Hilton will continue to expand the two brands and therefore the new restaurants could contribute to the growth of the business.
Both brands performed well in the first half and the number of transactions increased, compared with the same time last year, a trend Hilton thinks will maintain throughout the entire year.
He believes both KFC and Pizza Hut’s revenue will continue to increase in the next six months, which will make 2012 better than 2011. Moreover, even though consumer purchasing power remained low, the same as in 2010, both KFC and Pizza Hut retained their customers and even gained new ones.
Hilton expects growth of about 5% for KFC and of about 5% to 7% for Pizza Hut and PHD (the home delivery unit).
US Food Network, which operates the KFC chain, posted about EUR38 million in revenue in 2011, slightly up by 1% on 2010. American Restaurant System, which operates Pizza Hut (which includes both restaurants and the home delivery unit PHD), saw an increase of 9% in revenue to EUR23.8 million. Under the circumstances, the cumulated revenue of the two chains might exceed EUR65 million.
Romanian consumers eat more often at KFC and Pizza Hut, Mark Hilton says, but the average bill remains the same as in 2011.
A source of growth for the two chains is the opening of new restaurants. Two drive-thru KFC restaurants have been inaugurated in Arad and Iasi (W and NE Romania) this year so far and three more should follow for a total of 44. The 2012 strategy largely entails opening drive-thrus, Hilton said.
As for Pizza Hut, a restaurant was opened in the AFI Palace Cotroceni in Bucharest (west of the city) early this year and a new one should open in a shopping center outside the capital city, but Mark Hilton would not say exactly where.
The chain will continue to expand outside Bucharest with its PHD brand, which should generate more than 30% of Pizza Hut’s revenue this year, the company’s official said.
There are 14 Pizza Huts and nine PHDs in Romania.
The two chains are indirectly controlled by businessmen Gabriel Popoviciu and Radu Dimofte, according to available information.
(English version by Loredana Fratila-Cristescu)