Overseas operations often flourished while local management ignored or even defied orders from Louisville headquarters. By 1994, KFC had a total of 9,407 outlets worldwide, including 5,149 outlets in the US, and over 100,000 employees. That year, the chain began to struggle after competitors such as McDonald's introduced value menu offerings. After a disappointing set of quarterly earnings, Cranor left the company in January 1994. In his wake, two executives with marketing backgrounds were charged with reviving the company. Roger Enrico was appointed as the CEO of PepsiCo Worldwide Restaurants, and David C. Novak was appointed President of KFC in North America. In 1995, Novak introduced two successful new products— Crispy Strips (breaded strips of chicken) and the chicken pot pie— the chain's first major new product launches in almost two years. Novak credits an improved, more "open" relationship with franchisees for the introduction of the two new items: Crispy Strips were invented by an Arkansas franchisee, and the pot pie was similarly developed alongside franchisees. Meanwhile, less popular items, such as corn muffins, were removed from the menu. At the same time, Enrico scaled back the increasing competition between KFC and its sister companies, Taco Bell and Pizza Hut; Taco Bell had begun offering its own chicken products, and KFC had attacked Pizza Hut in its marketing. In 1996 the company repaired its relationship with its franchisees by immediately dropping the most contentious of the contract terms that had been proposed by chairman John Cranor five years previously. The 1976 contract was restored, including the 1.5 mile outlet exclusivity zone, while the parent company gained greater control over national advertising. Novak also axed the Colonel's Rotisserie Gold product and introduced a new non-fried item called the Tender Roast. Tender Roast was served by piece, as with the fried chicken, in contrast with the rotisserie product, which had been sold in quarter, half or whole chicken portions. Afterwards, Novak oversaw ten fiscal quarters of consecutive growth at KFC North America. As a result of his success at KFC North America, Novak became President and CEO of the entire KFC organization in 1996. In August 1997, PepsiCo spun off its poorly performing restaurants division as a public company valued at US$4.5 billion (around US$6.5 billion in 2013). Although KFC had been doing well, Pizza Hut and Taco Bell had been under-performing.