CORPORATE SOCIAL RESPONSIBILITY REPORT FY2018 NEW ZEALAND OPERATIONS

Transcription

1 CORPORATE SOCIAL RESPONSIBILITY REPORT FY2018 NEW ZEALAND OPERATIONS 1

2 COMMUNITY AND SUSTAINABILITY Our vision is to be the leading operator of enduring and innovative QSR brands in New Zealand. That s why we re guided by principles of sustainability. These principles help shape our menus, management practices, our people and the way we contribute to the communities we serve. Four interdependent elements - People, Food, Planet and Progress - comprise the core aspects of our environmental, social and governance ethos and sustain the health and vitality of our company. We re proud of the advances we continue to make in these areas, in line with our culture of innovation and our drive to constantly raise the bar in everything we do. 2

3 PEOPLE Restaurant Brands depends on the support of Kiwi consumers and on positive partnerships with our employees, suppliers, franchisees and investors. In turn we make a strong economic contribution to our local communities, and support a range of non-profit and community organisations. 3

4 OUR EMPLOYEES 3,596 STAFF NATIONWIDE SERVING 72,000 CUSTOMERS EVERY DAY Our employees are at the heart of our business, and critical to its success. We pride ourselves on being market leaders in terms of overall employment conditions for our employees. We re committed to being a responsible and fair employer. We: + + lead the fast food sector for guaranteed days, hours of permanent work and security of pay. We were the first company in the sector to discontinue zero-hour contracts. The overall package of the terms and conditions of our employees compares favourably with our competitors in the sector and includes a faster pathway for new employees to increase their pay rates; + + support our employees with the time and resources to build their competencies and skills across all our brands. E-learning programmes have been rolled out to a large proportion of our staff and a classroom style orientation has proven popular for new recruits to Carl s Jr.; + + place the health and safety of our employees as our top priority. We have an excellent record for workplace health and safety and we continue to strive towards our target of zero workplace injuries across all our brands; + + are an equal opportunity employer and we embrace and reflect the diversity of the communities that we operate in. We are an important first job opportunity for many New Zealanders and around 22% of our employees are under 20 years of age. We are committed to a truly diverse work environment which is reflected by the many different nationalities represented across the business and more than half of our workforce (together with a significant proportion of senior management) are female. 4

5 SAFE, HEALTHY WORKPLACES The health and safety of our employees and customers is our top priority. We have an excellent record for workplace health and safety. + + Workplace lost time incidents per million hours worked was 4 in FY Our target: zero loss of workdays from injury across all our brands. All employees working in our stores must complete Health and Safety and Food Safety (Unit Standard 167) training, and demonstrate ongoing competency. All employees also have the ability to participate in our health & safety employee participation programme, as a Health & Safety Lead. TRAINING AND DEVELOPMENT One of our company s strengths is the way we develop our people and their skills at every level. We ve trained thousands of new employees from basic food handling skills to restaurant manager level and beyond. Our focus is on developing the people we have and reducing staff turnover, by: + + investing in our people through training and education programmes across all our brands; + + identifying talented employees and providing clear pathways for their career development; + + constantly updating our employee training and education programmes; + + rolling out an e-learning programme for a large proportion of our staff. We re a tertiary level member of ACC s Accredited Employers Programme, and a member of the Business Leaders Health and Safety Forum. EQUALITY AND DIVERSITY Restaurant Brands is an equal opportunity employer and we embrace and reflect the diversity of the communities we operate in. Restaurant Brands recognises that diversity encompasses, but is not limited to gender, age, ethnicity, sexual orientation, religious beliefs and cultural background. Diversity recognises and values the contribution of people with differences in background, experience and perspectives. + + Our staff range in age from The average age of our employees is We are an important first job opportunity for many of our employees with around 22% of our employees under 20 years of age. + + Our workforce is 56% female, including a significant proportion of senior management. 5

6 FOOD Restaurant Brands serves high quality, great tasting food with seasonally and locally sourced ingredients, and we continue to raise our own bar for nutrition and sustainability. 6

7 WELLBEING We recognise that obesity and heart disease are serious health issues in New Zealand. Both the causes and the solutions are complex, requiring everyone to play their part. We continue to focus on improving the nutritional composition of our food, with an emphasis on sodium, sugar and saturated fat reduction. We provide detailed nutritional information about our products online to enable our customers to make informed choices. INGREDIENTS We support trusted local suppliers and responsible industry practices in line with our ethical purchasing and procurement policies % of our ingredients are sourced locally. + + KFC chicken is grain-fed, barn-raised, hormone and steroid free, and is delivered fresh from Inghams and Tegel. All our chicken is produced to rigorous standards overseen by the Poultry Industry Association New Zealand, the Ministry for Primary Industries and the National Animal Welfare Committee. ADVERTISING TO CHILDREN + + Restaurant Brands is aware of the need for special care when advertising is likely to reach children or young people, and ensures that any advertising follows rules set out in the ASA Codes. As a responsible QSR operator our policy is to not advertise nor market our products directly to children. + + We do not have any children s giveaways or toys in any of our meals, and aim to only promote sugar free beverages in all advertising material and on menu panels. + + For TV, Out Of Home, Online and Radio advertising our demographics are at least For Online, our targeting has a black list and exclusions to avoid any children s content. All of our AdShel placements have a rule where we do not book sites within 300m of any school. For large format bookings, i.e. billboards, we avoid any sites on, or within, close proximity to school grounds. + + Starbucks coffee is sourced in accordance with its CAFE (Coffee and Farmer Equity) Practices programme. CAFE is designed to sustain the environmentally and socially responsible production of high-quality coffee and secure a better future for coffee farmers. FOOD SAFETY From our trusted suppliers through our kitchens and onto your plate, our food safety system and external audits deliver great-tasting food you can trust. + + All KFC, Pizza Hut and Carl s Jr. stores are routinely audited by Environmental Health Officers to the standard of the Ministry of Primary Industries. + + Annual audits of all 22 Starbucks coffee stores by Assure Quality using a tailored Starbucks food safety plan. 7

8 GIVING BACK TO OUR COMMUNITIES We re proud of the contribution we make to our local areas, delivering important economic benefits and supporting a range of community and charitable organisations. We review our efforts on an ongoing basis to ensure that they remain relevant and valuable to the communities we serve. ECONOMIC CONTRIBUTION Our business operations make a significant contribution to the communities we serve, through jobs, wages and salaries, tax payments, dividends, goods and services purchased and investment in existing and new stores. SURF LIFE SAVING NEW ZEALAND LIMITED In the last ten years Surf Life Saving New Zealand has saved 13,700 lives, it s a vital community service run by volunteers and is funded entirely by donations. KFC has been a charity partner of Surf Life Saving New Zealand since We re very proud to be able to do our bit to support those serving between the flags. As well as raising funds, KFC helps run a multi-lingual water safety education campaign, showing Kiwis how to stay safe at the beach. + + $157,958 raised for SLSNZ in 2017/ $1 donated from every KFC Surf Safe bucket sold in October and November along with in-store collections over summer GRAEME DINGLE FOUNDATION The Graeme Dingle Foundation offers community-based youth mentoring programmes that help kids transition to secondary school. Its STARS programme is designed to help young people build positive relationships with peers, teachers and older students and to learn life skills, confidence and resilience. + + Carl s Jr. donates 10 cents from every Super Star with Cheese burger to the Foundation. + + $15,000 raised for the STARS programme in the 2017/2018 year. NZPWG ANITA BOON PRO-AM + + KFC has been a major sponsor since 2011 of the annual Anita Boon Pro-Am tournament, providing the KFC Golf Scholarship aimed at furthering Kiwi women s golfing careers. + + Auckland s Munchin Keh and Phillis Meti were the dual winners of the 2018 KFC Golf Scholarship. + + The pair will split the $12,000 prize evenly, following in the footsteps of fellow Aucklander Liv Cheng, who claimed the KFC Golf Scholarship for three straight years from

9 PLANET We re conscious of the impact our operations have on the environment. Restaurant Brands is always working to minimise waste, maximise energy efficiency and use resources carefully. 9

10 RECYCLING Restaurant Brands is conscious of the impact our operations have on the environment and we are working to minimise waste, maximise energy efficiency and use resources carefully. We: + + continue to source all our packaging from sustainable timbers; + + continue with initiatives that will see all cardboard and paper recycled. Cooking oil is reprocessed for biodiesel and soap; PACKAGING We source all packaging from sustainable timbers. + + All Pizza Hut boxes are made from 100% recycled fibre and are 100% recyclable. + + KFC s recyclable packaging is sourced from sustainable timber. + + None of our packaging is sourced from Asian pulp and paper. + + are a member of the Public Place Recycling Scheme (PPRS), a programme that helps New Zealanders to recycle and reduce litter while they re away from home. ENERGY USE WASTE One of our major waste products is cooking oil. All oil used by KFC, Pizza Hut and Carl s Jr. is collected by Transpacific for recycling. Grease traps are installed in all our stores to prevent oil entering the waste water system % of our cooking oil is recycled % is used in the manufacture of Transpacific bio-diesel and green fuels % is exported to make soap. Yum! Brands has set up a world-class operations team to work on energy efficiency opportunities. We, in New Zealand, benefit from these advances and actively participate in Yum! energy saving initiatives. + + We re always looking to reduce our energy footprint through the way we work, the technology we use and the buildings we develop. + + Since 2005 we ve monitored live power usage in our KFC stores to reduce peak load, and encourage employees to turn off equipment when not in use. Further improvements to this system are underway. + + We have an in-house system to compare KFC stores sales to their power usage, highlighting any potential inefficiencies in energy use. 10

11 PROGRESS Restaurant Brands continues to proactively and fairly reward all its stakeholders. We have: + + Since 2004, invested $125 million in the KFC and Carl s Jr. store networks. + + Paid our staff $119 million in salary and wages this year, up from $107 million in the prior year. + + Paid $28.9 million in dividends to our investors this year. + + As a responsible corporate citizen, paid $11 million in company tax and $28.4 million in goods and services tax this year. 11

12 FINANCIALS FY18 Paid $11 million in income tax and $28.4 million in goods and services tax Paid $28.9 million in dividends to investors Paid $119 million in salaries and wages Paid $278 million for goods and services Paid $14 million in capital expenditure with local suppliers and contractors 12

13 KFC TRANSFORMATION PROGRAMME + + $105m invested since 2004 including new store builds % of the KFC network now new or transformed stores upgraded in 2017/2018. CARL S JR. INVESTMENT PROGRAMME + + $20m invested in new stores new stores built since GROWING PIZZA HUT FRANCHISEE COMMUNITY Pizza Hut stores now owned by local franchisees. 13

14 People, Food, Planet and Progress. 14