The Dish On Yum! Brands

CEO David Novak talks about the fast-food industry.
8:01 | 01/13/12

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Transcript for The Dish On Yum! Brands
When it comes to fast food who's bigger than mcdonalds and subway. The answer is Yum! Brands parent company -- KFC Taco Bell and Pizza Hut. Joining us today is David Novak chairman and CEO of the company to tell us about the challenges facing the fast food industry. -- to talk about his new book which is called taking people with you. Welcome David thanks so much for being on the show it's great to be here Sobel gets booked in a minute but let's start out talking about your company. Growth strategies here in the US where -- market is somewhat saturated these days. Well first of all we're we're -- global global companies 75% of our profits come from outside the United States where we have. Big businesses in China where we have 4000 restaurants we just created a separate division for India where. We expect open over a hundred restaurants and we just went into Africa we've been in Africa for a number years but we've gone -- five new countries in Africa so. We've got a big story in and growth in emerging markets. Here in the United States where we're focused on on value and innovation in and really driving our brands and taking them to to new heights and we're very excited about the year and we feel like we can have strong year in the United States. Well we talk about fast -- in this country without talking about the obesity epidemic in the US and in fact I don't know if you've heard as David but New York city's Health Department has unveiled. There's really graphic ad campaign which. You know we're showing -- -- here which depicts supersize sodas leading to things like -- -- Industry like -- David fight back against these types of images. Well first the -- what we provide is balanced options so for example a Taco Bell we have our fresco line of products where we have eight items under ten fat grams. We also at Kentucky. KFC we have Kentucky grilled chicken. Which you can get two pieces of grilled chicken some Green beans and -- even a biscuit and -- 400 calories so we make these options available. The other thing that we do as we promote exercise because we think that the -- everyone has to take personal accountability for the choices that they make in terms of what they eat. And also you need to take accountability for making sure that she exercises well. And so what we try to do is just communicate that is -- -- in his loudly is as we can. And at the same time we offered delicious fun foods that people are just have a lot of fun funny you know it was -- last time -- had a bad time around a pizza. And you know people enjoy our food and we're proud of the food we make high quality ingredients and we do the best job we can you know 75%. Of what people leak is consumed at home. So I think people -- -- take real accountability for what they. How much this. So -- the healthy stuff that you have on the menus -- and it doesn't -- Well our flagship products -- Original recipe and hand -- you know and and and are based tacos at Taco Bell. You know those are the -- mainstays of what we do but we have a -- reasonably good mix of of those types of products. How often do you meet the food at your restaurants and do you have a favorite. Well I eight I -- our our food at least 45 times a week and I -- Are fresco line of -- -- it Taco Bell I hate to Kentucky grilled chicken -- -- and then you know. On Friday Saturday night -- early like eleven out and that's what I have my Kentucky fried chicken original recipe and that's when I have my opinion piece in and I enjoy every bite -- Well you must be exercising quite a bit David. Well -- I do exercise and -- I think exercising and nutrition. Is is is really that the name in -- game. And nobody tells me to exercise and nobody tells me what. I make those decisions myself and you know I think it's easy to victimize industries and and brands and products when the real accountability has to lie within the person. In short aren't let's talk about your book it's called -- taking of people with you when I understand it's about your leadership philosophy. How would you describe it. And well you know I've been teaching this program called taking people with you for fourteen years and it's all about you know. Getting the right mindset in the mindset is is that everybody on your team counts everybody matters and that people come to work. Everybody comes word 99.9 percent of people come to work to do wanna do good things they wanna be a part of year. You're your team a part of what your work and on so the single biggest thing you can do is get them involved and let them know that they count. And you know -- What I talk about in the book is is how you develop the right mindset to do exactly that. -- how you develop a plan with your people not for your people but with your people and then how you follow through they get results because a lot of times. A lot of teams peak times people get started on something but they don't follow up. But what this book is all about it's not -- a book of just platitudes in principle to tell you start from the beginning of the single biggest thing that -- -- and on and then how you develop a specific plan to really get it done. Because after all nobody can get anything big done without taking people with them. This seem like an odd question but do you still like all you have many many employees all around the world do you feel like they have to really believe and what they're selling in love. -- -- product and eat tacos from Taco Bell and pizza as in order to be great employees. I think it's really important that you care about the brand that you work with and you believe in and and if you don't you -- -- go work somewhere else so. You know what we try to do is is educator people about what our -- stand for. Make sure that our processes and disciplines -- in place that we can -- for our customers and we we want our our team members obviously to be proud of of of what they sell. And by and large I think most of -- of course I'm sure we we do have -- out liars but the bottom line -- people love our food all around the world -- team members are no different. -- and what is the biggest mistake and that boss's attention. I think the biggest thing that this -- the bosses make is that they they act like they're the boss. I think the -- is an archaic phrase I think what you need to be today as the coach and a coach who helps people get better. Coach takes the -- with attempted to to victory. Coast just doesn't tell people people what to do like -- does. A coach really. Gets people. To want to do it in and move forward to it together so I think just because you're the boss doesn't mean you should act like the Boston when you think you have the power and that that allows you -- lord that power on other people. I think you're making a huge mistake because you're gonna lose your very best people -- great people do not have to work for people who don't treated with respect. And like -- -- -- a lot in places like India and China do have to adjust your strategy is based on the differences in culture there. Well let's interest in as I just -- my taking people with you leadership program to 120 executives in Shanghai. I also just -- about two months earlier I was in Germany and and did the same thing. And the principles that I talk about in in the book. -- universal. I'm people wanna be respected people want to be recognized for what they did people want to be involved in in their company people want to be a part of something great so. -- our vision for our company is to be the defining global company that feeds the world in one of the things is great about this book by the way -- all the proceeds go to the united nations World Food Program which is our corporate social responsibility and. That's interesting -- sort of the flip side of the criticism that you get you know you talk a little bit earlier about victimization and who should be blamed for the problems with obesity. In this country do steal David that you've become warm more -- a target in recent years because of the anti obesity campaigns. Well I think that you know we we are very big company and you know we -- lot of food -- around the world and in. You know I think people are are looking for rusted to be responsible and I think that's exactly what we've done and I think that's what we've broadened our our menu and then -- that same time we offer our food that people want love. So you know I think that -- any -- -- a big company. You that you need to do the right things and we're very focused on on doing the right things for our customers. All right David Novak chairman and CEO of young brands. Thanks so much -- good luck with the book OK thank you very much appreciated.

This transcript has been automatically generated and may not be 100% accurate.

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