Jardine Restaurant Group - Stimulating Tastes in Asia
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Jardine Restaurant Group – Stimulating Tastes in Asia FEATURE
Feature 15
Jardine Restaurant Group – Stimulating Tastes in Asia
For over 45 years, Jardine Restaurant
Group (JRG), a part of Jardine Pacific,
has been driving the growth of
international brands Pizza Hut and KFC
in markets across Asia, stimulating
the changing tastes of consumers
and their increasing desire for casual
dining restaurants, quick service
menus and takeaway and delivery
services. Today, as one of the leading
restaurant groups in Asia, JRG operates
over 680 outlets in Hong Kong, Taiwan,
Vietnam and Macau with more than
21,200 employees.
As one of Pizza Hut’s largest
Pizzas are for sharing and enjoying with friends in Jardine Restaurant Group’s Pizza Hut outlets across Asia.
international franchisees with
operations in Hong Kong, Taiwan, processes to set up operations. Most With the vision of becoming the
Macau and Vietnam, JRG has a recently, this has been reflected in number one provider for casual dining,
long-standing and successful JRG’s success in introducing Pizza Hut delivery and takeaway in Asia, JRG
relationship with Yum!, which is to Vietnam where, in just eight years, aims to have grown to 1,000 outlets by
also JRG’s franchisor for KFC in it has become the fastest-growing 2019 and to have diversified into more
Taiwan and Hong Kong, and one pizza brand there with 53 stores. new markets, such as Myanmar.
of the world’s largest restaurant
companies. Over the years, JRG and “In addition to innovative menu “While emerging markets can be
Yum! have worked together to build diversification, Pizza Hut and volatile with ever changing political,
powerful brands through superior KFC brands continue to grow in cultural, social and economic
marketing, breakthrough innovation their highly competitive market factors to consider, we are confident
and compelling value, all based on segments aided by their unrivalled that with our strong brands and
a foundation of winning food and reputations for quality and by business models, we will achieve our
world-class operations. The expertise implementing creative ideas for objectives,” said Mr Yip.
acquired in growing and operating business development through digital
Photo opposite: Pizza Hut Hong Kong Area Coaches
franchises in different markets has penetration and customer loyalty and Restaurant General Managers show off their
enabled JRG to understand and seize programmes,” explained JRG Chief ‘Running Great Shift’ manuals during a training
session with, centre left, JRG Chief Executive Hong
new market opportunities, while Executive Hong Kong & New Markets Kong & New Markets Henry Yip and, right, David
implementing well-established regional Henry Yip. Sturdee of Yum!
‘Pizza and More’ from Pizza Hut Hong Kong
Since its first store opened in 1981 menus, restaurants and concepts “In response, PHHK has gone
in Tsimshatsui East, Pizza Hut based on rigorous research to analyze beyond its core competency of pizza
Hong Kong (PHHK) has become brand performance and ensure and adopted a model of ‘Pizza &
a favourite of local consumers as service standards. More’, with ‘More’ varieties, ‘More’
Thistle vol.1 2015
reflected in the now 109 stores and excitement, and ‘More’ value. This
four million pizzas eaten in Hong “Consumers want excitement, has included introducing dishes other
Kong each year. As market and premium goods, a special experience than pizza, and different restaurant
consumer trends have evolved, and value for money,” said PHHK models and styles.”
PHHK has responded with new Chief Executive Richard Leong.For this and its overall performance Over the last three years,
in the dine-in segment, PHHK was PHD has generated
awarded the Yum! ‘Best Brand record sales growth
Building’ award for 2014. and significant profits
bolstered by a successful
In 2003, market research revealed a store opening strategy,
significant price gap between local fast which has achieved 94%
food and upscale restaurants in Hong delivery coverage of total
Kong, which suggested an opportunity Hong Kong households
for an affordable casual dining model with just 25 stores.
(ACDR). Quick to respond, PHHK
launched its ‘Enhanced Casual Dining “Today Hong Kong is
Experience’ and within one year the only Yum! market
achieved double-digit sales growth in the world to have
PHHK actively engages customers through social media platforms
in the dine-in segment. In 2008, with successfully employed such as Facebook where its fan base has almost trebled since 2013.
rising rents, aggressive competitors a dual brand strategy
and a saturated market creating the and we have become a
opening for a value brand, PHHK case study for Yum! in the region for collateral material of 35
transformed pizza delivery services successful delivery services,” said ACDRs were completely redesigned
with the introduction of PHD. Mr Leong. to feature ‘More’ varieties and a
‘More’ contemporary style.
“Although Pizza Hut was already In such a competitive marketplace,
Hong Kong’s market leader in pizza however, there can be no room for Digital technology plays a key role
delivery, we could not ignore the risk of complacency and PHHK continues to in promoting Pizza Hut’s market
a competitor capturing this emerging develop innovative offerings to satisfy presence. An enhanced online
value conscious segment,” explained ever-changing trends and tastes. Last ordering site enables customers to
Mr Leong. “It required bold vision, but year, it introduced ‘Super Delco’ to track their orders, while lessening
with PHD we succeeded in not only complement its existing ACDRs and the load on PHHK’s Call Centre and
creating a winning value delivery brand meet consumer demand for lighter saving costs. Following the launch of
in Hong Kong, but also a profitable and menus in a more casual café setting. a mobile application in 2010, there
sustainable business model.” In addition, the menus and other has been double-digit sales growth
in this channel with a download
count of 440,000, and since 2013,
PHHK’s fan base on Facebook has
almost trebled. In addition, JRG
is working to build a customer-
centric platform with data analytic
intelligence for customer profiling,
which is due to be launched this
year. The objective is to engage
customers and increase sales
performance by using digital and
social media, as well as traditional
communication channels.
Loyalty programmes are also
important tools in capturing and
PHHK’s loyalty programmes play a key role in capturing and retaining customers. retaining customers. In 2013, PHHKFeature 17
enhanced its existing programme
with the introduction of ‘Gold’
membership, which offered incentives
including 10% discount. Along with
an improved registration process, this
has achieved a dramatic increase in
membership from 110,000 customers
to the current 300,000.
Developing Future Leaders
Recognizing that its people are its
greatest asset, JRG invests heavily in
the development of its employees.
At PHHK, everyone from entry level to
experienced professional is offered PHHK’s innovative Super Delco outlets pride themselves on their excellent customer service.
a structured learning and career
development programme. Operations Director Kelvin Ip. “Indeed, Pizza Hut Hong Kong has also
most Pizza Hut restaurant managers implemented a three-year, part-time
“Through our systemic training began their careers as school leavers Higher Diploma of Business
process, a shop management trainee in a Pizza Hut outlet, and many without Administration run by the Institute of
can aspire to become a restaurant a strong academic background have Vocational Education, which can act as
manager,” explained PHHK excelled to become leaders.” a stepping-stone to a full degree.
Quick Service Success from KFC
In 2013, JRG acquired the KFC quality and safety. This is
franchise from YUM! for Hong achieved by leveraging the
Kong and Macau with the aim of best global procurement
building on its established platform networks alongside a team
in both locations, where there are of professional quality
currently 65 outlets with some assurance inspectors.
2,500 employees serving 150,000 Every KFC restaurant has
customers daily. a Hygiene Manager who
conducts daily inspections
“We have a simple yet central focus and trains all staff to
on making it easier than ever for more follow comprehensive food
people to enjoy KFC’s great tasting safety procedures.
meals by investing in the brand,
focusing on customers and delivering “KFC strives to maintain
great value and tasty chicken,” said the highest standards
KFC Hong Kong and Macau Chief in providing safe and
Executive Officer Alan Chan. delicious food, as well as
Thistle vol.1 2015
the best customer service,”
KFC’s reputation for such meals relies said Mr Chan, “ and this
on the stringent food preparation will continue to be our goal
KFC’s signature dishes showcase its focus on great tasting
methods applied to ensure maximum as we expand.” meals and high standards of food quality and safety.Strong Market Presence in Taiwan
Both Pizza Hut and KFC have had a with the ongoing objective
strong presence in Taiwan since the of enlarging its customer
mid-1980s. JRG took over the franchise base and increasing
for Pizza Hut in 1990, while KFC became visit frequency. Recent
part of JRG in 2010. Since then, both premium toppings include
operations have worked closely Royal Seafood Banquet
with franchisor Yum! to ensure the and Korean Kim Chi BBQ,
implementation of best practices from while the strong sales
around the world and the sharing of momentum behind its
JRG initiatives that have been applied highly successful ‘Value Q’
successfully in the local market. crusts resulted in 100,000
new customers last
Pizza Hut Leads the Way year alone. PHT deliveries not only arrive at their destination within a guaranteed
time, but also freshly made and piping hot thanks to a special device
Unlike other markets where Pizza on the delivery bike, which generates electricity to heat the pouches
KFC Taiwan Aims for carrying the order.
Hut focuses primarily on the dine-in
the Top
business, the bulk of Pizza Hut
Service quality is another of KFC
Taiwan’s (PHT) revenue comes from In a highly competitive marketplace,
Taiwan’s strengths and in 2013,
its highly successful Delco (Delivery KFC Taiwan is constantly challenging
for the fourth consecutive year, its
& Carry-Out) stores of which there rival competitors, as it focuses
commitment to its customers was
are currently 179 in 19 cities and on ‘ Same Store Sales Growth’
recognized with first prize in the
16 townships. and efficiency, along with people
‘Fast Food Chain’ category of ‘The
capability, processes and systems to
Front Line Service Research Report’
PHT’s strategy has been to focus create a viable business model with
produced by Global Views Monthly.
on market share and store growth, the right penetration strategy. KFC has
drive e-commerce sales, and increase 128 stores in Taiwan and is currently
Boosting Performance with
customer loyalty. Most recently, developing a new ‘Harmony’ store
Digital Technology
record-high sales have culminated in design concept that reflects the latest
the launch of a new brand campaign KFC brand image, ‘Always Original’. JRG’s operations in Taiwan are making
designed to strengthen emotional increasing use of digital technology
bonds with consumers and further As the acknowledged chicken ‘expert’ to boost sales and profits and target
enhance the brand under the tag of amongst food service providers, and attract more customers to their
‘making small happiness great’. KFC is leveraging this leadership to online ordering websites.
develop multiple chicken related offers
PHT also continues to introduce designed to win over the competition. With the aid of data analytics and
innovative new toppings and crusts In 2014, KFC extended its menu search engine tools, PHT and KFC can
with the introduction track traffic on their online ordering
of a roasted chicken sites as well as improve customers’
option and innovative interface and experience. Both
new flavours, as well sites now offer desktop and mobile
as additions to its interface with the latter making
signature egg-tart range. an increasing contribution to total
All new products are on-line sales. Indeed, within months
developed in KFC’s test of the launch of its mobile interface
kitchen, where the New in July last year, KFC’s mobile on-line
Product Development sales surged to over 30% of total
team also simulates on-line sales. Similarly, PHT is on
in-store processes and target to achieve 45% of its total
optimizes recipes and delivery sales this year via its online
The General Manager of a KFC Taiwan restaurant emphasizes a point to
a staff member during a daily training session. cooking methods. ordering site.Feature 19
People Development Aids product quality, service and restaurant Hut and KFC Taiwan, JRG Taiwan’s HR
Business Growth maintenance. Other development team is working on initiatives to aid
programmes created specifically talent acquisition, development and
JRG Taiwan believes that developing for store managers focus on retention. Last year, JRG strengthened
the capabilities of its people to meet operations and financial management its collaboration with local schools
customer needs is a top priority in and marketing. and is offering internships to meet
driving business growth. short-term manpower demand in
As part of a ‘step change’ mindset, stores. In the longer term, it is hoped
Through YUM! ‘CHAMPS’ programmes which includes incorporating the that this will help JRG to establish a
for frontline employees, JRG aims spirit of ‘Achieve Breakthrough Result’ pool of potential store managers.
to increase customer satisfaction in into the daily operations of Pizza
Pizza Hut Wins Over Vietnam Market
In the eight years since JRG introduced its western flavours and attracted a Until recently, Pizza Hut Vietnam’s
Pizza Hut to the Vietnam market, the new generation of young, active and focus was on developing the ACDR
brand has won over consumers to mobile customers. model, but with over 37 such
restaurants now in operation, it
A significant milestone for Pizza is currently introducing the Super
Hut Vietnam was the opening of Delco model with the smaller, but
its 50th store in November last more contemporary design of the
year, reflecting a remarkable 50th store at Nguyen Thai Son (Go
period of growth during which the Vap District) in Ho Chi Minh City,
number of stores doubled from 27 a typical example. So far 16 Super
at the end of 2012 to 53 at the end Delco stores in five cities have been
of 2014. Located in 11 cities, Pizza rolled out, offering a blend of dine-
Hut Vietnam is now the country’s in, delivery and takeaway options
leading pizza restaurant chain to meet customers’ ever-changing
The official opening in Ho Chi Minh City of Pizza Hut
with the highest number of stores eating trends.
Vietnam’s 50th store, which is one of its new contemporary
Super Delco models. and widest geographic coverage.
Great Recipe for the Future
Over the years, JRG has successfully strategy. In more mature markets, future success as we continue to bring
grown its Pizza Hut and KFC brands to there is often fierce competition with wonderful dining options to consumers
become leaders in the mature markets well-established international brands across the region.”
of Hong Kong and Taiwan while, more and numerous local competitors.
recently, also expanding into Vietnam
and exploring potential opportunities “In any market, success cannot
such as Myanmar. be solely achieved by battling
competitors,” said Henry Yip. “It also
Thistle vol.1 2015
Challenges differ from market to requires innovation to meet consumer
market. In emerging markets, where demands and tastes and to create
consumers may not have been the opportunities, which can then
previously exposed to international be used to advantage. With JRG’s
brands, there are many factors to years of experience and expertise,
consider in formulating a winning we believe we have a great recipe forYou can also read
