US-based Yum Brand Inc recently restructured its operations, carving out its India unit as a standalone entity under Niren Chaudhury, who would be its president. Till then, the 48-year-old was managing director, India sub-continent. In an interaction with Viveat Susan Pinto, Chaudhary, who will report directly to chairman and CEO David Novak, highlights his priorities for the unit, which is now called Yum Restaurants India. Edited excerpts:
What are your priorities as president?
In the near term, our goal is to double our business to 1,000 stores, employing more than 50,000 people over the next three years. We are on our way to achieving it; we are encouraged by the response to our brands so far.
Apart from Pizza Hut, Taco Bell and KFC, which other Yum brands will find their way into India?
We are focused on growing KFC, Pizza Hut and Taco Bell to their full potential at the moment.
India remains a promising market from a growth point of view, but inflation and interest costs have been eating into disposable incomes here. Does this bother you?
The eating out market in India is estimated to be $90 billion. Of this, the organised market is less than two per cent. As long as we ensure that we have a strong value proposition our brands will continue to grow. Inflation and cost pressures actually force us to get more efficient with our business model.
As the doors to foreign retailers open up, will it be difficult to get good properties and locations?
We do not see this as a major concern.
How are you managing your back-end as you expand your business here?
We are putting in place a supply chain network as well as people capability to support our growth agenda.
As competition increases, will holding price lines be easy?
We’ll always endeavour to offer the most compelling value proposition to consumers.