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Restaurant Brands thirsty for beer market

By Phil Boeyen, ShareChat Business News Editor

Friday 14th July 2000

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Restaurant Brands is confident its new "beer and pizza" deliveries will be a hit when it trials the service in Auckland in the next few weeks.

Pizza Hut will be offering three to four brands of beer and the same number of wine choices for home delivery.

The trial will test operational issues such as stocking and handling, and if they work well it is likely the service will be rolled out nationwide.

Restaurant Brands head Jim Collier says with the purchase of the Eagle Boys pizza chain the company now has a pizza store within eight minutes drive of 90% of the New Zealand population.

He says with that kind of distribution capability the company looked for ways to add to its delivery product, and didn't have to look far before deciding on the pizza and beer concept.

The beer delivery could be the edge the company needs in the tough pizza delivery market.

Meanwhile Mr Collier says the operations at its other two brands - KFC and Starbucks - are on the up.

Starbucks recently opened its 13th New Zealand store, in Christchurch, and sales there have exceeded expectations. The next store is expected to be open in Dunedin by the end of September, and the company is on target to open between 4 and 6 more stores before the end of the year.

Restaurant Brands has been looking to Starbucks as one way to lessen its dependence on the traditional KFC business, but Mr Collier says that too has been going well in past months.

He says school holidays always help sales figures, and the current "Popcorn Chicken" promo has also been clocking up extra sales, in line with the success of the product in overseas KFC markets.

Restaurant Brands also holds the rights to the Taco Bell franchise.

Jim Collier says four Taco Bell stores have opened in Sydney but while RBD is "watching with interest" it has no current plans to open any stores in New Zealand.

Last month Restaurant Brands reported its sixth consecutive quarter of sales growth, with total sales at $68 million --a 2% increase compared with the same period last year.

RBD is due to announce its half-yearly result on July 19th.

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