It has been a while since my last letter, however this is natural process when new leaders (i.e. Oksana) are stepping in and taking on more responsibility. When Oksana took over Operations, I have

Dear AmRest Russia,

It has been a while since my last letter, however this is natural process when new leaders (i.e. Oksana) are stepping in and taking on more responsibility. When Oksana took over Operations, I have decided to give you my “update” on business once every Trimester from different perspective. First four months passed and my executive summary is quite simple: “Wszystko jest Mozliwe (WJM)”. I know it sounds basic and simple, however this is what happened…

Before getting into details, I would like to thank you all for delivering strong results in both brands (our YTD: SSS is 112 and SST 105). KFC is having another great year of double-digit growth - SSS 114 and Pizza Hut is outselling the whole segment by at least 25 % (other restaurants in casual dining segment) with SSS 102 (and SST 107). Our margins are much better than AOP by 1.5 pp (company EBITDA 10,5% vs. AOP at 9.0%). Here this is world class Operations that is driving it with leadership of Oksana (Galina and Max), however every single department is contributing and performing to their best: Dima Petrov and whole supply team – keeping our COS within AOP (and even over-deliver... and I know there is more positive news to come from Dima in coming months); Vika Fedorova with the HR team being the guardian of our CVs, working on development programs to strengthen our people capability and skills further; Irek Haibullin and whole maintenance team – just started making a change and our life in restaurants easier; Sasha Nigmatullin and Leonid Koptyaev with their NSO focus supporting Operations driving our sales already to 87% of CapEx (from 65 % just 6 months ago); Maciek Mausch and whole finance team keeping great control of our numbers (I know we still need more processes to get more lean) and influencing all parts of the business (here for me predictability is critical and Sergey Lutsenko is doing great job of analyzing and forecasting so we can act faster); Vlad Ivanov is looking for cheaper ways to build it (and found almost 20% savings or more), so hopefully we can build 10 not 8 restaurants this year; Sergey Gavrilik is building cheaper and better (I know we need to closed all gaps on NSO 2014 – however let me be clear here: if we thought we will build 26 restaurants without any hiccups we were dreaming… Sergey, you need to close all gaps from last year, so Operations can spend more time with Customers); Sasha and whole marketing team is doing fantastic job of driving great initiatives i.e. CRM, which is one of major drivers of outperforming market with Pizza Hut results – cannot wait to be fully running in KFC to see whole impact of it. Andris Dragunas and RPN project team is running “RPN project” – to making sure we comply with all local regulations. I am sure I did not list all the people here, however my point is not just to appreciate individual work, but teamwork. We work in committees, using projects methodology (ACs are gaining maturity), clear KPI’s, Passion and Discipline without which going through crisis would be much harder.

For me 1^st Trimester was really WJM: driving SSS in both brands (and SST), over delivering on our margins (1.5pp) and company EBITDA (in Rub) by 20 million, opening 4 restaurants…

hearing AmRest investors last week during a conference: “how is this possible that Russia kept their margins from last year in such situation” when the whole market is falling so quickly.

This is past, but important is to reflect, recognize (we will chose BE Trimester 1 winner in few days), take learnings and mover quickly forward….

Our BHAG of 1 billion USD business in Russia today may look unrealistic, however crisis may bring unexpected opportunities and we have to be ready. This can be achieved only by multi -branded platform (not just KFC and Pizza Hut). We need to continue to build more leaders and improve our margins, so we will be ready for next steps soon…

Next 3-5 years will revolutionize the way we “communicate” with our Customers and I want to make sure we are leading this way in restaurant industry. CRM / apps is just the beginning, there is more to come, a lot still unknown – we need to develop or hire this competency, so we do not miss that opportunity. This will definitely be one of major focus in our 3-year agenda.

Our review status of our 2015 goals:

We are in good shape in terms of goals and I am really excited about Customer goal and all initiatives we are running to enhance Customers experience: CRM in both brands, new steps of service. This will differentiate us from any competition and move Customer experience to new dimension! Please welcome Igor Zhakov from KFC Volgogradsky who is the 1^st certified cashier in our Secret Service Team! Congratulation, Igor!

Our financial goal became challenging when we decided to slow down our growth from 15 to 8 (maybe 10 restaurants), however continue of outstanding performance of core business and improvement of NSO restaurants will get us there.

We have 8 months to go and these months will be even more demanding and challenging (from AOP perspective) than first trimester. We must outperform whole market, so we can secure more capital for further development. There is a lot of “competition” internally in AmRest i.e. CE or Spanish division, which had their best results ever and will break record of new openings. This is part of my job, securing capital so we can develop people and restaurants.

My big “3” focus areas do not change. I do expect it form all of You:

1) Developing yourself

2) Developing other people (read: new leaders)

3) Delivering results (performance management)

See you soon in your restaurants,

Jacek Trybuchowski

Division President of AmRest Russia

Дата добавления: 2015-09-29