The Company was established on December 16, 1987 based on Deed of Establishment no. 132 dated December 16, 1987, drawn up before Lieke Lianadevi Tukgali, S.H., Notary in Jakarta, which has been approved by the Minister Justice Rights based on its Decision Letter no. C2-4573.HT.01.01-TH.88 dated 25 May 1988, and has been registered in the register book of the Central Jakarta District Court under No. 1. 1979/1988 dated September 1, 1988, and has been published in the State Gazette of the Republic of Indonesia No. 102 dated December 20, 1988, Supplement No. 1388.
Pizza Hut is an international chained restaurant and franchise from the USA, which was established in 1958 by Dan Carney and Frank Carney. Pizza Hut is famous for its Italian-American menu, including pizza and pasta, and other menus. Pizza Hut has more than 16,000 outlets in more than 100 countries.
As the franchisee in Indonesia, the Company owns the right to develop and operate Pizza Hut restaurants across Indonesia based on the international franchise agreement with Pizza Hut Restaurants Asia Ltd. At present, with the exception of the outlet at the airport, the Company is the master franchisee of Pizza Hut in Indonesia. The Company has successfully received the Asia Franchisee of the Year award from YUM! Pizza Hut Asia for the year 2007, 2008, 2009, 2011, 2012, 2013 and 2017.
The Company was established in 1987 and is engaging businesses in a consumer foodservice industry, particularly pizza and pasta in Indonesia through the franchise owned by the Company. After developed the Pizza Hut brand in Indonesia for two decades, the Company was acquired by Sriboga Group in 2004, and since the acquisition, the growth of the Company’s outlets was rapidly increase. The Company has been supported by Sriboga Group with various support and guidance from SRR or other company in Sriboga group. Based on the Euromonitor's Report, in 2016 the Company was the largest pizza chain and, with a market share of 86.6%, with PHR holding a 97.0% market share and PHD holding a 64.6% market share. As of December 31, 2017, the Company operated 237 PHR outlets and 156 PHD outlets located in 28 provinces in Indonesia. In addition on February 2018, the Company owns 397 combined PHR and PHD outlets. The Company's restaurants and outlets offer a wide range of high quality pizza and complementary menus to its customers.
The Company offers innovative and extensive menus that cater Indonesian consumers, targeting middle-class teenagers and families. The Company is popularly known for its original pan pizza and its iconic cheesy bites menu. The Company as developed two different concepts, namely the PHR and PHD outlets. The Company offers dine-in service, delivery service, and online sales with extensive network. The Company believes that its current sales concepts and channels will provide flexibility for sustainable growth. Therefore, the Company continues to create innovations in its menu selection by adapting the menu according to the palate of Indonesian people, and to improve its services to customers.
The Company recognizes the importance of having a Halal Certificate for a foodservice company in a Muslim-majority country. In 1997, the Company obtained the halal certificate from MUI. Up to now, the Company continues to maintain its halal certification with the commitment to continuously provide halal products to provide convenience, security and satisfaction to consumers.
For the periods ended December 31, 2015, 2016, and 2017, the Company reported net sales of Rp2,493,741 million, Rp2,695,314 million and Rp3,026,007 million, respectively. During the same period, the Company successfully reported a net profit for the year of Rp61,377 million, Rp130,428 million and Rp141,324 million, respectively Sarimelati Kencana
Pizza Hut Organizational Values
The Company places the following 4 values as the foundation in managing the organization, and in building relationships with customers, business partners and shareholders.
Integrity
Integrity The Company maintains integrity in thoughts and deeds, and remains trustworthy, honorable and professional in all dealings with business partners, customers, and suppliers
Excellence
Excellence The Company performs its work beyond the call of duty, performs more than expected by others. The Company strives for improvement and is thorough in all matters. The Company performs its duties willingly and faces all challenges to achieve the highest standards
Organizational Growth
Business Growth The Company will develop and benefit by being the best ‘Casual Dining Restaurant.’ The Company strives to improve its competencies and knowledge by sharing skills and learning together with its business partners to allow the Company to grow together, both at individual and organizational level
Profitability
Profit The Company gives its best effort to generate profit to shareholders through monitoring and improvement of sales. Sarimelati Kencana PZZA
BUSINESS ETHICS
The Company strives to improve the quality of GCG best practices implementation in a consistent and sustainable manner as a response to the changing business environment and to achieve sustainable business growth.
The Company developed structures and governance based on the GCG principles in accordance with prevailing laws and regulations and the Company’s best practices. The Company consistently implements the GCG principles of transparency, accountability, responsibility, independence and fairness, as described below:
- Transparency is applied in the decision-making process and disclosures of material and relevant information about the Company. The Company continuously provides correct, accurate and timely information to all stakeholders. The Company believes that it has properly and appropriately implemented the principle of transparency to avoid any conflict of interest among concerned parties. The publication of financial information has proven significant effects to the Company’s performance.
- Accountability refers to the clarity of function, implementation and accountability of each organ to allow effective management of the Company. All of the Company’s governance organs are based on the accountability principle with clear and systematic function, structure, and accountability. It is demonstrated in the management of the Company, which segregates duties and responsibilities, and clearly defines the functions, rights, obligations and authorities of each governance organ.
- Responsibility refers to the compliance of business management with the laws and regulations and sound corporate principles. The Company’s responsibility is proven through compliance with prevailing regulations, such as tax payments, industrial relations, protection of all employees through the implementation of occupational health and safety, and protection of the environment through the Company’s sustainable Corporate Social Responsibility (CSR) programs.
- Independence refers to the management of the Company in a professional manner that is free of conflict of interest and any influence from any party whatsoever that run contrary to prevailing laws and regulations and sound corporate principles.
- Fairness refers to fairness and equality in fulfilling the rights of all shareholders based on sound corporate principles Sarimelati Kencana PZZA
PIZZA HUT RESTAURANT (PHR)
Pizza Hut Indonesia grew into 14 restaurants in the first five years. By 1994, the Company has successfully more than doubled its restaurants into 34 restaurants. When the Sriboga Group acquired the Company in 2004, the Company had a total of 84 PHR outlets, As of December 31, 2017, PHR's presence spread across more than 50 major cities in Indonesia with 236 outlets. In addition to malls, PHR outlets are also built in shophouses and in free-standing format. PHR endeavors to provide easy access to customers visiting the restaurants, preventing the need to walk far, complicated access and parking issues. PHR can be accessed by customers wishing to dine in, to order take away or, in certain PHR outlets, delivery service. In addition, customers are also able to order food and beverages from PHR using food online aggregators’ delivery services.
Pizza Hut is famous for its innovative fresh pizza menu, the pizza dough is made fresh daily at the restaurant, directly baked upon order and presented warm straight from the oven to the customers’ tables. In addition to offering high quality pizza, Pizza Hut Indonesia also offers other extensive menus with affordable prices. For price sensitive customers, Pizza Hut Indonesia offers the “Sensasi Delight” package, which offers packages with selections of pizza/pasta/rice, appetizer & beverages at affordable prices. For customers intending to sample other featured products, Pizza Hut also offers extensive ala care products and introduces new products on a regular basis.
Pizza Hut Indonesia positions itself as a casual dining restaurant, which provides comfortable & clean place to connect family and friends, and offers the best services under the “Sharing Together” concept. Pizza Hut Indonesia’s main target consumers are families, particularly those under the SEC B- to A category. As a pizza chain that has existed for 34 years, Pizza Hut’s brand image is very strong in Indonesia. This is proven by strong market share among pizza restaurant, which has reached 97.0% in 2016 based on Euromonitor Report. Sarimelati Kencana PZZA
PIZZA HUT DELIVERY (PHD)
Established in 2007, Pizza Hut Delivery (“PHD”) is the first restaurant in Indonesia focusing on delivery services. It answered the need for fast food delivery service amid the worsening traffic congestion and increasing number of women entering the workforce. By opening PHD, the Company proactively and defensively created a barrier for possible entry of competitors. PHD, which focuses on delivery, was designed to specifically capture a segment that has not been utilized to its maximum potential by dine-in restaurants.
At its onset, the delivery restaurant required a certain degree of acceptance by customers who were unaccustomed to the new delivery concept. During its first three years, PHD had only nine outlets. As customers became more accustomed to the concept and customer needs changed, PHD began to grow more aggressively. From 23 outlets in 2010, it successfully more than tripled its size within two years, reaching 76 outlets in 2012. It has since become the Company’s growth driver and as of December 31, 2017, PHD’s market share reported by Euromonitor registered 64.6%, with a total of 156 outlets.
PHD positions itself as the best interactive pizza delivery service, serving high-quality pizzas delivered hot from the oven and right on time. PHD’s target consumers are men and women ages 18-40 years old, particularly those under A to C+ category.
In support of the Trusted Delivery Service concept, PHD’s popular service guarantees to meet a customer’s order within 30 minutes, otherwise, customers will receive free pizza voucher. PHD continues to build its image as a modern delivery restaurant by providing fast and reliable services through website and mobile applications. Sarimelati Kencana PZZA