Uniservice Corporation

Restaurants | Financial Main Page | IGHRM Main Page
Disclaimer:

International Guild of Hospitality & Restaurant Managers

Business Summary
Nasdaq: UNSRA

Financial Summary

Uniservice Corporation, a holding company for Kentucky Foods Chile, S.A., is in the fast food business and operates 36 Kentucky Fried Chicken restaurants in the Santiago, Chile area. For the fiscal year ended 12/31/00, revenues fell 7% to $12 million. Net loss totalled $1.1 million, vs. an income of $139 thousand. Revenues reflect the general decline in the Chilean economy and the closing of some stores. Net loss also reflects higher accrual of executives' salaries.

Extended Business Summary

Uniservice Corporation, the only Kentucky Fried Chicken (KFC) franchisee in Chile and the largest KFC franchisee in Central and South America, owns and operates 36 KFC Restaurants throughout Chile. These KFC restaurants offer basically the same menu, meal options and design as the KFC restaurants found throughout the United States. The Company's KFC restaurants are generally located in high-traffic areas including shopping malls, food courts, shopping centers, and downtown areas.

The Company's KFC restaurants consist of several building types with a variety of layouts and seating capacities. Of the Company's 36 restaurants, 34 are open seven days a week, typically from 10:00 a.m. to midnight. Some of the Company's restaurants offer drive-through service. Home delivery is available at no-charge from 17 of the Company's restaurants. All of the Company's KFC restaurants offer a full line of KFC products, including chicken pieces, chicken sandwiches, a variety of side items including coleslaw, mashed potatoes, salads and corn, and dessert. In addition to a full-line of soft drinks, 21 of the Company's current restaurants are licensed to sell beer.

28 of the Company's restaurants are operating under Uniservice's franchise agreement, five are operating under a temporary license agreement, and three are operating without any agreement. Kentucky Fried Chicken International Holdings and Tricon Global Restaurants, which operates and licenses the KFC concept, have prohibited the Company from opening any additional restaurants until a new franchise and development agreement covering the Company's eight restaurants operating outside the Company's KFC franchise agreement and any future restaurants has been executed.

The Company's operations are monitored for speed, accuracy and quality of service. The Company's senior management and restaurant management staff are principally responsible for ensuring compliance with the Company's internal operating procedures, as well as those laid out in Uniservice's licensing agreements with Tricon Global Restaurants. Uniservice's restaurants have uniform operating standards and specifications relating to the quality, preparation and selection of menu items, maintenance and cleanliness of the premises and employee conduct and internal surveys. Detailed reports from the Company's management information system and from Tricon Global Restaurants are tabulated and distributed to management on a regular basis to help maintain compliance. In addition to customer satisfaction, these reports track comparable sales and customer counts, labor and food costs, inventory levels, waste losses and cash balances.

Management also conducts unscheduled inspections and audits of the Company's restaurants to ensure quality. Under the Company's KFC franchise agreement, the Company is presently prohibited from engaging in any KFC brand business outside of Chile. Subject to compliance with the Company's franchise agreement and the development agreement, the Company may, however, engage in other businesses which do not conflict with the KFC brand, subject to prior approval by Tricon Global Restaurants.

Disclaimer:
The data included within the Financial section is solely for information and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly advised to obtain professional advice with qualified individuals or corporations for any investments of funds.

IGHRM Main Page