ve made solid progress this year, but
we believe many opportunities remain — and we’re committed
to even better results in 2004. It’s our passion around People
Capability, Operations Excellence,
Innovative Products and Marketing,
that will entice more and more hungry
customers to Think Outside the Bun!
®
The Taco Bell team is also delighting our customers with
a more consistent, satisfying experience every time they
visit — and we’re seeing particular progress during Late Night.
We’re proud of the fact that QSR Magazine rated us second
in the overall drive-thru experience in their 2003 Drive-Thru
Survey. And even our internal operations measurement — or
We’re thrilled to see our customer compliments up 59% over
last year — and our employees are telling us they’re more satisfied as well! In fact, we’re proud our team member turnover is
down to 107% in 2003 from 221% in 2001.
Emil Brolick
President and Chief Concept Officer, Taco Bell
16.
“Gather ’Round the Good Stuff.”
Despite a challenging environment in
2003, Pizza Hut made steady progress
in the second half of the year by growing
company same-store sales in seven of
the last eight periods. This was due, in
large part, to the success of a brand new
and exciting marketing campaign that
invites our customers to “Gather ’Round
the Good Stuff™.”
Our new advertising, products and promotions reinforce that
we’re the family pizza company for nearly 50 million Pizza Hut
customers each week. In 2003, we introduced family-friendly
products like our first-to-market, lower fat Fit ’N Delicious™
pizzas. And we launched some family-focused promotions, like
our DVD offer with every pizza purchase at menu price... giving
our customers another fun way to gather around our delicious
pizzas. We also tested a range of new products that we’ll take
to market in 2004, like the recently launched 4ForAll® pizza,
offering four separate pizzas in one box.
I’m also proud Pizza Hut achieved the lowest team member
turnover in the industry, at 99.6%. Our leaders have made great
strides in delivering 100% CHAMPS with a Yes! attitude to each
of our customers, and the results are not going unnoticed. In fact,
customers in the 2003 Customer Satisfaction report from the
University of Michigan rated Pizza Hut 7% better than in 2002.
We’re going to keep working hard to convince more and more
customers to “Gather ’Round the Good
Stuff™” with Pizza Hut pizzas.
Peter Hearl
President and Chief Concept Officer, Pizza Hut
17.
18.
KFC What’s Cookin’
19.
2003 was a challenging year for KFC. Early
in the year we had some success with Honey
BBQ Boneless Wings, which drove samestore sales by 6%, however our sales for the
balance of the year declined. After listening
to the voice of our customers, we have identified the critical issues that have caused our customers to visit
us less frequently. Simply put, our customers told us we need to
be more Relevant, and more Reliable. We’re going to respond by
working hard to rebuild that trust, and re-earn customer loyalty.
We have a plan in place for a fresh, exciting KFC, one that our
customers will consider Relevant and Reliable. We began that
journey toward the end of the year by introducing ads that invite
our customers to KFC What’s Cookin’, which got people talking
about our unbeatable fried chicken. We then were named as
one of the top 10 fastest drive-thru restaurants in America by
QSR Magazine, a major win on the operations front. Building
on this momentum, in 2004 we will be introducing new, delicious non-fried products, outstanding value meals, better-run
restaurants, new menu boards and improved product packaging.
And we’re not going to stop there….You’ll see a whole new
advertising campaign that will remind our customers that our
fried chicken is kitchen-fresh. And one of America’s hottest
race car drivers, Dale Earnhardt Jr., will be behind the wheel
of the new KFC car, convincing our customers to rush to KFC
this summer for our Finger Lickin’ Good fried chicken.
As you can see, there’s a lot cookin’
at KFC.
Gregg Dedrick
President and Chief Concept Officer, KFC
20.
“Surfs up... Time for a Frosty Float.”
21.
Surf’s Up. Long John Silver’s is the clear
leader in quick-service seafood, with a
commanding 35% category share. We
plan to dive in to even bigger growth
through multibranding, which will make
us a true national powerhouse.
We drove our U.S. company same-store sales growth 3% in 2003
and will be the key multibrand partner for the other Yum! brands
going forward. In fact, Long John Silver’s will be the multibrand
partner in about one half of the 500 multibrand additions which
we expect will open in 2004. This “Fish First” strategy gives
us a lot of new opportunities for future growth.
In 2003, our Fish and Shrimp Treasure Chest Family Meal
was a huge success, increasing sales
of our family meals by 22%. We also
set an all-time weekly sales record
for the Lenten season — $17,000 per
restaurant — the highest weekly sales
in our brand’s history! And we made it
easier to eat our shrimp on the go with
our new Bucket of Crunchy Shrimp
promotion. We’re proud of our heritage of offering signature
batter-dipped products to millions of seafood lovers for nearly
35 years. With multibranding, the Surf’s Up! to create shrimp
and seafood excitement in the years ahead.
A&W All American Food has been offering
our signature frosty root beer floats, 100%
pure beef hamburgers, French fries, onion
rings and chili dogs for nearly 85 years.
When you’re the longest-running quick service restaurant chain
in the country, folks have lots of fond memories of A&W. Today,
as a multibranding growth partner, we offer our delicious food
as “Hometown American Favorites Made Fun.” We’re capitalizing on our nostalgia by inviting our customers to come in and
ring our bell every time our teammates deliver on our Customer
Mania Promise. And if you haven’t tasted one of our frosty root
beer floats lately, drop by your hometown A&W to rediscover
how sweet it can be!
Steve Davis
President and Chief Executive Officer, Long John Silver’s, Inc. and
Chief Executive Officer, A&W Restaurants, Inc.