RBD investigating Taco Bell
http://www.stuff.co.nz/business/indu...e-for-Auckland
I think quite a few people have been anticipating something along these lines.
Personally, I really like Mexican food, but from all accounts Taco Bell isn't very good.
RBD Annual Shareholder Meeting Report 2011
The chairman's and CEO's addresses are on the net for all to read. So this is a report on the vibe I got from attending the meeting, rather than a lot of new facts.
I feel things are moving a lot faster with Taco Bell than the printed speeches would let you know. A fourth restaurant arm has been on the horizon for years and Taco Bell was always been a possible option. But it was somewhat of a shock to learn that Chairman Ted van Arkel and CEO Russel Creedy had been over to the USA and Canada checking and costing out Taco Bell businesses on the ground, even though no ultimate decision on adopting the concept in NZ has been made. And it was even more of a shock to hear Ted van Arkel on National radio this morning saying he would like to have an evaluation Taco Bell site up and running in Auckland by the end of the year.
At the end of the official speeches, there were three ‘mailed in’ questions answered by Chairman Ted. The first related to the performance (or is that non-performance) of Pizza Hut. A shareholder asked: How did the recent performance of PH compared to Dominos in the NZ market over the same period? Chairman Ted said that results for Dominos were not publicly disclosed to a level that would allow direct comparison with PH. I am sure that is true. Nevertheless I think something useful from those DMP results posted in Australia could be estimated.
The second question related to KFC in Australia and whether RBD would be interested in going back to Oz, but this time with their most successful brand. Chairman Ted said that while their most recent foray into Australia with PH in Victoria was not successful, they do recognize that KFC is a different deal. There are no firm plans but ‘never say never’.
The third question related to Yum’s Chinese Market brand, ‘East Dawning’, created because Chinese people have a liking for Chinese food (!). Could that have a future in NZ? Chairman Ted said that management had examined a Chinese food concept, more along the lines of Dumplings. However the conclusion was that the economics of this kind of business are more suited to the lower overheads of Mom and Pop owners. And just because a concept works in China does not mean that it will translate well to New Zealand. I interpreted that as a ‘no’.
During Oral question time, an initially skeptical David Pilkington reported going for breakfast at KFC in the U.K. Despite his skepticism, he reported a good experience with a special egg rich ‘breakfast menu’. So the KFC breakfast idea will get a trial in New Zealand. If nothing else that will settle once and for all the “Which came first, the chicken or the egg” question.
From CEO Creedy we learned the head of Starbucks has gone. There was an impression of urgency given about bringing back a greater presence for Starbucks in Christchurch, following the loss of three stores cordoned within the central city earthquake ‘red zone’. At the time I had visions of a hastily erected tent in the middle of Hagley Park filled with green aproned staff and no customers. Thinking later, I believe the push to re-expand is more based on a need to build the economy of scale with suppliers that allows an acceptable cost structure. At the moment there would be several Mom and Pop owned cafes that would be doing a bigger trade than Starbucks remaining Riccarton Mall outlet (which nevertheless to me seems busier than it has ever been).
Starbucks NZ may be rudderless, but even the new man heading Pizza Hut New Zealand, Arif Khan has only been on the job for three weeks. He has Pizza Hut corporate experience in the Middle East and Morocco. I had a brief chat with him after the meeting and he came across as an energetic type who is eager to make a difference. Let’s hope Creedy can make use of him, even as he slashes the PH role in half by offloading up to half of the PH store network to private buyers over the next few years.
‘After meeting nibbles’ consisted of hunks of regular KFC, and Pizza Mia slices, served in the Peppers Restaurant at the Clearwater Resort. The food-serving partners were well trained, but I thought he food quality only adequate. Although could that be because never has such low brow food been served in such a high-class establishment?
SNOOPY