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The TasTes of happiness

annual report 2009

The TasTes of happiness

the cover of this year's annual report is about the basics, a reminder of those special ingredients that keep people coming back to us even in hard economic times. at QSr Brands, we help bring people closer together, wherever they are and whenever they choose. We believe in treating each customer, young and old, with an abundance of choice, great service and mouthwatering meals. and it is these ingredients that enable us to create the tastes of happiness for everyone to savour and enjoy.

qSR BRandS Bhd annual RepoRt 2009


shareholders' overview

Financial HigHligHts 002 notice oF annual general Meeting 004 notice oF DiviDenD entitleMent 007 stateMent accoMpanying notice oF annual general Meeting 009

our performance in 2009

corporate stateMent 012 review oF operations 022

reliable corporaTe ciTizen

corporate social responsibility 036

The corporaTion

boarD oF Directors 044 top ManageMent coMMittee 057 HeaD oF Division 058 sHariaH aDvisory council 061 corporate inForMation 064 group structure 066


corporate governance stateMent 070 auDit coMMittee report 083 stateMent on internal control 086 aDDitional coMpliance inForMation 089

financial sTaTemenTs

Directors' report 098 balance sHeets 102 incoMe stateMents 103 stateMents oF cHanges in equity 104 casH Flow stateMents 106 notes to tHe Financial stateMents 108 stateMent by Directors 158 statutory Declaration 158 inDepenDent auDitors' report 159 analysis oF sHareHolDings 161 analysis oF warrant HolDings 163 list oF properties HelD 165 ForM oF proxy


qSR BRandS Bhd annual RepoRt 2009

financial highlighTs

2005 RM'000 Revenue pizza Hut Malaysia pizza Hut Singapore KFC Cambodia KFC Group Total profit Before tax total assets Shareholders' equity Gross Dividend per share (Sen) Share price as at 31 December (rM) nO. OF ReSTAuRAnTS pizza Hut Malaysia pizza Hut Singapore KFC Cambodia KFC Malaysia KFC Singapore KFC Brunei Kedai ayamas rasaMas Malaysia rasaMas Brunei

2006 RM'000

2007 RM'000

2008 RM'000

2009 RM'000

240,533 145,613 ­ ­ 386,146 19,480 592,458 377,530 7 3.20

267,892 160,651 ­ ­ 428,543 65,832 699,511 425,880 9 3.36

301,015 165,364 ­ ­ 466,379 80,186 801,772 476,517 9 3.20

351,719 176,169 4,864 ­ 532,752 97,739 903,097 633,682 11 2.43

369,778 165,990 9,009 2,215,508 2,760,285 230,261 2,092,791 687,144 13 3.31

135 37 ­ 343 68 7 35 14 ­ 639

151 38 ­ 368 68 7 19 15 ­ 666

168 40 ­ 403 69 7 20 22 ­ 729

187 45 2 436 73 8 25 34 2 812

208 50 7 475 77 9 35 40 3 904

592,458 386,146

Revenue (rM'000)

699,511 428,543

total aSSetS (rM'000)

801,772 466,379

903,097 532,752







pRofit BefoRe tax (rM'000)



ShaReholdeRS' equity (rM'000)






qSR BRandS Bhd annual RepoRt 2009


qSR BRandS Bhd annual RepoRt 2009

noTice of annual general meeTing

NOTICE IS HEREBY GIVEN that the 7th Annual General Meeting of QSR Brands Bhd will be held at Level 3, Wisma KFC, No 17 Jalan Sultan Ismail, 50250 Kuala Lumpur on Thursday, 29 April 2010 at 3:30 p.m. for the following purposes :

aGenda 1 to receive and adopt the audited Financial Statements of the Company for the year ended 31 December 2009 and the reports of the Directors and auditors thereon. ReSOluTiOn 1 2 to approve the payment of a final dividend of 9 sen less 25% Malaysian income tax per share. ReSOluTiOn 2 to approve the payment of Directors' fees in respect of the financial year ended 31 December 2009. ReSOluTiOn 3 a to re-elect the following Directors retiring pursuant to article 89 of the Company's articles of association : i ii Dato' Dr ridzuan Bin Mohd akil ReSOluTiOn 4 YaM Dato' Seri Syed amir abidin Jamalullail Ibni almarhum tuanku Syed putra Jamalullail ReSOluTiOn 5




to re-elect the following Director retiring pursuant to article 96 of the Company's articles of association : i Datin paduka Siti Sa'diah binti Sheikh Bakir ReSOluTiOn 6


to re-appoint Messrs KpMG as auditors of the Company and to authorize the Directors to fix their remuneration. ReSOluTiOn 7 as special business : to consider and, if thought fit, to pass the following resolutions : a Ordinary Resolution Authority to allot and issue shares pursuant to Section 132D of the Companies Act 1965 (the "Act") "tHat subject always to the act, articles of association of the Company and approvals from the Bursa Malaysia Securities Berhad and other governmental or regulatory authorities, where such approvals shall be necessary, full authority be and is hereby given to the Directors pursuant to Section 132D of the act from time to time to issue and allot ordinary shares from the unissued share capital of the Company upon such terms and conditions and at such times as may be determined by the Directors of the Company to be in the interest of the Company provided always that the aggregate number of shares to be issued pursuant to this resolution shall not exceed 10 percent of the issued share capital for the time being of the Company." ReSOluTiOn 8



qSR BRandS Bhd annual RepoRt 2009


Ordinary Resolution Proposed Renewal of Share Buy-Back Authority "tHat subject to the Companies act 1965 (the "act"), rules, regulations and orders made pursuant to the act, provisions of the Company's Memorandum and articles of association and the listing requirements of Bursa Malaysia Securities Berhad ("Bursa Securities") and any other relevant authorities, the Company be and is hereby authorized to purchase and/ or hold such amount of ordinary shares of rM1.00 each in the Company's issued and paid-up share capital ("proposed Share Buy-Back authority") through Bursa Securities upon such terms and conditions as the Directors may deem fit in the interest of the Company provided that a the aggregate number of shares so purchased and/or held pursuant to this ordinary resolution ("purchased Shares") does not exceed ten percent (10%) of the total issued and paid-up share capital of the Company at any one time; and the maximum amount of funds to be allocated for the purchased Shares shall not exceed the aggregate of the retained profits and/or share premium of the Company." "anD tHat the Directors be and are hereby authorized to decide at their discretion either to retain the purchased Shares as treasury shares (as defined in Section 67a of the act) and/or cancel the purchased Shares and/or to retain the purchased Shares as treasury shares for distribution as share dividends to the shareholders of the Company and/or be resold through Bursa Securities in accordance with the relevant rules of Bursa Securities and/or cancelled subsequently and/or to retain part of the purchased Shares as treasury shares and/or cancel the remainder and to deal with purchased Shares in such other manner as may be permitted by the act, rules, regulations, guidelines, requirements and/or orders of Bursa Securities and any other relevant authorities for the time being in force." "anD tHat the Directors be and are hereby empowered to do all acts and things (including the opening and maintaining of a central depositories account(s) under the Securities Industry (Central Depositories) act, 1991) and to take such steps and to enter into and execute all commitments, transactions, deeds, agreements, arrangements, undertakings, indemnities, transfers, assignments, and/or guarantees as they may deem fit, necessary, expedient and/or appropriate in the best interest of the Company in order to implement, finalise and give full effect to the proposed Share Buy-Back authority with full powers to assent to any conditions, modifications, variations (if any) as may be imposed by the relevant authorities." "anD FurtHer tHat the authority conferred by this ordinary resolution shall be effective immediately upon passing of this ordinary resolution and shall continue in force until the conclusion of the next annual General Meeting ("aGM") of the Company or the expiry of the period within which the next aGM of the Company is required by law to be held (whichever is earlier), unless earlier revoked or varied by ordinary resolution of the shareholders of the Company in general meeting, but shall not prejudice the completion of purchase(s) by the Company before that aforesaid expiry date and in any event in accordance with provisions of the listing requirements and other relevant authorities." ReSOluTiOn 9



qSR BRandS Bhd annual RepoRt 2009

noTice of annual general meeTing


Ordinary Resolution Proposed Renewal of existing Shareholders' Mandate and additional mandate for QSR Brands Bhd ("QSR") and its subsidiaries ("QSR Group") to enter into Recurrent Related Party Transactions of a Revenue or Trading nature with Related Parties ("Proposed Shareholders' Mandate") "tHat authority be and is hereby given in line with paragraph 10.09 of the listing requirements of the Bursa Malaysia Securities Berhad ("Bursa Securities"), for the Company, its subsidiaries or any of them to enter into any of the transactions falling within the types of the recurrent related party transaction, particulars of which are set out in the Circular to Shareholders dated 6 april 2010 with the related parties as described therein, provided that such transactions are of revenue and/or trading nature, which are necessary for the day-to-day operations of the Company and/or its subsidiaries, within the ordinary course of business of the Company and/or its subsidiaries, made on an arm's length basis and on normal commercial terms which those generally available to the public and are not detrimental to the minority shareholders of the Company; anD tHat such authority shall commence immediately upon the passing of this ordinary resolution until : i the conclusion of the next annual General Meeting ("aGM") of the Company following the general meeting at which the ordinary resolution for the proposed Shareholders' Mandate for the recurrent related party transactions is passed, at which time it shall lapse, unless the authority is renewed by a resolution passed at the next aGM; or the expiration of the period within which the next aGM after the date it is required by law to be held; or revoked or varied by ordinary resolution passed by the shareholders of the Company at a general meeting of the Company, whichever is earlier. anD FurtHer tHat the Directors of the Company be authorized to complete and do all such acts and things (including executing all such documents as may be required) as they may consider expedient or necessary to give effect to the proposed Shareholders' Mandate." ReSOluTiOn 10

ii iii


to transact any other ordinary business of which due notice shall have been given.


qSR BRandS Bhd annual RepoRt 2009

noTice of dividend enTiTlemenT

NOTICE IS ALSO HEREBY GIVEN that the final dividend of 9 sen less 25% Malaysian income tax per share will be paid on 27 May 2010 to depositors who are registered in the Record of Depositors at the close of business on 6 May 2010 if approved by members at the 7th Annual General Meeting on 29 April 2010.

a Depositor shall qualify for entitlement only in respect of : a b Shares transferred into the Depositor's Securities account before 4.00 pm on 6 May 2010 in respect of the ordinary transfers; and Shares bought on the Bursa Malaysia Securities Berhad ("Bursa Securities") on a cum entitlement basis according to the rules of the Bursa Securities.

BY orDer oF tHe BoarD

Mohd ZaM Bin MuStaMan (lS 0009020) idhaM Jihadi Bin aBu BaKaR, aCiS (MaICSa 7007381) Company Secretaries Kuala lumpur 6 april 2010

noteS : 1 a member of the Company entitled to attend and vote at the above annual General Meeting ("aGM") may appoint a proxy to attend and vote in his stead. a proxy may but need not be a member of the Company. If the proxy is not a member of the Company, the proxy shall be an advocate or an approved company auditor or person approved by the Companies Commission of Malaysia. If the member is a corporation, the proxy Form must be executed under its common seal or the hand of its duly authorized officer or attorney. If the proxy Form is signed under the hand of an officer duly authorized, it should be accompanied by a statement reading "signed as authorized officer under an authorisation Document which is still in force, no notice of revocation having been received". If the proxy Form is signed under the attorney duly appointed under a power of attorney, it should be accompanied by a statement reading "signed under a power of attorney which is still in force, no notice of revocation having been received". a copy of the authorisation Document or the power of attorney, which should be valid in accordance with the laws of the jurisdiction in which it was created and is exercised, should be enclosed with the proxy Form. a member of the Company may appoint more than two (2) proxies to attend the aGM. Where a member of the Company appoints two or more proxies, the appointment shall be invalid unless the member specifies the proportion of his shareholdings to be represented by each proxy. any alteration made in this form should be initialed by the person who signs it. the proxy Form and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of that power of authority must be deposited at tricor Investor Services Sdn Bhd, level 17, the Gardens north tower, Mid Valley City, lingkaran Syed putra, 59200 Kuala lumpur not less than forty-eight (48) hours before the time for holding the meeting or any adjournment thereof.


3 4 5


qSR BRandS Bhd annual RepoRt 2009

noTice of dividend enTiTlemenT

explanatoRy noteS on SpeCial BuSineSS 1 Resolution Pursuant to Section 132D of the Companies Act 1965 the ordinary resolution proposed under item 6(a), if passed, will give the Directors of the Company, from the date of the above General Meeting, authority to issue and allot ordinary shares from the unissued share capital of the Company being for such purposes as the Directors consider would be in the interest of the Company. this authority will, unless revoked or varied at a General Meeting, expire at the conclusion of the next annual General Meeting ("aGM") of the Company. the Company had, at the 6th annual General Meeting held on 30 april 2009, obtained its shareholders' approval for the general mandate for issuance of shares pursuant to Section 132D of the Companies act, 1965 ("the act"). the Company did not issue any new shares pursuant to this mandate obtained as at the date of this notice. the ordinary resolution 8 proposed under item 6(a) of the agenda is a renewal of the general mandate for issuance of shares by the Company under Section 132D of the act. at this juncture, there is no decision to issue new shares. If there should be a decision to issue new shares after the general mandate is obtained, the Company will make an announcement in respect of the purpose and utilisation of proceeds arising from such issue. 2 Resolution pursuant to the Proposed Renewal of Share Buy-Back Authority this resolution proposed under item 6(b) will empower the Directors of the Company to purchase the Company's shares up to ten percent (10%) of the issued and paid-up share capital of the Company by utilizing the funds allocated which shall not exceed the total retained earnings and share premium of the Company. this authority will, unless revoked or varied at a General Meeting, expire at the conclusion of the next annual General Meeting of the Company. Further information on the proposed renewal of the Share Buy-Back authority are set out in the Circular to Shareholders of the Company which is dispatched together with the Company's annual report for the year ended 2009. 3 Resolution pursuant to the Proposed Shareholders' Mandate this resolution proposed under item 6(c) will enable QSr Group to enter into any recurrent transactions of a revenue or trading nature which are necessary for the QSr Group's day-to-day operations, subject to the transactions being in the ordinary course of business, made at arm's length and on normal commercial terms and are not to the detriment of the minority shareholders of the Company. Further information on the proposed Shareholders' Mandate are set out in the Circular to Shareholders of the Company which is dispatched together with the Company's annual report for the year ended 2009.


qSR BRandS Bhd annual RepoRt 2009

sTaTemenT accompanying noTice of annual general meeTing


diReCtoRS Who aRe StandinG foR Re-eleCtion at the annual GeneRal MeetinG a the Directors retiring by rotation pursuant to article 89 of the articles of association are : i ii b Dato' Dr ridzuan Bin Mohd akil YaM Dato' Seri Syed amir abidin Jamalullail Ibni almarhum tuanku Syed putra Jamalullail

the Director retiring by rotation pursuant to article 96 of the articles of association is : i Datin paduka Siti Sa'diah binti Sheikh Bakir

the details of the directors seeking re-election are set out in the Directors' profiles which appear on pages 044 to 054 of the annual report. 2 detailS of attendanCe at BoaRd MeetinGS held in the finanCial yeaR ended 31 deCeMBeR 2009 there were five (5) Board Meetings held during the financial year ended 31 December 2009 and the following are the details of the Board attendance :

naMe of diReCtoR no of MeetinGS attended

1 2 3 4 5 6 7 8 3

tan Sri Dato' Muhammad ali bin Hashim ahamad bin Mohamad Jamaludin bin Md ali Kua Hwee Sim Datin paduka Siti Sa'diah binti Sheikh Bakir (Appointed on 1 January 2010) Sheik Sharufuddin bin Sheik Mohd Dato' Dr ridzuan bin Mohd akil YaM Dato' Seri Syed amir abidin Jamalullail ibni almarhum tuanku Syed putra Jamalullail

5/5 4/5 5/5 5/5 ­ 5/5 5/5 5/5

the 7th annual GeneRal MeetinG Will Be held at level 3, WiSMa KfC, no 17 Jalan Sultan iSMail, 50250 Kuala luMpuR on thuRSday, 29 apRil 2010 at 3.30 p.M.

good Times, shared TogeTher

pizza Hut is about more than just great food. It's a place where people come to enjoy great food, to laugh and to share the good times together.


qSR BRandS Bhd annual RepoRt 2009

corporaTe sTaTemenT

felloW ShaReholdeRS

During these turbulent economic times we have remained faithful to the principles that have made us the region's largest restaurant chain, complemented by strategies such as new product development, restaurant expansion and cost saving initiatives. The outcome has proved encouraging, with the Group achieving record results once again. Our Group has proved its sustainability, endurance, and looking forward, its potential for even better results in the future. It gives us great pleasure to present the Corporate Statement of QSR Brands Bhd (QSR) for the financial year ended 31 December 2009.

fRoM RiGht to left TAn SRi DATO' MuhAMMAD Ali hAShiM CHaIrMan AhAMAD MOhAMMAD DeputY CHaIrMan JAMAluDin MD Ali ManaGInG DIreCtor


qSR BRandS Bhd annual RepoRt 2009

2009 economic Review the year under review began with the economies of most of our host nations accelerating into recession. What started as a subprime mortgage crisis in the uS quickly snowballed into what has now come to be known as a Global economic Crisis. trade slowed dramatically, while many jobs have been lost. regionally, many Governments instigated a raft of stimulus packages in order to turn the tide. thankfully, they appear to be working. In Malaysia, GDp growth for the year was recorded at -1.7%, as compared to a positive growth of 4.6% in 2008. But thanks to prudent economic decisions, the Malaysian economy recorded a growth of 4.5% in the fourth quarter of 2009. Sustained growth in private consumption and increased public sector spending contributed to higher domestic demand. Meanwhile, Malaysia's export performance benefited from improvements in external demand, particularly from regional economies, and from stronger commodity prices. Singapore also suffered economically during the year. overall, GDp growth for 2009 registered at -2%, from 2008's positive 1.4%. although overall GDp for the year registered a decline, Singapore's economy has been rebounding since the second quarter. the third quarter saw expansion in all sectors of the economy. Growth was pervasive among the manufacturing and services sectors, while the level of construction activities remained high. GDp forecasts for 2010 appear positive, coming in at between 4.5% and 6.5%. In Cambodia, the economy took a battering during 2009 with most of its key sectors negatively impacted. Country wide, more than 50,000 jobs were lost due to factory closures, while foreign direct investment also declined by more than 50% compared to 2008. overall, Cambodia registered GDp growth of -2.6%, a significant drop from the positive 6.7% growth in 2008. 2009 Financial highlights a winning combination of strategic management decisions, dedicated staff and the continued expansion of our restaurant network have resulted in another record year of revenue growth for QSr Group. In 2009, we recorded a revenue of rM2,760.3 million, representing an increase of 418.1% over 2008's rM532.8 million. revenue for the current year included that of KFCH, which became a subsidiary of QSr on 2 January 2009. on a comparative basis (i.e. excluding KFCH), QSr turned in a revenue of rM544.8 million representing an increase of 2.3% over that of prior year's rM532.8 million. the Group registered a profit before tax of rM230.3 million in 2009 against rM97.7 million achieved in prior year. profit before tax for the current year included that of KFCH group. on a comparative basis (i.e. excluding KFCH), QSr recorded a profit before tax of rM40.2 million, representing a marginal decline of 0.9% over that of prior year. earnings per share increased by 5.7% to 32.64 sen, from 30.88 sen in 2008. The key financial highlights for 2009 : · revenue at pizza Hut Malaysia grew by 5.1% to rM369.8 million from rM351.7 million in 2008. · izzaHutSingaporehadadifficultyear,resultinginareductioninrevenuetoRM166million, P against the rM176.2 million achieved in the previous financial year. · FC Restaurants segment registered a 5.8% revenue growth to RM1,723.7 million from K rM1,628.9 million in 2008. · FC Malaysia recorded a revenue of RM1,365.5 million, a notable increase on 2008's K rM1,284.4 million. · KFCSingaporeachievedrevenueofRM342.7million,fromRM330.8millionin2008. · ntegrated Poultry segment recorded an 8.8% revenue growth to RM484.1 million from I rM445 million in the previous year. · FCMarketingregistereda132%increaseinrevenuetoRM200millionasagainstRM86.3 K million in 2008.


qSR BRandS Bhd annual RepoRt 2009

corporaTe sTaTemenT

Strategic initiatives to enhance Performance the Group's continued growth in revenue and profitability was the result of a series of strategic initiatives : · · · · · · · · PizzaHutexpandeditsnetworkwith26newrestaurantsacrossMalaysiaandSingapore. Q SR expanded its KFC network with 49 new restaurants (net of closures) including five openings in Cambodia. K FC Malaysia showed its sensitivity to the nation's economic difficulties by introducing value products like Jom Jimat and the ultimate Value Box. O ur new Primary Processing Plant in Bandar Tenggara, Johor, had a successful maiden year, boosting capacity by more than 40%. K FCMarketinglaunchedahostofnewproductsincludingCrispyFriedTomYamChicken, BBQ Combo, Chicken Frankfurters and Chicken nuggets. It also introduced innovative marketing strategies such as ayamas Jimat and Sudut ayamas (Shop-in-Shop concept). KFC Marketing also acquired the rights to import pasta and olive oil products under the Divella of Italy brand. these new products are available for sale at retail stores across the nation. O urcateringarmwascorporatisedunderthebannerofKFCEventsSdnBhd.Thecompany provides onsite catering at corporate events of all sizes, as well as the selling of the Group's product and cash vouchers. KedaiAyamasandRasaMasopened16newestablishmentsacrossMalaysia.

Dividends Delivering returns for our shareholders despite the economic gloom is a fact we are proud of. our strong performance has enabled the Board of Directors to recommend a final dividend of nine sen less tax of 25% per ordinary share, bringing the total dividend for the financial year 2009 to 13 sen per ordinary share (comprising an interim dividend of four sen and a final dividend of nine sen). this represents a two sen increase over the total dividends paid per ordinary share for the financial year 2008. increasing Strength in Depth on 2 January 2009, QSr acquired a further 865,000 shares in KFCH, increasing the Group's total holding to 50.25%. this landmark move makes KFCH a subsidiary company, which in turn gives QSr majority control of the company. With this control, the management has the capability to plot the company's course from a position of operational stability. From a collective viewpoint, the knock-on effects of this strategic acquisition will be a streamlining of the Group's business activities leading to increased profits for the Group as a whole. pizza Hut Malaysia demonstrated its innovative streak with a new delivery feature to boost consumer convenience. on 29 September, we completed a nationwide launch of the Delivery Service with Wireless Credit/Debit Card payment Facility. this involves our delivery employees carrying portable credit card swipe machines with them on their rounds, allowing our customers to pay for their pizzas with a credit or debit card. We were recognised by the Malaysia Book of records as being the first pizza delivery service in the country to offer such service. another innovative, revenue-generating venture from pizza Hut Malaysia began operations in 2009. the venture is called the `Hot on Wheels' mobile kitchen, which travels across the country providing oven hot pizzas at outdoor functions and events. each `Hot on Wheels' mobile kitchen is manned by four staff and is equipped to prepare and cook up to 100 pizzas per hour. the results have been more than encouraging. So far, the two mobile kitchens in operation have delivered sales of over rM700,000.


qSR BRandS Bhd annual RepoRt 2009

pizza Hut strengthened many areas of its business through 2009. at the Dine-In level, the Value layer approach to product offerings continued. this is typified by the success of the Sensasi Delight promotion in Malaysia, which was so popular that four different launch waves were carried out through the year. another example is pizza Hut Singapore's `Hot Campaign' which promised hot delivery pizzas, every time. this was a great success when it launched in early 2009. Meanwhile, consumers were offered many great promotions with the convenience of a take-away option. Both KFC Malaysia and KFC Singapore held successful product launches and exciting promotions during 2009. In Malaysia, the new Jom Jimat value meal, which provided a full meal plus a drink, proved so popular that it is now a permanent item on the menu. In Singapore, the ultimate Value ltimate Box was equally popular and almost immediately rated as one of our best-sellers. Following the successful regionalisation of its east Malaysia operations, KFC Malaysia recently ast introduced the concept in the northern region, covering the states of perlis, Kedah, penang enang egional and perak. regional entities operate as decentralised units, empowered to drive performance of restaurants in respective regions. Some of the benefits derived from decentralisation and regionalisation include enhanced operational efficiency, better career advancement opportunities, cost controls advantages through faster decision making and healthy competition between various regional units, all of which are expected to improve profitability. In the likelihood that decentralisation proves viable for the northern region, it will eventually be applied to other orthern regions throughout Malaysia. the Group took a significant step in terms of international expansion when KFCH signed a he Memorandum of agreement with Yum! restaurants (India) pvt. ltd. to operate KFC restaurants td. in Mumbai and pune. operating in India will prove a challenge but with such a huge population we are confident of profitable success. the deal was signed at the World Halal Forum 2009, held in Kuala lumpur, in the presence of heads of states, industry leaders and academics. this strategic foothold in India is expected to spearhead our restaurant operations and other business investments and activities in India. From an immediate operational viewpoint, we intend to open 12 new restaurants in 2010. another revenue generating venture undertaken by the Group in 2009 was the corporatisation of KFC's catering division under the name of KFC events Sdn Bhd (KFC events). the company provides onsite catering at corporate events of all sizes, and has already served a host of big clients including telekom Malaysia, tenaga nasional and toyota Malaysia. KFC events has also streamlined a voucher sale initiative. KFC's highly prized product and cash vouchers are sold to clients who then commonly give them out to their own staff, customers or suppliers. not only does this bring cash into our business, it also provides us the opportunity of making loyal customers out of voucher holders who might otherwise not have visited our restaurants. the Group extended Johor Corporation's Intrapreneur scheme to the Integrated poultry Farming sector in order to help fulfil the growing requirement for birds from our subsidiary companies. 162 hectares of land were purchased in Sedenak, Johor, to fulfil a vision to construct 16 intrapreneur farms over the next two years. as of 31 December, seven intrapreneur farms were fully operational, each producing 50,000 birds in one cycle of production. When all farms are operational, the Group will be able to produce 1 million birds in one cycle of production.


qSR BRandS Bhd annual RepoRt 2009

corporaTe sTaTemenT

the Board and management are mindful of the need to fully develop the great wealth of human capital in the Group. to this end, approval by the Ministry of education and Higher learning was given for us to acquire paramount International College in January 2010. the College will serve as a seat of learning to help us strengthen our training and development programmes. employees will train in the disciplines of hospitality, culinary arts, restaurant management and Halal management studies, becoming professionals in their field of expertise. to kick-start the training programme, the Group has allocated rM1 million to fund employees who wish to pursue education in their areas of specialisation. on another positive note, the acquisition presents an opportunity to move into the growing education sector, resulting in a new revenue stream for KFCH. to further strengthen our business, KFC Marketing has launched a new strategic approach t to reach further into the Malaysian marketplace. It is called Sudut ayamas and involves the placement of chest freezers, which are fully stocked with ayamas products and other of the Group's products, into retail establishments all over Malaysia. the Sudut ayamas freezers are fully branded and are designed to grab the attention of consumers as they browse through the shops. our goal is to roll out 2,000 Sudut ayamas freezers across convenience stores, supermarkets and other retail establishments in rural and suburban areas. another KFC Marketing strategy launched in 2009 targets lower socio-economic sections another of Malaysian society. It is called Base of the pyramid (Bop), or `usahawan Bistari'. analysis revealed that these sections of the market were underserved but were willing to spend if they could perceive value. to fulfil such needs, we launched a new range of products called ayamas Jimat. the value-price product range of ayamas Jimat is made up of Further processed products including chicken balls, nuggets and frankfurters amongst others. `usahawan Bistari' creates new business opportunities and will increase the earning power of low-income earners in the community through selling of ayamas Jimat products directly from their homes. this empowerment of the less fortunate is an added bonus for the Group. usahawan Bistari Sdn Bhd, a subsidiary of KFCH, was incorporated to spearhead the marketing of ayamas Jimat. In the long term, the success of `usahawan Bistari' will lead to a strengthening of the ayamas brand and greater revenue for the Group, while helping the economic wellbeing of lower-income groups. to also better serve the community and give back to the nation, the Group collaborated with universities and colleges to give graduates the opportunity to pursue a career in business. the resulting venture under ayamazz Sdn Bhd allows graduates to manage a `roti Impit', or Hot Dog Stall stocked with ayamas products. During 2009, the `roti Impit' graduates have been learning the ropes in and around uitM campuses. upon completion of their training they will be able to take the `roti Impit' carts into public places all over the country. the Group can confirm the completion of two infrastructural projects which have boosted our production performance. First, region Food Industries Sdn Bhd (the sole supplier of various sauces and mayonnaise to pizza Hut and KFC restaurants in Malaysia and Singapore) upgraded the capacity of its mayonnaise production plant from 167Mt(metric tonnes)/month to 334Mt/month at a total cost of rM4.5 million. this move was necessary in the face of growing demand from pizza Hut, KFC and the open market. Second, ayamas Food Corporation Sdn Bhd upgraded the capacity of its plant B plant in Klang, which produces ayamas' Further processed products such as nuggets, frankfurters, and others - to meet growing demand from the Group's restaurant chains and the open market. the rM18.5 million upgrade which was completed in January 2010 increased the plant's capacity from 950Mt/month to 1500Mt/month.


qSR BRandS Bhd annual RepoRt 2009

Boosting Performance to ensure the interests of our shareholders are prioritised we are committed to enhancing our performance-driven corporate culture. one of the ways we achieve this is by organising a Group-wide consensus-building tool called `pedoman'. Conducted annually throughout the larger Group, `pedoman' acts as a platform for the leadership, management and staff to engage in open and transparent dialogue. this is critical to promote a dynamic corporate culture based on trust and mutual respect. `pedoman' is indeed a powerful tool for bonding and inculcation of common values critical to a fast-growing and ever-changing Group situation. During opendialogue sessions everyone is encouraged to share ideas, concerns, and kept fully abreast about past performances and future plans. as we experienced many of the same economic challenges as the previous year, the theme for pedoman 2009 was a continuation of 2008's `Business Jihad'. `Business Jihad' promotes ethical business values and serves to remind us that everything we do is done only through the continued support of the community. In a business sense, Jihad is a beacon that leads us to contribute to society, nature and the environment, by operating sensitively and responsibly, especially during these tough economic times. one of the ways QSr cuts through the layers of bureaucracy associated with large organisations is by implementing an array of Key performance Indicators (KpIs) throughout the Group. We connect KpI achievements to incentives, rewarding hardworking staff for consistent high performance, which in turn inspires them to maintain or even increase their output. this then motivates less industrious staff to redouble their efforts. KpIs have been especially relevant during the year's challenging economic climate. one crucial tool in achieving positive results at the restaurant level has been the use of our Balanced Score Card incentive scheme. When restaurant managers achieve an agreed level of sales while fulfilling other criteria such as restaurant cleanliness and accuracy of orders, they win points which can be converted into monetary rewards, thereby motivating managers to enhance their operational effectiveness. elsewhere, other Group KpIs are used to compare performance against organisational goals and to measure corporate achievement. In november 2009 we welcomed the Hari Mekar (an acronym for Mengejar Kecemerlangan Dalam Kualiti or the pursuit of excellence in Quality) event. Hari Mekar is an annual quality event aimed at driving performance within the Group. over the course of the event, staff held discussions on ways to increase sales, reduce costs, enhance profitability, improve efficiency and promote creativity. as well as being a discussion platform, Hari Mekar gives staff the chance to compete across three categories: Innovative Creative Circle (ICC), Cempaka (Suggestions and Ideas) and poster. participation in the Hari Mekar competitions continues on an upward trend since its inception in 2007. entries in the Cempaka category more than quadrupled from a modest six in 2007 to 28 participations in 2009. For ICC, it continues its steady progression from eight in 2007, to 11 in 2008 and now 15 in 2009. participation in the poster category showed a near tenfold increase from a modest 32 entries in 2007 to 312 in 2009. We are delighted to report that QSr was crowned overall champion for the third year in a row!


qSR BRandS Bhd annual RepoRt 2009

corporaTe sTaTemenT

the Group provides comprehensive training to staff wherever they operate. QSr focuses on developing people to the best of their ability, empowering and enriching their careers by giving them the support they need to succeed in this fast-paced industry. In 2009, the Group spent over rM8 million on human capital development initiatives. a clear example of the motivating effect this training has on our staff can be found in their dedication in helping the Group through one of the worst economic times of this generation. only through everyone pulling in the same direction have we been able to come out on the other side in good shape; lean and fighting fit for a new decade of success. improving Governance QSr is a firm believer in finding new ways to improve our culture of good corporate governance. our ongoing mission to become a more transparent, accountable and responsible corporate citizen is one of the reasons we are recognised a leader within our industry. to continue this track record, the Group's Human resources department carries out regular training initiatives to ensure that our people, from senior management right down to the front line service staff, approach their jobs with the integrity and ethical standards the Group stands for. A leader in Corporate Social Responsibility QSr strives to operate with responsibility, integrity and compassion in all areas of our activities. In doing so we aim to make a positive contribution to society while building confidence and goodwill of our stakeholders. to achieve this we adhere to a wide-ranging Corporate Social responsibility (CSr) programmes which focus on transparency of business and corporate responsibility practices. the Group's commitment to the promotion of Halal food and the Halal industry continued throughout 2009, within the company and in the community. representatives from the Group participated in MIHaS, or the Malaysian International Halal Showcase, which brings together key players from the Halal industry and the aSean food and beverage industry. We also sponsored the World Halal Forum, which saw heads of states, industry leaders and academics debate the major issues facing the Halal industry. pizza Hut Malaysia's promise to help the nation's children continued through the `newspaper in education' (nIe) programme. this sees us teamed up with the Star newspaper to improve reading, spelling and writing abilities among students. In 2009 the programme expanded to cover 380 schools across the country. another CSr initiative saw us carry out our nationwide charity pizza deliveries during Chinese new Year and ramadan. We delivered almost 5,000 pizzas to residents from 97 orphanages, old folks and charity homes all over Malaysia. In addition, KFC's quarterly projek penyayang gave out more than 32,000 meals to over 150 charity homes nationwide. three of these programmes were held in conjunction with Chinese new Year, ramadan and Deepavali. the Group's KFC Catur Bistari Challenge was widely attended in 2009. this annual business board game competition is designed to inspire participants to unlock their entrepreneurial potential. the competition is undertaken in collaboration with Bistari Young entrapreneur Sdn Bhd, a member of Johor Corporation and the developer and marketeer of the game. nearly 1,000 finalists competed at the national playoffs, which were held at the persada International Convention Centre in Johor.


qSR BRandS Bhd annual RepoRt 2009

With so much interest in the KFC Catur Bistari Challenge, the Board and management decided to create a version of the board game more appropriate for a younger demographic group. the theme retains the same purpose, that is, to encourage an understanding of the concepts of business and entrepreneurship. the game has been named Cilik Bistari and is aimed at teens and children aged nine to 14. Cilik Bistari Sdn Bhd was set up to effectively run this new venture. Key distribution channels for the game are KFC outlets, schools and the open market. KFCH continues to promote the benefits of a healthy and active lifestyle for the community by sponsoring a diverse mixture of sporting events and the teams that compete in them. We remain the official sponsor of Johor FC, and this year were honoured to be the primary sponsor of Johor's JKing Futsal Challenge held during october and november. the Group went on to contribute rM700,000 as sponsorship for the purchase of the mobile squash court ­ to be used by the Squash racquets association of Malaysia at the Malaysian open. through our sponsorship of Malaysian Yachting association (MYa), we also support local yachtsmen and women so they can achieve success in national and international competitions. the most recent sailing event, and without a doubt one of the most successful, is the IoDa asian Sailing Championship 2009 that saw the MYa team display a brave performance which earned them the second placing. our Group is dedicated to caring for the communities we operate in, especially the needy and less fortunate sections of society. numerous initiatives were carried out through the year to ease the burden on people who have been affected by poverty, poor health and other debilitating circumstances. In 2009 we continued the successful projek penyayang programme, held on this occasion at KFC Kota Damansara in conjunction with Deepavali and Chinese new Year. over 13,000 orphans, elderly and the less fortunate, spanning 150 charitable homes, were treated with KFC meals. Five other homes received donations and goodies. another highlight of the year occurred during ramadan when 2,500 QSr and KFCH staff plus members of the media were joined by 400 orphans at a Buka puasa event. More than 2,500 staff members and their families took part in the `Be the Movement' charity walk in aid of Hunger relief 2009. over rM1.1 million were raised through the sale of notebooks and donations, nationwide. the company and its employees also raised money for victims of the devastating padang earthquake in Indonesia. In 2009 the Group proposed the creation of Yayasan amal Bistari foundation. the Foundation will consolidate all future CSr programmes from across the brand stable under one roof. this will see us benefit from improved economies of scale and increased strategic alignment. In undertaking this exercise the Group will maximise financial productivity, thereby increasing its potential for charitable giving. Recognition of Our Achievements QSr's subsidiary companies picked up an array of awards and industry recognition during 2009. these wins are testament to the quality of the people who work in our organisation devising marketing strategies, promoting our brands and improving our products.


qSR BRandS Bhd annual RepoRt 2009

corporaTe sTaTemenT

pizza Hut's trophy cabinet has been expanded significantly in 2009 as it won a host of awards. on the branding front it picked up the Brandlaureate award 2008-2009 as the Best Brand in the Food & Beverage - pizza Category, an award that recognises the best brands in the asia pacific region. the company also picked up the trusted Brand 2009 Gold award (Voted by Consumers) in the Family restaurant Category from reader's Digest. pizza Hut was awarded an effie award (Bronze) for its advertising. the company also made its mark in the 2009 Malaysia Book of records as the First pizza Delivery Service with Wireless Credit/Debit payment Facility. KFCH continued its fine run of success by collecting the Franchisee of the Year 2009 award from Yum! restaurants International while along the way being recognised for its advertising efforts with the Yum! reel advertising excellence Brand 2009 award as well as by winning an effie award (Bronze). the year was kind to KFC as it was honoured with the Best Brand in the Food a & Beverage - Fast Food Category at the Brandlaureate awards 2008/2009. rounding out the Brand award season, KFCH has once again been distinguished as a brand leader by winning a reader's Digest Most trusted Brands 2009 Gold award. t the awards season has recognised ayamas with two significant industry awards. Firstly, picking up a [email protected] award from the livestock asia expo & Forum, as well as an outstanding p product Innovation award from the Malaysian livestock Industy awards. 2010 Strategic Preview t the uS economy is recovering gradually but unemployment remained high at about 9.7% in February 2010. the International Monetary Fund expects the global economy to be stronger this year, expanding by approximately 3.9% in 2010. asian economies, particularly China and India, are expected to lead the way in economic growth. the Malaysian Institute of economic r research (MIer) is projecting an economic growth of 3.7% for Malaysia in 2010, while Singapore's economy is expected to improve from a negative growth of -2% in 2009 to a positive growth of 4.5% to 6.5% in 2010. In Malaysia, the latest MIer's Consumer Sentiment Index signals a growing optimism over current financial and job outlook. Based on this generally positive outlook the Board is optimistic for 2010. looking forward, our long-term business strategy, as stipulated by the Group's Five-Year plan which was approved by the Board, will focus on enhancing the Group's existing approach while expanding its size and capabilities. We will always work toward realising the vision of the Group: to be the largest integrated food services group in the asia-pacific region with a focus on consistent quality products and exceptional customer-focused service. part of this will be achieved through an aggressive approach to marketing and new promotions. our advertising & promotion budget goes up every year in line with improved sales figures. the link between these rising figures is no coincidence. our restaurant chains have enviable top-of-mind brand recall results because we keep our selves `front and centre' in the public consciousness. this aggressive approach will be strengthened during 2010 as we give consumers more innovative products and promotions to keep them coming through our doors. a key component of our success has been restaurant expansion and in 2010 we will continue this strategy in Malaysia, Singapore, Cambodia and Brunei by opening at least 70 pizza Hut, KFC, rasaMas and Kedai ayamas restaurants. In India, we expect to open 12 new KFC restaurants across Mumbai and pune, presenting us with access to consumers of the world's second most populous country.


qSR BRandS Bhd annual RepoRt 2009

running parallel to restaurant expansion is the push for restaurant image enhancements for our older establishments. the Board and management recognise that consumers want heightened levels of comfort and ambiance. We estimate that a total of 50 restaurants will be revamped and refreshed in 2010 for pizza Hut and KFC. Image enhancements not only serve to improve our brand experience for existing consumers, they also attract new customers through our doors. the Group remains interested in tapping into new markets and entering new territories. the management's analysis of regional neighbours is ongoing and we will not rule out further overseas ventures if they are in the best interest of the Group and its shareholders. In another area of the Group, our KFC Marketing division is keeping its options open on international expansion of its product range, especially to countries that have a demand for Halal products. the Group intends for KFC Marketing to be the leading food-trading company in the country. In-Group innovation will also be a hallmark of 2010. We intend on launching new ventures to increase penetration in existing markets. projects such as Sudut ayamas, `usahawan Bistari', `roti Impit' and the Intraprenuer scheme generated increased revenue for the Group while diversifying our risk exposure. the worst of the Global economic Crisis appears to be over, but the Group will continue with its strict cost control measures to maintain or even expand margins. Balancing this operational cost efficiency is the need to continue with our investment in human capital development. We will strive to seek new ways to train and further the ambitions of our people; the front line staff who represent our brand, the drivers behind the wheel and the back-of-house executives who act as the engine room of the company. Words of Appreciation as we close on a decade that has brought a great deal of success to our Group, it is appropriate that we pay tribute to the people who have taken us this far. We owe a debt of gratitude to every single member of staff within the Group. our people have driven us forward, kept their morale up through tough economic times and delivered a performance they can be truly proud of. our appreciation goes out to our stakeholders ­ our suppliers, financiers, Governmental and regulatory agencies and shareholders ­ and most important of all, our customers. Finally, we thank our colleagues on the Board of Directors as well as the management team. With your guidance we are assured of many successes to come. on a reflective note, we extend our deepest condolences to the family, friends and colleagues of the Chairman of KFC Brunei, pSn pG anak Mohd Muntassir Bin pG Muda Hj Kamaruddin, who passed away in november 2009.




DeputY CHaIrMan

JAMAluDin MD Ali

ManaGInG DIreCtor


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

QSR Group is built on a core set of foundations which have supported our growth through the years. These foundations of customer satisfaction, restaurant expansion and staff training will be developed further during the coming years.

JAMAluDin MD Ali ManaGInG DIreCtor


qSR BRandS Bhd annual RepoRt 2009

Firm Foundations First and foremost is our ability to satisfy customers; the men, women and children who visit our restaurants and value our products. We will continue to offer them fast, efficient and friendly service while catering to their expanding palettes with appetising new products and promotions, always mindful of the need to maintain the quality of old favourites. at the same time we will forge ahead with our restaurant re-imaging drive, enhancing their ambiance to attract new customers and improve our brand experience. We will continue to expand our restaurant network, opening the door to a new base of customers in the countries we operate in. India is an especially exciting prospect considering its sizeable population. But closer to home, in Malaysia, Singapore, Cambodia and Brunei, we will also grow the number of restaurants across our brand stable. We have our staff to thank for keeping the momentum of the Group going, and to reward them, and to improve the results of the Group going forward, we will enhance our range of training aising initiatives and human capital development programmes. raising levels of motivation and loyalty amongst our staff, enabling them to reach their fullest potential, is a job we take seriously, which is why we will continue to invest in new ways to keep our people at the top of their game. Pizza hut Malaysia izza 2009 was a challenging year for pizza Hut, though we recorded excellent results in the fourth M369.8 quarter. over the year, revenue increased by rM18.1 million, or 5.1%, to rM369.8 million his from rM351.7 million in 2008. this increase was attributed to a network expansion of 21 new restaurants. these new outlets together with non-full year outlets (new stores in 2008) contributed hese net incremental sales of rM33.2 million. However, sales were affected by the sustained, price cutting exercises of our competitors. pizza Hut remains keenly aware of the need to offer our customers a wide range of new products, special launches, and innovative promotions. In the face of the economic gloom, a concerted effort to rebrand pizza Hut as a value destination defined many of the marketing initiatives carried out during 2009. these included in-store promotions such as Get More, pay less! and pay a little Get a lot! while for the Home Service section we launched the Hot pair Deals in conjunction with the successful Hot Campaign. our annual Chinese new Year promotion, this year held throughout January and February, was started with the Golden Fortune Cheesy Crown pizza. a melting pot of flavours, which included tangy mayonnaise, pineapple and prawn tempura, drove sales skyward. the promotion was supported by tV, radio and point of Sales (poS) materials at store level. over the same period we expanded our Home Service range by introducing two special dishes: the Baked pasta perfetto and the Baked rice perfetto. these new items were launched to increase menu variety and provide more options for pasta and rice. later in the year, the Viva pizza was launched as a value layer for Home Service. Four topping variants were devised while an exclusive offer for take away service was initiated where customers could take home three regular Viva pizzas for only rM33. We made a lot of our customers happy in 2009 by expanding the Sensasi Delight range. Six new personal size Cheesy lava pizzas were introduced along with an up-sell initiative where customers could pay an extra rM2.50 to enjoy twice the cheese and three times the flavour. this promotion was supported by a wide range of media including tV, press, radio and poS materials at store level; handbills were distributed at strategic locations frequented by the target market, while lrt in-train panels were utilised to capture a wider audience.


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

other successful promotions that whetted the appetite of our customers through the year included the launch of our successful Big Shot prawn pizza; and the Hot Wings campaign, which saw the introduction of two types of sauce-coated chicken wings. as of 31 December 2009, pizza Hut Malaysia opened 21 new restaurants bringing the total to 208 nationwide. Pizza hut Singapore pizza Hut Singapore achieved net sales of rM166 million, a reduction of rM10.2 million, or 5.8%, on 2008. excluding the multi-brand stores which ceased operations in September 2008, pizza Hut's sales decreased by rM3.4 million, or 2%, from 2008. this was primarily due to the full year impact of the gloomy economic environment as consumers tightened discretionary spending. as a result, value driven promotions were introduced to generate higher turnover and to raise top-of-mind awareness for pizza Hut dining occasions. a positive who-dares-wins attitude was taken on promotions during this challenging year. as the economic gloom lifts, efforts made in 2009 are expected to carry a strong momentum through to 2010. the first promotion during the year was the introduction of a new Ingot Crust prosperity pizza, symbolising wealth and prosperity for the lunar new Year. this pizza, lavishly encircled with an ingot-shaped mozzarella cheese filled crust was complemented perfectly by succulent diced BBQ chicken, pineapple and mushroom toppings, while being showered with golden crackers. Many of the promotions through 2009 focused on providing consumers with great value deals. not only did this boost the revenue of the company, it also demonstrated our sensitivity to the community during the economic crisis. Key to this line of promotions was Smart Choice, a branded value programme for Dine-In available from Monday through Friday. our competitors in the fast food market have been making inroads with consumers by offering different types of meal choices; one particularly popular option is the sandwich. In answer to our competitors, and to offer our customers even more choice, we ran a soft launch of Super Subs on our delivery menu. results from a six-store test launch during June 2009 were generally encouraging. other great promotions through out the year included the new Crispy-thin Splitzza, a unique pizza topped with two totally different flavours, priced at only $11.90. We also launched the twist `n' Dunk Christmas edition pizza, topped with the all-time favourite rolled turkey ham, roasted chicken, with roasted onion mayonnaise sauce on an interactive twist `n' Dunk crust. as of 31 December 2009, pizza Hut Singapore opened five new restaurants, bringing the total to 50 nationwide. KFC Cambodia our second year of operations in Cambodia has been a notable success. revenue increased to rM9 million as compared to rM4.9 million in 2008. the improvement in performance was due to a number of factors. Chief among them was an aggressive network expansion programme, which saw four new restaurants open in phnom penh and one in Siem riep. another factor was the adoption of better cost control methods, an increase in savings from lower chicken prices and the management's efforts to source cheaper supplies from local alternatives.

Old world charm enlivened by contemporary fittings creates a fusion of appealing ambiance across our network of restaurants.


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

KFC Cambodia held a strong and successful marketing programme through out the year. Highlights included the Holiday Combo, which attracted a total sales mix of 15%; the Sensation Combo, which was so popular with consumers it was run twice through the year; and the launch of a delivery service that will help KFC break through to a new segment of society. as of 31 December 2009, KFC opened five new restaurants bringing the total to seven nationwide. KFC holdings (Malaysia) Bhd KFCH's debut year of being a subsidiary of QSr Group saw a record set of results achieved. QS revenue reached rM2,297.4 million for the current financial year, representing a growth of 5.4% from rM2,179.8 million in 2008. the KFC restaurants segment registered a 5.8% revenue growth to rM1,723.7 million from rM1,628.9 in 2008, while the Integrated poultry segment recorded an 8.8% revenue growth to rM484.1 million from rM445 million in the previous year. KFC Malaysia It is with great pleasure that we announce another set of record results for KFC Malaysia despite the negative effects of the economic crisis. We recorded a turnover of rM1,365.5 million in 2009, a 6.3% increase on the rM1,284.4 million achieved in 2008. these impressive financial figures weren't achieved without facing challenges. the struggling economy meant consumers had less money to spend and were searching for lower priced products; health scares in the form of H1n1 and a dengue scare saw less customers walk H1 through our doors. Despite these setbacks, KFC Malaysia had a great year. We faced another challenge early in the year when our competitors slashed their prices in an attempt to capture market share. We countered these aggressive moves by launching one of our most successful promotions to date, Jom Jimat. this special value meal was introduced in april of 2009. priced from only rM4.90, the promotion gave consumers a full meal plus a soft drink. Its launch also positioned KFC as being economically sensitive in the face of the country's financial gloom. Jom Jimat proved so popular it is now a permanent feature on our menu. other promotions launched over the year included Zinger tower, Fiery lime Crunch, Cheezy Chickaroni, Shrimp Stix, and Hot rods. our promotions campaign was driven by the need to offer our customers more choice, extra convenience and every so often, a taste of the unexpected. In February of 2009 we launched a new look breakfast menu to alert customers to the 30 extra KFC restaurants that were serving breakfast. the menu introduced two new dishes, the a.m. riser and the a.m. twister; as well as including old favourites such as Chicken porridge and nasi lemak enak amongst others. the launch was a big success! a 43.6% increase in servings led to a 36.6% increase in breakfast sales. early in 2009 the Group initiated a cost efficient programme to ease financial pressure during the Global Financial Crisis. this included a new labour productivity matrix designed to reduce excessive overtime payments. the new matrix saw extra part-time restaurant staff being taken on to cover the shifts that existing part-time staff would usually work as overtime. the programme also led to a reduction in restaurant waste through a number of cost-cutting initiatives.

A warm and inviting spectrum of colours tempts customers into our network of restaurants where they are met with convenient seating arrangements and our special hallmark of great service.


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

KFC Malaysia continued to expand its restaurant network by opening 39 new stores throughout the country. running parallel to expansion was our restaurant image enhancement programme, improving ambiance and brand experience for our customers. to improve cost efficiency we reduced the number of 24-hour restaurants from 74 to 66, after conducting diligent cost-benefit analysis in line with the Group's cost saving initiatives. overall, KFC Malaysia has stayed ahead of competitors in nearly all fields including sales and number of restaurants. as of 31 December 2009, KFC Malaysia operates 475 restaurants across the country. KFC Singapore KFC Singapore recorded another fantastic year capped by record high sales of rM342.7 million, up 3.6% from rM330.8 million in 2008. this increase was partly attributed to additional restaurants offering breakfast. Besides maintaining top line sales, margin flow-through improved due to a tight rein on operating costs and lower advertising expenses. the savings were partially offset with the sales deleveraging impact on fixed costs. However, it was further boosted by a rM4.3 million government cash grant (Jobs Credit Scheme), and rental rebates of rM1.5 million during the year. KFC Singapore directed a successful promotion campaign during 2009. the year was kickstarted with the launch of the Fortune Feast and Golden treats promotion, in conjunction with the Chinese new Year celebrations. Consumers who ordered the Fortune Feast and Golden treats were presented with a themed bucket incrusted with prosperous wishes. another Chinese new Year promotion included the similarly designed Golden treats platter which contained Golden Shrimp Coins. all very auspicious! During 2009, Singapore was hit quite badly by the Global economic Crisis. to show our sensitivity to the nation's economic hardship, KFC Singapore launched the ultimate Value Box. this was a custom-made box that contained a Shrooms Burger or an o.r. Fillet Burger, one piece of chicken, a regular Whipped potato and a regular pepsi, priced at only S$5.50. Such was the success of the ultimate Value Box, it is now available as a permanent item on the KFC Singapore menu. In May of 2009 we launched the long awaited KFC a.m. programme. this great breakfast menu included our set meals, namely a.m. twister original recipe and twister american, a.m. platter, a.m. Waffles and eggs and a.m. porridge. We also featured our value item, the a.m. riser meal at just S$3. the launch was a big success. First, we sent out a mailer with coupons telling the public the good news about KFC a.m (the coupons were for Dine-In daypart to drive traffic during our key hours while communications were focused on KFC a.m.). Second, we ran an integrated campaign including tV, outdoor and press, online and in-store point of sale materials. this resulted in Dine-In sales mix for breakfast increasing from 4% to 7% during the mailer period, reaching as high as 11% during the tV advertising period. We also launched a frequency card called the Sunshine Card to keep consumers coming back for more. other highlights of the promotions calendar included the all Day Value campaign; the pricebusting Snackers range; and the Movie Marathon with nescafe Frappe. these are just some of the many promotions KFC Singapore ran through the year. this demonstrates one of the reasons why KFC is the region's number one fast food restaurant. We innovate, offering our customers new choices and fresh flavours. By year end, KFC Singapore was operating 77 stores, which includes four new openings across the island.

We always aim to create the finest dining experience for our customers by offering them an environment of warm ambiance and tempting meals.


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

KFC Brunei KFC Brunei had a successful year, achieving year-end revenue of rM15.5 million, a 13.1% jump from rM13.7 million in 2008. over the year we introduced a rich selection of new products and promotions to please our existing customers and attract new patrons through our doors. these included Zinger tower, KFC Colonel Wings, Shrimp Stix Combo, Hot rods and the hugely popular Jom Jimat range. We also launched a thematic campaign, "Good things come together with KFC", to connect with customers in an intimate, emotional and personal way. By the end of the year, KFC Brunei was operating nine restaurants across the country, inclusive of one new store opening. KFC india Impending KFC restaurants openings in Mumbai and pune offer a very exciting prospect for the Group. as India is home to the second largest population in the world, the potential for success is high. During 2009, the KFC India team has been laying groundwork, ensuring operational readiness and generally making sure conditions are as favourable as possible for the 12 restaurants the Group expects to open in 2010. So far, 14 restaurant General Managers (rGMs) have been flown in to Malaysia to undergo intensive restaurant training from our seasoned teams. Despite operating in the country for 14 years, KFC is still considered a new brand by Indian consumers. It is our intention to promote the chain with our customary aggressive marketing campaigns to raise awareness and compete for top-of-mind brand recall. RasaMas & Kedai Ayamas rasaMas turned in a revenue of rM23.2 million against prior year's rM25.8 million as its performance was affected by the weak economic climate. In 2010, however, we expect a significant increase in brand awareness and customer numbers due to the success of our Syoknya rasaMas roaster Cook-off reality television cookery contest, which drew large audiences to Malaysia's tV3 and tV9. one of the most popular recipes, the nyonya roaster, was launched in mid-november and we believe it will be a firm favourite with consumers. In 2009, we opened six new rasaMas restaurants in Malaysia and one in Brunei, bringing the total number to date to 43. Kedai ayamas had a very strong year despite the poor financial climate, recording revenue of rM40.5 million as compared to rM34.8 million in 2008. We continued to expand the Kedai ayamas product family through the year. Six new chicken products were launched including Crispy Fried tom Yam Chicken, BBQ Combo, Chicken Frankfurters and Chicken nuggets. Four new Bakers' Street products were also introduced to the market, namely Karipap ayam, Samosa, Kasturi and Donat. these new products demonstrate our passion for innovation and a commitment to serve Malaysians new flavours at great prices.


qSR BRandS Bhd annual RepoRt 2009

as of 31 December 2009, we added 10 new Kedai ayamas stores in Malaysia, bringing the total to 35 across the country. integrated Poultry Operations KFCH's Integrated poultry Business achieved a total revenue of rM484.1 million, an 8.8% increase from rM445 million in 2008. ayamas Food Corporation Sdn Bhd (aFCSB) manages contract farming and poultry processing activities. aFCSB operates processing facilities in port Klang, Selangor; Bukit Mertajam, penang; and a new plant in Bandar tenggara, Johor. the sales and marketing side of Integrated poultry operations are managed by KFC Marketing Sdn Bhd (KFC Marketing), a subsidiary of aFCSB. During the year under review, KFC Marketing developed a new strategic approach designed to make our products appeal to a much wider section of society. the initiative is called Base of pyramid (Bop). the target market for Bop are households whose combined monthly income is less than rM3,000. as this target market is motivated by price, a new product range of Further processed products was launched that could be purchased at much lower rates than usual. the range, called ayamas Jimat, is available in local stores and supermarkets, rather than hightraffic hypermarkets, to ensure costs are kept to a minimum. KFC Marketing went on to set up a subsidiary company called ayamazz Sdn Bhd (ayamazz). ayamazz will pioneer the Group's new `roti Impit' or Hot dog push-cart franchise venture. recent university or college graduates who demonstrate entrepreneurial flair will be offered the chance to operate roti Impit push-cart, which are stocked with ayamas products. the initial plan will see roti Impit push-carts being rolled out across higher-education campuses throughout Malaysia. ancillary Sauce-Manufacturing region Food Industries Sdn Bhd (rFI) is the Group's sauce-manufacturing arm. In 2009, rFI's sales grew to rM77.6 million against 2008's rM74.7 million. on the domestic open market front, rFI recorded a massive 26% jump in sales, accounting for 33.7% of total sales. this significant improvement was attributed to the success of the newly appointed KFC Marketing as its marketing arm. the Group plans for rFI to become one of the major sauce manufacturers in the region. the first step on this journey is to develop a more extensive product range. over the course of 2009, rFI launched five new products to the market : BBQ Sauce, Honey BBQ Sauce, Chipotle Sauce, Salsa Sauce and Satay Sauce. Bakery the Group's Bakery division achieved sales of rM28.4 million in 2009, a 10% reduction on the rM31.5 million recorded in 2008. this was attributed to the increased demand for KFC meals which did not offer buns, such as the Colonel rice Combo. Bakery continues to strive for improvement in quality control. to this end, Bakery implemented an additional metal detection unit at the Garlic Bread Spreading line as an upgrade on the HaCCp system. this comes in addition to being an HaCCp certified production plant and the holder of an ISo 9001: 2008 and MS1480: 2007 from Moody International.


qSR BRandS Bhd annual RepoRt 2009

review of operaTions

Commissary In 2009, Commissary's sales grew to rM4 million, an 11% increase from the rM3.6 million achieved in 2008. Development at the Commissary plant continued with the production floor of the coleslaw line being upgraded in July 2009 to meet Yum! restaurants' International requirements. the Group is expecting Commissary to have a good 2010, so will further upgrade its facility to reduce costs and improve quality. Tepak Marketing tepak Marketing Sdn Bhd increased its revenue to rM20.6 million, a 7.8% improvement over 2008's rM19.1 million. the Group attributes this successful year to the contract manufacturing activities involving lipton Iced tea. to strengthen the distribution of Zippie products, the business has now come under the supervision of KFC Marketing. human Capital Development QSr has long been defined by its commitment to human capital development, which is why we invest in training throughout the Group, from part-time restaurant employees through to senior management. as of 31 December 2009, the Group had 27,650 employees. unlocking their potential and nurturing their talent not only encourages them to be the best they can be, it also allows us to fill vacant senior positions organically from within. We invested about rM8 million on training and development programmes in 2009. on average, QSr's employees were given 59 hours of training over the year. these represented significant increases in our training investment over previous years. During 2009, over 2,000 staff received an annual performance appraisal, showing impressive results in the process. In fact, 2009 saw a 5% increase in the number of staff receiving good and excellent scores when compared with 2008's results. It is imperative for us as an organisation to take stock of our talent bank in view of our rapid expansion. With this in mind, we have carried out succession planning to ensure the availability of experienced and capable employees prepared to assume these roles as they become available. So far, we have identified the critical positions which require our utmost urgent attention. the next steps are to catalogue the job functions inherent to critical positions, identify the most suitable talent to fill the specific role, and then fully train that talent, thereby ensuring a smooth succession. Since 1994, the excellent Service award or eXSa has been staged every year in Singapore. It is a national award that recognises individuals who have delivered outstanding service. the aim of the award is to develop service models for staff to emulate; create service champions and set the bar for professional service. In 2009, ten employees from various subsidiaries were shortlisted for the award.


qSR BRandS Bhd annual RepoRt 2009

In 2009, we introduced a new mandatory training initiative, namely the preparation & enhancement programme for newly promoted employees, otherwise known as prep. as the name suggests, it is intended to prepare and enhance employees' competence levels in the following pre-identified key areas : Finance, Industrial relations, Management or Supervisory Skills, occupational Safety & Health and Business Communication. In october 2009, an all-out push to further our Quality Movement initiative saw the revamp and re-launch of the two-year old Suggestion Scheme format. additionally, a Suggestion Scheme booklet was introduced for employees' easy reference and guidance. the booklet provides outlines on employees' roles within the scheme, scope of suggestions, terms & conditions of the scheme and also, information on the much sought-after rewards programme. at Hari Mekar, an annual quality event aimed at driving performance within the Group, QSr was awarded Johor Corporation's overall Champion's trophy for the third straight year! Halal Commitment Halal compliance is one of the cornerstones of our business. It is integral to the present success and future expansion of our group of companies. But the Group's commitment to Halal compliance isn't just confined to our stable of brands; we regularly participate in third party forums, sponsor trade conventions and contribute to think tanks, all associated with the promotion and improvement of Halal initiatives. By doing so, we are able to inspire confidence in the consumer markets we operate in, allowing present and future customers to trust in the quality and source of food they expect at our restaurants. Internally, our Shariah and Halal Compliance Department conducts strict Halal audit controls across each subsidiary company and their business units. the audits cover all raw materials, manufacturing processes, incoming supplies and packaging. unwavering efforts are made to avoid cross-contamination during the storing, handling, preparation, packaging and transportation of our products. our Human resources department regularly run best-practice training initiatives to maintain the highest standards of quality and hygiene. QSr has its own Shariah advisory Council, made up of learned Islamic scholars from reputable institutions. this impartial body oversees the Group's adherence to Halal compliance by reviewing internal food management systems, inspecting restaurant and plant premises and ensuring our ingredients pass their stringent standards. In addition, the Council will also ensure that the products are Halal certified by Jabatan Kemajuan Islam Malaysia (JaKIM).

creaTing more special momenTs

the great taste of KFC is enjoyed by young and old alike, bringing them closer together wherever they may be.


qSR BRandS Bhd annual RepoRt 2009

corporaTe social responsibiliTy

ChanGinG today foR a BetteR toMoRRoW While we take pride of yet another successful year, we continue to acknowledge that with success comes great responsibility and that is the reason why Corporate Social responsibility (CSr) continues to be our corporate priority. We continue to put great emphasis on conducting business in a responsible and ethical way. From improvement on our products and services to helping the communities in which we operate, we continue to seek out ways to enrich the lives of those around us. our journey is about a corporation that takes its social responsibility to heart. It is about strengthening local communities, promoting equal opportunities in the workplace, developing human capital, enhancing our customers' experience and improving the lives of those around us. It is about passionate commitment to CSr. CoMMunity QSr has always placed a great deal of emphasis on the community. In 2009, we broke new ground by bringing all our CSr activities under one umbrella body, a foundation that will manage and control all our charity initiatives. We were active in sporting activities, and also continued to work on education campaigns, including entrepreneur schemes for students. Many orphans, elderly people and single mothers benefited from a number of programmes over the past year and it is this that forms the heart of our CSr endeavours. Yayasan Amal Bistari QSr recently proposed the incorporation of Yayasan amal Bistari, a corporate foundation which will be the means through which CSr activities, endeavours and programmes from and in support of all QSr entities and brands are carried out. the foundation will be a nongovernmental, not-for-profit organization that campaigns for and supports the six pillars. · Halal · Education · Entrepreneurdevelopment · Sports · Nationalunity · Thelessfortunate newspaper-in-education (nie) In an effort to improve english language literacy standards among school children in Malaysia, pizza Hut continued to partner with the Star english daily in the newspaper-in-education (nIe) programme. More than 90,000 students from over 350 schools participated in Mag Inc 2009. this programme has proved fruitful in many ways, with students across the country having benefited from their exposure to pizza Hut and the major english daily. the Grand prize winners in 2009 received pre-university scholarships worth rM20,000 each.


qSR BRandS Bhd annual RepoRt 2009

Catur Bistari Challenge and Cilik Bistari promote entrepreneurship the state level playoffs of the KFC Catur Bistari Challenge 2009/2010 were held simultaneously throughout Malaysia in the month of october with the finals being held in January 2010. the Catur Bistari Challenge business board game national competition is a QSr corporate social responsibility project held annually to promote entrepreneurship among youths and young adults. It is undertaken jointly with Bistari Young entrapreneur Sdn Bhd, a member of Johor Corporation Group and the developer and marketeer of the board game. about 1,000 finalists competed for the chance to win rM150,000 worth of prizes up for grabs at the national level playoffs held in persada Johor International Convention Centre. the Grand prize winner received a proton persona. QSr, Johor Corporation and Bistari Young entrapreneur Sdn Bhd (BYe), the developers and marketeers of Catur Bistari, signed a Memorandum of agreement (Moa) that will allow KFC to sell the Cilik Bistari board game, a simplified version of Catur Bistari for younger children, at all its outlets. they will also collaborate to promote the Cilik Bistari game, including using KFC and other brand logos and mascots in the game sets. Cilik Bistari uses an interesting approach in teaching children and teens on business ethics, culture and entrepreneurship. the entrepreneurial values and knowledge can be conveyed effectively to the target groups through games. Yacht regattas, futsal tournaments, squash championships, kite festivals the KFC sailing team raced alongside other competitors at every regatta organised by the Malaysian Yacht association. these included langkawi, penang and Sabah amongst others. our futsal teams competed with the best in the JKing Futsal Challenge Johor 2009, as well as I-Futsal championship organised by Harian Metro. elsewhere, pizza Hut sponsored the Squash racquet association of Malaysia a brand new four-sided mobile glass court for the International Kl open Championships. But the highlight of the year was seeing QSr's kite fly high up in the sky with other kites from all over the world at the International Kite Festival in pasir Gudang, Johor and Bintulu, Sarawak. Pizza hut's nationwide Charity Deliveries pizza Hut carried out its largest round of nationwide charitable pizza deliveries twice during Chinese new Year and in the month of ramadan, with pizza delivered each time to almost 8,000 residents from close to 97 orphanages, old folks homes and charity homes all over Malaysia. pizza Hut also brought early Chinese new Year joy to the elderly at the Salvation army Joyhaven Home when we delivered pizza and launched our nationwide Chinese new Year Charity Delivery as part of our annual charity initiative.


qSR BRandS Bhd annual RepoRt 2009

corporaTe social responsibiliTy

Projek Penyayang projek penyayang has been a fixture in our CSr calendar for the last 15 years and we continued the tradition this year by giving KFC to the less fortunate, the elderly and orphans throughout Malaysia, every quarter of the year. over 13,000 people in over 150 homes benefited from this programme in 2009. We brought joy to orphans and the disabled from the surrounding communities when we celebrated the Festival of lights with them in conjunction with the 45th projek penyayang. KFC was a part of this Deepavali lunch and we gave them goodie bags. We also provided KFC to 153 homes involving 13,215 less fortunate people. `Be The Movement' Charity Walk KFC and pizza Hut Malaysia, in support of Hunger relief 2009, raised over rM1.1 million from the sale of notepads and Hut's power Meals nationwide. the campaign culminated in a charity walk held at padang Merbok, Kuala lumpur, attended by over 2,500 QSr employees and their families and friends. this is the third year in a row KFC and pizza Hut are running this Hunger relief campaign. part of the proceeds went in aid to the victims of the padang, Indonesia earthquake by providing food and drinks worth rM200,000. We also provided on-ground help with immediate emergency relief efforts. this was participated by Briged Waqaf, the emergency relief arm of Johor Corporation. Buka Puasa with Orphans our annual Buka puasa session was held at ayamas port Klang in 2009 and saw a turnout of over 2,500 employees. they were joined by 400 orphans who received goodie bags and food from KFC, pizza Hut and rasaMas. Tijarah Ramadhan QSr had the privilege of sponsoring two episodes of tijarah ramadhan, a television programme dedicated to featuring companies which donate to the underprivileged. two poverty stricken families from Dungun, terengganu and nibong tebal, penang were chosen and their plight was highlighted on television. In addition, representatives from KFC, pizza Hut, rasaMas and Kedai ayamas visited these families and extended donations in the form of cash and kind. MaRKetplaCe ethical business practices need to be constantly reinforced in the minds of our staff, the public as well as the upcoming generation of future entrepreneurs. Halal acquiescence is vital to the success and continued development of our brands and part of a first-class, resolute and enduring business.


qSR BRandS Bhd annual RepoRt 2009

Halal initiatives once again we participated in the World Halal Forum, which features speakers from all areas of the Halal industry participating in open panel discussions. Speakers included members of the government, industry players, representatives from various nGos, certification agencies, and academics from the food industry across the globe. QSr's participation was in the form of sponsorship and product showcase. our Chairman, tan Sri Dato' Muhammad ali Hashim was also invited to speak and share his knowledge and expertise at this international event. Hosted by the Ministry of International trade and Industry (MItI) and organised by the Malaysia external trade Development Corporation (MatraDe) for the sixth consecutive year, the Malaysian International Halal Showcase (MIHaS) has since its inception brought in hundreds of exhibitors. QSr once again participated in Malaysia's largest food and beverage exhibition and the world's largest international Halal trade fair by setting up a booth and promoting our Halal certified products and services to the thousands of visitors from all over the world. QSr has never failed to participate in every single Halal Food Standards realisation (Hafstar) event organised throughout the country. this programme has been developed by Halal Development Corporation (HDC) and the Department of Standards (SIrIM) to promote Malaysian Halal Standards and to regularise and discuss the standard procedures of handling, processing and storing of food based on Shariah and Malaysian Standards. our Chairman and representatives from our family of brands are regular speakers at this event. The entrepreneurial spirit starts with students this initiative was undertaken in the hope of imparting an interest in business and entrepreneur development amongst university students. our Chairman and Managing Director spoke at over 30 institutes of higher learning as they shared their experience in the world of business and encouraged the students to make the first step. the Group collaborates with the Bistari Young entrepreneur Sdn Bhd in mentorship programmes and educational lectures that help develop young Malaysian entrepreneurial talents. this includes the tunas Bistari, Didik Bistari and Siswa Bistari entrepreneur programmes. WoRKplaCe over 28,000 people all over the country go to work everyday striving to be the best in the business. and we owe much of our triumphs to them. our energetic team is made up of individuals who are the best-in-class in their awareness, capability, proficiency and drive for success.


qSR BRandS Bhd annual RepoRt 2009

corporaTe social responsibiliTy

Pedoman 2009 our annual pedoman was once again held at persada Johor International Convention Centre, Johor Bahru with the theme of "Business Jihad". the one day event was attended by all restaurant Managers from KFC, pizza Hut, rasaMas and Kedai ayamas, as well as support staff from all over the country. Highlights included presentations on human capital development, financial reviews of the brands and Group, and the signing of Key performance Indicators (KpIs). We also took the opportunity to recognise long serving employees and staff who were being promoted. there was also an open dialogue between the Chairman and staff. QSr has many employees serving the company, some of whom have spent their entire working lives with us. this is why we carry out the long Service awards to recognise their loyalty and award them with saving bonds from BSn as a sign of our appreciation and gratitude for their work. Champs Challenges KFC and pizza Hut organised the national Champs Challenge in Kuala lumpur with the best of the best from restaurant Managers and staff coming together to play off intensely in the final rounds, competing to emerge as national Champions and represent Malaysia at the regional Champs Challenge. KFC and pizza Hut Malaysia played host to over 400 participants from 11 countries in the asia pacific region as they came to battle it out at the regional Champs Challenge. Malaysia dominated the awards with KFC winning 15 and pizza Hut winning seven. Management Associates Programme as part of our efforts to train young Malaysians and incorporate them into our work culture, we carried out the first ever Management associated programme. this talent management and succession planning initiative was organised to recruit new graduates who have now become part of our permanent staff. hari Mekar ­ Quality Day We once again held our annual Hari Mekar competition at Glenmarie as teams from throughout the Group battled it out in various categories in an effort to be crowned the overall Champions. the winners then represented QSr at the Grand Finals of Hari Mekar organised by Johor Corporation and we are delighted to report that QSr was crowned overall champion for the third year in a row.


qSR BRandS Bhd annual RepoRt 2009

the enviRonMent the world we live in changes day by day and every decision we make has an impact on the environment and future generations. the fresh air we take for granted, the very ground we walk on, the basic human need of clean water ­ these are all our responsibilities and we need to be aware of how our every move can potentially have an effect on the environment. We have therefore taken steps to understand and minimise the impact of our business on the environment. as a result, QSr is dedicated towards exploring ways in which we can reduce our impact on the environment without compromising operational standards or shareholder value. Ayamas Port Klang the waste water treatment plant at ayamas port Klang was set up in 1988 and treats the final discharge waste water in compliance with the Doe Standard B for discharge. this plant has been upgraded numerous times at an estimated cost of rM5 million thus far. It operates using two main waste water treatment processes ­ Continuous processor and the Sequential Batch reactor (SBr) process. the plant currently treats 2,000 cubic metres of waste water discharge per day. Ayamas Bandar Tenggara, Johor this waste water treatment facility, located in Johor, began operations in December 2008 after the opening of the plant. Built at a cost of rM2 million, the system treats the final discharge waste water in compliance with the Doe Standard a of discharge. using only the Sequential Batch reactor (SBr) process, this plant treats 800 cubic metres of final discharge waste water daily. Bakery QSr has set up a waste water treatment plant at Kompleks KFC Glenmarie, which houses the Bakery and Commissary division. the plant uses a system that treats the final discharge waste water in accordance with the Doe Standard B for discharge. the proposed treatment process will use the Biological treatment System, which uses a uaSB (up-Flow anaerobic Sludge Bed) and aICar (alternative Intermittent Cyclic reactor). the estimated cost of the entire project is rM1.5 million. Region Food industries Commissioned and built in 2004, this waste water treatment plant uses a system that treats the final discharge waste water, complying with the Doe Standard B of discharge. using a chemical and bio treatment continuous processor, the plant treats 250 cubic metres per day. CoRpoRate SoCial ReSponSiBility foR the futuRe CSr at QSr is an evolving, ever expanding effort which covers a diverse range of areas but clearly focuses on one main objective ­ to further enrich the lives of the communities in which we operate. Moving forward, we will continue to remain focused on our CSr objectives as we consistently look out for ways to carry out our corporate responsibility initiatives. at QSr, we are optimistic that the sustained CSr initiatives on our part will help preserve our future as the house of some of Malaysia's most favourite brands.

someThing for everyone

there is always something different to choose at our restaurants due to a culture of innovation which sees new products launched throughout the year.


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