Yum! Brands to focus on sales ‘layers’ in 2010

In the United States, Taco Bell’s value positioning seems to be working, and the company is prepared to move forward with breakfast, which should launch nationally in 2011, as well as other previously announced initiatives, like new beverages and a soft corn taco. The company is most optimistic about Taco Bell’s potential in 2010, the company’s strongest “U.S. growth engine,” Novak said.

Pizza Hut and KFC face a number of challenges, and the company is “absolutely passionate about addressing” them, he said. Pizza Hut appears to be gaining with its $10 Any Way You Want It everyday promotion, a response to consumers’ saying the pizza is too expensive. The brand’s long-term strategy is to expand the brand beyond pizza to include pasta and wings, with new promotions this year. Premium pizzas are still in the pipeline.

KFC’s Kentucky Grilled Chicken has added good mix for U.S. stores. The brand will focusing on improving operations, particularly speed of service and product availability. Novak expects a tough half-year ahead for the chicken chain, which will focus on value as well as more choice and better service.

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