KFC and Pizza Hut have aggressive expansion plans in Brazil

After many comings and goings, the Yum! Brands, which owns Pizza Hut and KFC in Brazil, appears to have finally found a suitable business model for Brazil. Smaller restaurants and franchises in malls, in addition to regional flavors, is the bet of the company to the country.
Three years after the opening of an Office in the country, the company's expansion plans more aggressive and ambitious for the brands of fast food.
Agustin Dominguez, Director of expansion of Yum Brands in Brazil, said Brazil is "the only big country that does not already have a massive presence of these brands," in an exclusive interview to Exame.com. He commented on the new models of networks Pizza Hut and KFC.
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Pizza Hut
Pizza Hut came to Brazil in early 1980, but spent the following years with a very shy presence. In 2012, Agustin Dominguez arrived in the country to be the walk, ride an Office and reshape the business model.
The restaurants of the mark that had stood still open were too big and remained virtually empty most of the day, according to the Director. In addition, the investment was too high and could exceed 4 million reais.
That's when he realized the potential of shopping malls and created the Express model, thought especially for the country. With a size and reduced investment, the shops had flow all day and almost equal to the billing of largest restaurants.
With this model, "the Brazilian consumer has changed its relationship with Pizza Hut," said Dominguez. Before, about 80% of the flow was at the time of the dinner. Today, the lunch comes to match up to 60% of sales in some units.
The company began to open 30 shops Express every year, instead of the 2 units per year until then. Until 2018, the plan is to open 100 new units per year, said Dominguez.
The second focus of expansion are the stores Super Delco, a street unit smaller than the traditional restaurants. Still focused on the shaft São Paulo-Rio de Janeiro, the goal is to expand this template for cities like Macapa, Bel horizon and Cuiabá, says the Director.
Menu
Even if the business model for the Pizza Hut has been greatly modified, the menu has undergone few changes, says Dominguez. The mass Pan, taller and caloric is the dish of the pizzeria.
Even so, the Brazilian menu has its peculiarities. Here, the pizza is assembled in time and mass, made every day, different from what happens in the United States, where the dish is just reheated.
Another difference is that the Brazilian would rather order a slice of pizza instead of a bud. So, some restaurants offer a Slice Bar, to mount their own selection of slices.
There are also unique flavors. In the Northeast, makes the pizza of dried meat and, in São Paulo, was created the chicken with cream cheese.
On competition with other pizzerias, Dominguez says that "we don't want to fall into the trap of being like everyone else. Consumers like the Pan mass and choose Pizza Hut just because it's different. "
KFC
KFC first came to Brazil as a brand of Pepsico. After the KFC separated this company, decided to get out of some markets, like Brazil, in 2000. Only some units in Rio de Janeiro remained.
When Yum Brands has set up the Office in Brazil, in 2012, KFC also suffered a reshaping. The shops of more than 100 square meters of shopping malls have come to half the size.
In recent months, four stores, in the new format, were opened in São Paulo to test the model. Dominguez says that you want to replicate the model for the rest of Brazil.
Asked if Brazilians really eat buckets of fried chicken, Dominguez said this is the best selling product in the month of release of the store. "Serves as attractive. Then, consumers realize they have many other dishes and sandwiches with chicken, "he said.
In Brazil, other than the country of origin, the network also sells French fries and desserts with ice cream and side dishes such as rice and beans and Beef Stroganoff sauce on some news. "Here, the menu is diverse," says the Director. The food is less spicy.
Today, there are only 22 shops, but the target is to reach 100 until 2019.