Fried chicken is still flying out the door for fast food franchise operator Restaurant Brands, but pizza sales continue to melt in the face of heated competition.
The firm yesterday announced a 1.3 per cent drop in sales for the second quarter, reflecting a decline for two of
its brands, Pizza Hut and Starbucks.
But the decline for Starbucks - which had to date been a star performer in the company's brand trinity - was slight.
Total sales for the 16 weeks ending September 8 were $92.4 million, making half-year total sales of $162.3 million. Same-store sales for the second quarter, however, increased 1.2 per cent.
KFC increased sales 4.4 per cent, through continued store refurbishments, strong marketing and menu development. Sales for the company's biggest brand increased $2.7 million, taking them to $63.4 million for the quarter.
Pizza Hut sales were $19.4 million - marking a quarterly sales decline of 15.9 per cent. Same-stores sales fell 11.1 per cent.
"Sales for the brand remain of some concern and, as a result, there have been recent significant changes to the menu, marketing strategies and advertising agencies," said the company.
The revival of its extra-large 14in Jumbo pizza had provided a point of difference from competitors, it said.
Six dine-in restaurants were closed over the quarter as leases expired, leaving 94 outlets.
Starbucks Coffee saw a 2.2 per cent sales decline to $9.6 million following the closure of two poor-performing stores. On a same-store basis, sales for the quarter increased 2.6 per cent.
RESTAURANT BRANDS
Total store sales for 16 weeks to September 8
* KFC
2008: $63.4m
2007: $60.7m
* Pizza Hut
2008: $19.4m
2007: $23.1m
* Starbucks
2008: $9.6m
2007: $9.9m
* Total
2008: $92.4m
2007: $93.6m
