Corporate Social Responsibility Report 2015 1
COMMUNITY AND SUSTAINABILITY Our vision is to be the leading operator of enduring and innovative QSR brands in New Zealand. Underpinning that is a commitment to doing business guided by principles of sustainability and good corporate citizenship. These principles help shape our menus and our stores, our management practices and the way we contribute to the communities we serve. At the core of Restaurant Brands social responsibility ethos are four interdependent elements: People, Food, Planet and Progress. We re proud of the advances we continue to make in these areas, in line with our culture of innovation and our drive to constantly raise the bar in everything we do. 2
PEOPLE Our company depends on the support of Kiwi consumers, and on positive partnerships with employees, suppliers, franchisees and investors. In turn we make a strong economic contribution to our local communities, and support a range of non-profit and community organisations. 3
OUR EMPLOYEES NEARLY 4000 STAFF NATIONWIDE. SERVING OVER 70,000 CUSTOMERS A DAY. Our employees are at the heart of our business, and critical to its success. We re committed to being a responsible and fair employer, offering: + + Guaranteed minimum hours of work: we have a consistent framework around working hours that improves the certainty of work availability and allows for the Company and our employees to plan ahead. + + Competitive remuneration to attract and retain skilled employees: we regularly refresh our remuneration model using market data to ensure market parity for employees across the business, and are proud to offer above market rates. Our waged employees have the opportunity to increase their rate of pay through a pay for skill system and are given regular opportunity to move through pay rates. + + Our employees are supported with the time and resources to up-skill: e-learning is now in place across the KFC and Pizza Hut businesses and class-room style group orientation has proven popular for new recruits to Carl s Jr. + + We are committed to supporting a diverse and inclusive work environment: with 26 different nationalities represented across the business and over half our workforce, including senior management, being female, we are committed to driving the diversity agenda on many levels. 4
SAFE, HEALTHY WORKPLACES The health and safety of our employees and customers is our top priority. We have an excellent record for workplace health and safety. + + Lost workdays from injury were down 54% in the 2014-15 year + + Workplace lost time incidents were down 59% in the 2014-15 year + + Our target: zero loss of workdays from injury across all our brands All employees working in our stores must complete Health and Safety and Food Safety (Unit Standard 167) training, and demonstrate ongoing competency. We re a tertiary level member of ACC s Accredited Employers Programme, and a member of the Business Leaders Health and Safety Forum. TRAINING AND DEVELOPMENT One of our company s strengths is the way we develop our people and their skills at every level. We ve trained thousands of new employees from basic food handling skills to restaurant manager level and beyond. Our focus is on developing the people we have and reducing staff turnover, by: + + Investing in our people through training and education programmes across all our brands + + Identifying talented employees and providing clear paths for their career development + + Constantly updating our employee training and education programmes + + Rolling out an e-learning programme for a large proportion of our staff EQUALITY AND DIVERSITY Restaurant Brands is an equal opportunity employer and we embrace and reflect the diversity of the communities we operate in. + + Our staff range in age from 16 to 70 + + The average age of our employees is 23 + + For many people, we provide that valuable first job + + Our workforce is 53% female, including a significant proportion of senior management 5
GIVING BACK TO OUR COMMUNITIES We re proud of the contribution we make to our local areas, delivering important economic benefits and supporting a range of community and charitable organisations. ECONOMIC CONTRIBUTION Our business operations make a significant contribution to the communities we serve, through jobs, wages and salaries, tax payments, dividends, goods and services purchased and investment in existing and new stores. SURF LIFE SAVING NEW ZEALAND LIMITED KFC has been a charity partner of Surf Life Saving New Zealand since 2012. As well as raising funds, KFC helps run a multi-lingual water safety education campaign, showing Kiwis how to stay safe at the beach. + + $166,802 raised for Surf Life Saving in the 2014-15 year + + $1 donated from every KFC Surf Safe Bucket sold in October and November 2014 WORLD HUNGER RELIEF Restaurant Brands supports Yum! Brands annual World Hunger Relief effort, one of the world s largest private sector hunger relief initiatives. + + Funds raised by KFC, Pizza Hut and Taco Bell stores globally + + 41,000 stores participating across 125 countries + + $52,000 raised in New Zealand in 2014 NZPWG ANITA BOON PRO-AM KFC has been a major sponsor since 2011 of the annual Anita Boon Pro-Am tournament, the first all-women s pro-am event in New Zealand. The 2014 event was cosanctioned by the New Zealand Professional Women Golfers trust and the Australian Ladies Professional Golf tour, with the aim to inspire more young women golfers to follow in the footsteps of Lydia Ko. FOUNDATION FOR YOUTH DEVELOPMENT The Foundation for Youth Development offers communitybased youth mentoring programmes that help kids transition to secondary school. Its STARS programme is designed to help young people build positive relationships with peers, teachers and older students and to learn life skills, confidence and resilience. + + Carl s Jr. donates 10 cents from every Super Star with Cheese burger to the Foundation + + $15,000 raised for the STARS programme in the 2014-15 year 6
FOOD Restaurant Brands serves high quality, great tasting food with seasonally and locally sourced ingredients, and we continue to raise our own bar for nutrition and sustainability. 7
WELLBEING We recognise that obesity and heart disease are serious health issues in New Zealand. Both the causes and the solutions are complex, requiring everyone to play their part. We continue to focus on improving the nutritional composition of our food, with an emphasis on sodium, sugar and saturated fat reduction. SODIUM TRANSPARENCY We provide detailed nutritional information on our websites, letting customers know exactly what s in our food so they can choose products that are right for them. In addition, we take a responsible approach to marketing. We don t advertise or market our products directly to children, and promote only carbonated sugar-free beverages. + + 20% reduction in sodium in KFC mayonnaise since 2012 + + 45% reduction in sodium in KFC BBQ sauce since 2007 + + 10% reduction of sodium across all KFC products since 2010 + + 80% overall reduction in sodium in Carl s Jr. fries in 2014 + + 10-25% reduction in sodium in Carl s Jr. burger buns in 2014 + + 18-31% reduction in sodium in Carl s Jr. chicken fillets and tenders since 2012 + + 7-82% reduction in sodium across all Carl s Jr. sauces since 2012 SUGAR + + Sugar content in buns and rolls now 3% + + Sugar reduced by 50% in KFC buns and 65% in dinner rolls since 2012 FAT + + Less than 0.1g of trans fat in KFC and Pizza Hut products 8
INGREDIENTS We support trusted local suppliers and responsible industry practices in line with our ethical purchasing and procurement policies. + + 90% of our ingredients are sourced locally. This year we ve brought most of our ingredient sourcing for our new Carl s Jr. brand to domestic supply + + 100% of our chicken is grain-fed and barn-raised, including KFC s fresh daily supply from Inghams and Tegel. All our chicken is produced to rigorous standards overseen by the Poultry Industry Association New Zealand, the Ministry for Primary Industries and the National Animal Welfare Committee FOOD SAFETY From our trusted suppliers through our kitchens and onto your plate, our food safety system and external audits deliver great-tasting food you can trust. + + All KFC, Pizza Hut and Carl s Jr. stores are routinely audited by Environmental Health Officers to the standard of the Ministry of Primary industries + + Annual audits of all 26 Starbucks stores by Assure Quality using a tailored Starbucks food safety plan + + Starbucks coffee is sourced in accordance with its CAFE (Coffee and Farmer Equity) Practices programme. CAFE is designed to sustain the environmentally and socially responsible production of high-quality coffee and secure a better future for coffee farmers 9
PLANET We re conscious of the impact our operations have on the environment. Restaurant Brands is always working to minimise waste, maximise energy efficiency and use resources carefully. 10
Such items are classified as non-trading items and are separately disclosed in the statements of comprehensive income and notes to the financial statements. The Group seeks to present a measure of comparable underlying performance on a consistent basis. In order to do so, the Group separately discloses items considered to be unrelated to the day to day operational performance of the Group. (z) Non-trading items that contract. present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognises any impairment loss on the assets associated with RECYCLING Restaurant Brands is a member of the Public Place Recycling Scheme (PPRS) and is represented on the Steering Committee. PPRS is a voluntary product stewardship programme that helps New Zealanders do the right thing by recycling and reducing litter including plastic, paper, aluminium, glass and organic waste when they re away from home. The scheme received accreditation from the Minister for the Environment in November 2014. + + All our stores sort, compact and collect cardboard and paper for recycling + + 80% of cardboard and paper from our stores is recycled each week PACKAGING We are working to replace plastic bags with recycled paper bags across all our stores. We source all packaging from sustainable timbers grown locally and overseas. + + 70% of our packaging is locally sourced + + All Pizza Hut boxes are made from 100% recycled fibre and are 100% recyclable + + KFC s recyclable packaging is sourced from sustainable timber + + None of our packaging is sourced from Asian pulp and paper + + Starbucks stores recycle coffee grounds by packaging them for customers to take home as free garden compost ENERGY USE WASTE One of our major waste products is cooking oil. All oil used by KFC, Pizza Hut and Carl s Jr. is collected by Transpacific for recycling. Grease traps are installed in all our stores to prevent oil entering the waste water system. + + 100% of our cooking oil is recycled + + 20% is used in the manufacture of Transpacific bio-diesel and green fuels + + 80% is exported to make soap Yum! Brands has set up a world-class operations team to work on energy efficiency opportunities. We in New Zealand benefit from these advances and actively participate in Yum! energy saving initiatives. + + We re always looking to reduce our energy footprint through the way we work, the technology we use and the buildings we develop + + Since 2005 we ve monitored live power usage in our KFC stores to reduce peak load, and encourage employees to turn off equipment when not in use. Further improvements to this system are underway + + We have an in-house system to compare KFC stores sales to their power usage, highlighting any potential inefficiencies in energy use 11
PROGRESS Restaurant Brands is the NZXlisted New Zealand operator of some of the world s most famous QSR brands. We continue to proactively and fairly reward our stakeholders. 12
181 stores throughout the country $230 million in goods and services $22.5 million net earnings (excluding non-trading items) $9.2 million in income tax and $19.3 million in GST payments $17.1 million in dividend payments $95 million in salaries and wages $28.2 million capital expenditure with local suppliers and contractors KFC TRANSFORMATION PROGRAMME + + $80m invested since 2004 including new store builds + + 91% of the KFC store network now new or transformed + + 11 new stores built since 2004 for a total investment of $14m + + 1 new store built in 2014-15 year + + 9 stores transformed or upgraded in 2014-15 year + + 40 jobs created per new store CARL S JR. INVESTMENT PROGRAMME + + $17m invested in new stores + + 11 new stores built since 2012 + + 3 new stores built in 2014-15 year GROWING PIZZA HUT FRANCHISEE COMMUNITY + + 44 Pizza Hut stores now owned by local franchisees + + 1 Pizza Hut store relocated in Gisborne in 2014 13
www.restaurantbrands.co.nz 14