INDIA – Yum! Brands chief executive Greg Creed called India a stand-out market, while announcing the US restaurant giant’s third-quarter results.
“India was a standout market for Pizza Hut with its fifth consecutive quarter of same store sales growth,” Creed said during an investor call.
The company owns brands such as Pizza Hut, KFC and Taco Bell.
In the past quarter, it posted system sales growth of 8% for KFC and 7% for Pizza Hut, its fifth consecutive quarter of growth in India, signalling a revival in the eating out sector which had been witnessing low single digit same store sales till early last year.
“We had taken some deliberate decisions to reorganise our businesses, associate with like-minded partners and focus on our core product offerings,” KFC managing director Rahul Shinde said.
Two years back, Yum! had consolidated its India business with two franchisees — Devyani International and Sapphire Foods, a consortium led by private equity firm Samara Capital.
“We have signed development agreements with our franchisees in India and I recently met with these franchisees and can feel there is enthusiasm for the brand.
They are great examples of franchises to exhibit the three C’s — capable, capitalised, committed; committed both to our brand and to our culture,” the global CEO said at the earnings call.
“With the perfect pan pizza team members ready for action and the right partners in place, India is poised to accelerate its growth and we look forward to seeing the continued success in this market,” he added.
Yum! is now locally sourcing corn in India, he said.
The global CEO also pointed out that India, along with Brazil, China and Canada, were Taco Bell’s four growth markets.
“We continue to be excited about the potential for this brand internationally and changes to the supply chain such as those made in India will make the brand sustainable internationally over that long-term.”
Taco Bell, Yum’s third brand in India, is much smaller compared with Pizza Hut and KFC.