Monday, February 25, 2013

Pizza Hut plans to double in size in São Paulo

The current performance of Pizza Hut in Sao Paulo little recalls the difficult path that the American brand found to establish in the country. Is that Jorge Aguirre, Chief Executive of Pizza Hut in the greater São Paulo and masterfranqueado, realized that giving a Brazilian touch to the brand could leave the financial taste even more delicious.
Willing to take pizzas of all sizes and flavors to the table of paulistanos, the Executive announces another expansion of the network in the State, which will have six more units this year, adding up to 28 units.
With the full border, the Executive will invest $ 15 million in 2013, the year hoping to end with a turnover of r $ 104 million. "We want to keep the goal to grow annually by double digits. For this we invest in reform and expansion, "says Aguirre exclusively to Brazil.
Stores that still maintains the American standard have the taste of dishes on the menu.In the menu, the Brazilian pizza-recipe more sold on country-dispute space with the Americanized Pan Mass.
The more tropical menu, which includes new flavors of pizza and desserts exclusively developed by the team in São Paulo, helped the Executive to achieve last year a turnover of r $ 85 million. In 2012, Aguirre has deployed four new establishments-two less than planned.
"The goal was affected by issues of real estate opportunity", justifies the Director who invested $ 9 million in the period-$ 1 million more than anticipated.
The need for expansion of the brand is a desire for Aguirre, who faces a daily struggle with six thousand candidates. The Director is expected to arrive in 2017 with 48 restaurants under his command, in addition to interest by other States.
"It is possible that in those four years we see new possibilities," he says. Among the opportunities are Minas Gerais, Bahia and Pernambuco, where the network is not yet present.
And the Executive's performance has boosted the mark in the country. Currently 22 establishments located in the greater São Paulo represent 28% in the number of stores in Brazil and are responsible for 35% of the sales of the brand in the country, which totaled r $ 228 million last year.
The cost of opening a restaurant varies between $ 1.2 million and $ 1.8 million, while the opening of delivery units and in food court demand between $ 800,000 and $ 1 million.
Internet
To further expand its billing, the Executive is looking with attention to the opportunities opened up by the Internet. "Today 30% of our total sales is via the Internet and we expect this number to 50% this year."
Aware of the numbers, Aguirre, who has invested mainly in expansion into malls, implemented the model called "counter for the journey".
In it, the client can perform the request and pay through the application and then remove the pizza directly on the counter. "We are investing in this model because of the 30 percent of Internet orders 25% are made by mobile application."
Change of scenery
Pizza Hut in Brazil appears to have entered the right way to understand what the Brazilian want. Is that when the company arrived in the country in 1989, still controlled by PepsiCo, did not please the consumer with its American menu.
The changes started from 1997, when Yum! Brandes, at the time a division of PepsiCo spent to manage alone the operation of Pizza Hut, Taco Bell and KFC.
But if Pizza Hut has been showing success in São Paulo, her cousin the KFC did not have the same luck. Focused on the market, the brand saw its debut in the country become a failure, especially in São Paulo. As a result the Yum! had to close 15 stores in the city.
19 establishments are currently in operation, with 13 located in Rio de Janeiro and six in Sao Paulo.
Brasil Econômico
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