Have you already begun testing the pasta at your Pizza Huts? We are starting the rollout right now, so we are in prep stages. And it is very good. We have tasted it, and I like it. It offers variety, but it is an extension of a similar product line.

How would you characterize the franchisees’ involvement in both of those rollouts? You know, I do not know how I would characterize that.

There is partnering on all kinds of things. You know, palates have changed—how people eat to some extent. New product offerings are not unusual, and I think they are welcomed. And it is a partnership. I do not see any resistance. I think in fact, both sides are championing it. It is a positive thing.

Recently YUM!’s domestic sales have slowed a bit, while international sales have really taken off. Is there concern that YUM! is focusing more on growing international than improving domestic sales? Running great restaurants starts with the experience we have in each and every restaurant with each and every customer. And YUM! as a whole and the brands that I am in have great teams of operators currently in place. And, you know, we are pleased with returns on our restaurants.

But the brands have strengthened, and, much like the McDonald’s model, we continue to grow domestically. But now YUM! is strong enough that it is looking for international growth.

The support that YUM! continues to give the franchisee community remains strong, and domestic [markets] still remain an important and critical growth area for the brands. So I look at this like many corporate moves from my time on several corporate boards: Looking for expansion internationally is important to all brands.

Overall, how are your four brands doing in this economy? Domestic sales for the entire quick-service industry have been impacted by a number of factors. Clearly the slowing economy and other things, but given the history and strength of our brands, people will continue to eat and do eat. That opportunity to make sure we continue to provide the best service but also look at value offerings, convenience, consistency, and highest service are the things that I think enable us to continue to move through these types of periods successfully. And I look forward. I do not look backward. I believe we are with the right brands, which we will continue to grow even in such a market.

You brought up value pricing. But does a product like Pizza Hut’s Pizza Mia impact your margins? You know, I do not talk about margins or whatever. I think it increases our sales, it increases our consumer radar screen.

Those are things that all companies do, and we have a balance and a mix. It adds to not only our current customer base, but increases our customer base, depending on market share.

We conducted a technology adoption survey with Frantz Group. The main takeaway was that franchisees want brands to do a better job of talking to them about what is happening before a technology rollout. How should that conversation sound? There are financial models, there are operational models … it is all the Ws (what, why, where, when) and those are valuable elements. Those discussions are always productive.

YUM! had a few PR challenges last year. How do you feel about the company’s response? All quick-services have impact issues from time to time. Given the strength of the brand, I am not only still committed to the brand, but extremely optimistic about the future. We have a loyal base of customers who are passionate about “thinking outside of the bun,” so to speak. In that regard, we are focused on the future, and I am very positive.

Did you see any fallout at your stores at the local level? In terms of talking about it?

Right, consumers concerned, or slowing sales. That was an issue specific to a particular part of the country. And again, we have a portfolio of brands. Taco Bell continues to be the strongest of them. We continue to build restaurants, and people continue to come. So I would say in that regard we are in a very good position relative to the strength of the brand.

Are you looking at any green or eco-friendly operational changes for your stores? The new lines are highly energy efficient. It is not just managing our consumption. It is the focus, in that regard, of total consumption. YUM! is looking at several initiatives and endeavors, not only how products are delivered and recycled. So yes, we are committed in that regard.

Relative to Palo Alto’s personal developments, we are doing a lot of xeriscaping, trying to use materials and products that are better insulators and better value in terms of controlling our costs.