Pepsico to Reorganize Its Global Restaurant Business

In a realignment of its international restaurant business, Pepsico Inc. will consolidate domestic and international operations at both Pizza Hut and Taco Bell.

As part of the realignment, Steve Reinemund, president and chief executive of Pizza Hut’s U.S. operations, was named president and CEO of the new Pizza Hut Worldwide division.John Martin, president and chief executive of Taco Bell’s domestic operations, was named president and CEO of the new Taco Bell Worldwide division.

International operations for the two concepts were previously managed by Pepsico Food Service International (PFSI), which will now concentrate fully on its food-service distribution business. Graham Butler, president of PFSI, was named to the new position of chief executive of Pepsico Food Systems Worldwide Distribution, an expanded operation that will serve as the distribution arm for Pepsico’s global restaurant businesses, including Kentucky Fried Chicken. Kentucky Fried Chicken already encompasses both domestic and international operations.

Pizza Hut currently has 1,400 restaurants in 62 countries outside the United States, while Taco Bell is represented in eight countries outside the United States with 59 units. With nearly 19,000 units around the globe, Pepsico is one of the world’s largest restaurant operator. In 1989, sales from its restaurant sector grew 20% to $5.3 billion.