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Industry/Strategy Analysis for Yum Brands

In: Business and Management

Submitted By luxiao417
Words 1298
Pages 6
Topic: Industry/Strategy Analysis for YUM Brands
Introduction
Yum Brands based in Louisville, Kentucky, is one of the world’s largest restaurant companies with over 41,000 restaurants in more than 125 countries and territories. Primarily through the three concepts of KFC, Pizza Hut and Taco Bell (the “Concepts”), the Company develops, operates, franchises and licenses a worldwide system of restaurants which prepare, package and sell a menu of competitively priced food items. Their restaurant brands – KFC, Pizza Hut and Taco Bell – are the global leaders of the chicken, pizza and Mexican-style food categories. Their goal is to continue to build three global, iconic brands that people trust and champion. They are evolving KFC, Pizza Hut and Taco Bell into more relevant, engaged, connected and caring global brands.
Industry/Strategy analysis
Industry Analysis
Demand
Even though US encounters cautions consumer spending, sluggish economic growth in the first quarter of 2014, customers’ demand in the restaurant industry is still stabilizing after years of declines, which can be found from the recent US sales trends. According to S&P industry surveys, the largest US restaurants as a group continued to recover in 2013 from the great recession.
There are a number of reasons discussed as following:
First, fast-food restaurant consumption is an important lifestyle for each individual. Restaurants are offering products and services that consumers actively seek out and enjoy; an activity in which consumers is selecting to engage despite cash-on-hand restraints because it is an important component of their lifestyle.
Second, fast food restaurants’ pricing practices and product design target people who are lower-income, are driven by cost and taste more than nutrition concerns, and have limited time to prepare meals at home. Customers are relatively insensitive to...

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