10_85 12_85 20_84 25_85 CRM Digital experience Member exclusive promotions and experiences Launch Super App 2.0 to enhance service experience Membership and digital engagement: Just one more visit I I Aggregator cooperation Joint marketing campaigns on aggregator’s platform
Pizza Hut has expanded delivery stores footprint… >2000 I I I Current business model Over 2,000 stores offering delivery today PHHS PHDI 1696 373 Number of stores offering delivery
Delivery sales as % of company sales … leading to significant sales growth I I I Delivery sales growth (Rmb mn) +45% +46% 2016 2017 2016 2017 +45% Ӡ 900
Pizza Hut delivery integration to provide a seamless consumer experience across multiple channels Short term challenge Unify the brand Strategy for long term I I I One brand with consistent image and message Standardization for high quality execution and efficiency Logo / Menu / Packaging / Marketing / Organization Store network optmization
Accelerate remodels to rejuvenate brand image I V
Target to have ~30 Bistro stores in ~10 cities by the end of 2017 I V
Ph+ model stores in high-end commercial complexes I V
Still in the early stages of laying a solid foundation for future growth OPTIMIZE DELIVERY NETWORK EXPERIMENT NEW MODELS FIX FUNDAMENTALS Rationalize MENU Innovate & upgrade PRODUCT taste Revamp SERVICES ENHANCE DIGITAL CAPABILITIES
KFC Update by Johnson Huang
Shanghai Oriental Tower lit up for KFC CHINA Video 1 (30th anniversary)
Strong sales momentum in the past 4 quarters
Week 1 Week 2 SR 193 110 MX 10.4% 6.1% Introducing several disruptive innovations in 2017
Providing unique and rich products Angry Burger
Upgrading to fresh and premium ingredients Avocado Burger
Successful launch of Cremia and seasonal flavors of ice-cream with good value Cremia Matcha Strawberry Mango
Providing abundant value on top of food innovations
Building a young and unconventional image Video 2 (Lu Han)
Breakfast - one of the key growth drivers in 2017…
KFC delivery maintains strong growth momentum 11% Delivery as % of company sales Current business model
Accelerate Penetration in High-speed Train Delivery In over 20 stations with strong market share
Building a fun and credible coffee image
Building on the latest trends to connect with kids
97 million members 33%* of sales contribution * As percentage of system sales
Exclusive value Free trial Member Tuesday Member life cycle Offering great promotions to members to increase stickiness
Promoting healthy lifestyle through direct engagement K-Run club 3 x 3 basketball
KFC Little Migratory Birds Fund One Yuan Donation Program KFC First Light Fund KFC Angel Restaurant KFC Community Caring Program Communities Youths Children Building upon our socially responsible brand
Enhancing store image through restaurant remodeling 834 Year to date, 378 stores remodeled
Unique store designs capturing local history and vibe
Revamped brand image to Young, Stylish & Trustworthy… 1 7 6 4 2 3 5 Trustworthy Young/ Energetic Stylish Interesting Fashionable Happy Warm hearted