By Jane Han
Staff Reporter
The idea-maker behind Pizza Hut Korea, the country's No. 1 pizza chain, is stepping down next month. And to this news, industry insiders raise questions whether this is going to slow the growth of the U.S. franchise in Korea.
The position may be easily replaceable if it were a typical company president, but many focus their eyes because Cho In-soo is not only known as a clever businessman, but a standout pizza expert.
Since 1997 when he first took on the top post of the local operation, the 55-year-old masterminded the creation of a series of popular hits, including the maker's Rich Gold, Mini Size, Cheese Bites and Fresh Gourmet menus ― some of which were benchmarked by other regional chains overseas.
He also initiated the nationwide call center system where customers can call one toll-free number to place easy orders with their local joint.
Standing as one of the top three best-selling franchises worldwide, Pizza Hut Korea last year sent 10.8 billion won to its Kentucky-based parent company Yum! Restaurants International, and a total of almost 72 billion won over the past seven years.
Leaving these achievements behind, Cho decided to leave work and plan for a second career where he can help Korean firms and brands make global market entrances.
``The company chief may be replaced, but Pizza Hut's business plans are set to remain aggressive,'' said company officials, adding that new menu releases will be launched in mid-January and active franchise expansion will be prioritized this year.
The local pizza market, which stood around 800 billion won in 2005 and grew to 1 trillion won in 2006, is now estimated at around 1.2 trillion won, seeing a 20 to 30 percent growth every year.
And competing with Pizza Hut is another U.S. brand Domino's Pizza and local name Mister Pizza, which have stepped up their game in recent years.
``The Korean pizza industry is unique because it constantly calls for unique ideas that fit the local appetite,'' said a Domino's Pizza official, as he referred to the various creative menus that consist of homegrown ingredients.
Outgoing President Cho said in a recent interview that pizzas are now in a tailor-made era, where unconventional attempts steal consumers.
Another noticeable trend is that the delivery business is growing as a key division, as more working parents are ordering in, instead of making trips to the restaurant.
``This means pizza makers must not only make good pizza, but also get it to customer's doorsteps as quickly as possible,'' he said.