Franchise Talk

Reviving Pizza Hut the big challenge

July 22nd, 2006 | Author: Jack

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Finding a winning formula for the Pizza Hut chain remains the biggest challenge for Restaurant Brands, new chairman Ted van Arkel says.

Van Arkel, a full-time professional director who yesterday replaced retiring chairman Bill Falconer, said the company’s new-look KFC stores were performing above expectation and more Starbucks Coffee outlets were planned.

“The Pizza Hut side is the challenging side of the business and we need to work through to ensure we obtain the right formula,” said Van Arkel, who joined the Restaurant Brands board almost two years ago.

“Times have changed and the consumer is really demanding food on a more convenient basis – so we are working through those challenges – and, of course, competition has also increased substantially since Pizza Hut was first established in New Zealand.”

A former managing director of grocery heavyweight Progressive Enterprises, Van Arkel brought his expertise in fast-moving goods to the board.

“My skills and my retail knowledge, I would like to think, have already started to come through.”

He is also chairman of juice company Charlie’s and Unitec NZ.

Van Arkel wanted to speed up the KFC transformation programme – in which stores are redesigned inside and out with modern amenities such as plasma TVs, outdoor seating, larger tables for family groups and new branding.

“All of those that we have been able to transform are trading above expectations – which is exciting – so we believe we’ve got a formula that can be rolled out now during the next two or three years.”

He said more Starbucks Coffee outlets were likely for “select locations”, including Auckland’s CBD and developing areas.

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