Yum Brands is combining the US and international divisions of KFC, Pizza Hut and Taco Bell.
The reorganisation will be effective January 2014 onwards. Beginning fiscal year 2014, the company will report results for KFC, Pizza Hut and Taco Bell.
Meanwhile, its China and India units will be kept separate. The decision to keep the two countries’ units separate was due to their “strategic importance and enormous growth potential,” the company said in a statement.
Yum Brands will be providing financial reporting by global division: KFC, Pizza Hut and Taco Bell, as well as for Yum! Restaurants China and Yum! Restaurants India.
“We believe that having 100% focused brand teams will enable us to more aggressively accelerate growth,” chief executive David Novak said.
Meanwhile, there has also been a leadership restructure. Rick Carucci, who played a major role in developing the new organisational strategy and resulting structure, will retire as Yum Brands’ president in March 2014.
Under the restructure, Sam Su, Yum Brands vice chairman and chairman and CEO of Yum Restaurants China; Micky Pant, CEO of KFC; Scott Bergren, CEO of Pizza Hut; Greg Creed, CEO of Taco Bell; and Niren Chaudhary, president of Yum Restaurants India will be reporting to Novak.
Also reporting to Novak are the Yum corporate functional leaders of finance, operations, human resources, public affairs and legal.
When reached, vice president and chief marketing officer, Yum Brands Asia FBU, Vipul Chawla declined to comment on how this would affect operations in Asia, as well as its marketing divisions.
Sources have told Marketing that the restructure will have little effect on agency relationships in Asia.