Subject category:
Strategy and General Management
Published by:
IBS Research Center
Length: 13 pages
Data source: Published sources
Topics:
Turnaround strategy; Fast food industry; US quick service restaurant industry; Obesity; McDonald's; Changing consumer taste; Value proposition in food industry; Value menus; Healthier products; Full-service restaurants; Independent restaurants; Breakfast menus; Premium coffee; Healthy foods; Trans-fats
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Abstract
Yum! Brands, Inc, one of the world's largest restaurant companies based in Louisville, Kentucky, operated in more than 34,000 restaurants across 100 countries. In 2006, Yum! generated more than USD9.5 billion in total revenues which included sales and franchise fees. But in 2007, disappointing performance in its US division, forced Yum! to re-look at its business. Changing consumers' tastes with increasing awareness towards health and obesity problems affected Yum!'s performance in the US. To turn around its US business, it decided to follow McDonald's business model. It decided to introduce new products like beverages and breakfast meals; and expanded value menus to offer healthier products in KFC, Taco Bell and Pizza Hut in the US. But whether, by following its competitor's business model, it would be able to turnaround its US business division, remains to be seen.
About
Abstract
Yum! Brands, Inc, one of the world's largest restaurant companies based in Louisville, Kentucky, operated in more than 34,000 restaurants across 100 countries. In 2006, Yum! generated more than USD9.5 billion in total revenues which included sales and franchise fees. But in 2007, disappointing performance in its US division, forced Yum! to re-look at its business. Changing consumers' tastes with increasing awareness towards health and obesity problems affected Yum!'s performance in the US. To turn around its US business, it decided to follow McDonald's business model. It decided to introduce new products like beverages and breakfast meals; and expanded value menus to offer healthier products in KFC, Taco Bell and Pizza Hut in the US. But whether, by following its competitor's business model, it would be able to turnaround its US business division, remains to be seen.