PIZZA HUT-The Introduction

Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell,

A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain

with over 12,500 restaurants across 91 countries

In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore,

Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of

opening Pizza Hut restaurants at many more locations to service a larger customer base across

the country

Pizza Hut is known for its

Good Quality Food (Hygiene)

Brand Name

Food worth its Price

Good Service

New Kind and Styles of Pizzas in its Menu.

PIZZA HUT'S MISSION STATEMENT

We take pride in making a perfect pizza and providing courteous and helpful service on time all

the time. Every customer says, "I'll be back!" We are the employer of choice offering team

members opportunities For Growth, Advancement, And Rewarding Careers in a Fun, Safe

Working Environment.

• P.E.A.R.L.S

PASSION for excellence in Doing everything

EXECUTE with positive energy and urgency.

ACCOUNTABLE for growth in customer satisfaction and profitability.

RECOGNIZE the achievement of others and have fun doing it.

LISTEN and more importantly, respond to the voice of the customer.

PIZZA HUT STORY

1958: The legacy of Pizza Hut began, when two college-aged brothers from Whichita,

Kansas, Frank and Dan Carney opens first Pizza Hut restaurant after borrowing $600

from their mother.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka,

Kansas.

1968: International market entered with opening of Pizza Hut restaurant in Canada.

1969: Red roof adopted for restaurants.

1972: Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc.

for an undisclosed sum.

1986:Delivery service, as a new concept, is initiated

1996: Pizza hut comes to India with a dine in restaurant Bangalore that has special

vegetarian pizzas.

1997: Pizza hut opens a dine-in restaurant in Delhi.

2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in

restaurants.

2009: Pizza Hut offering baked fillings in the corner of the pizza

LOCATION IN INDIA

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has

captured a dominant and significant share of the pizza market and has maintained an impressive

growth rate of over 40 per cent per annu. Yum! Brands Inc is the owner of the Pizza Hut chain

worldwide. A Fortune 300 company, Yum! Brands owns Kentucky Fried Chicken, Pizza Hut,

Taco Bell, A&W and Long John Silver’s restaurants worldwide. In India Pizza Hut has not

included all kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian

customers

A critical factor in Pizza Hut’s success has been a menu that has constantly evolved and

expanded to cater to the changing needs and specific preferences of customers in different parts

of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly

established itself as a brand with an Indian heart. Besides offering an extensive range of

vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in

Surat and later in Ahmedabad and Chowpatty, where it offers a Jain menu sans all root-based

ingredients.

QUALITY MANAGEMENT

To ensure stringent international bench-marks in the quality of products and services at all its

restaurants across the world, Pizza Hut has a mystery shopper program in which an unknown

official visits a restaurant and evaluates it on certain defined parameters called C.H.A.M.P.S. that

stand for Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. Based on

the report submitted by the official, the restaurants are rated and in the rare case of finding under

performers, they are kept under strict vigil

This is the most important for a food chain like Pizza Hut. All the employees’ backof-the-house

i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet

the quality standards set by Pizza Hut around the world. This strategy is important in order to

satisfy the CHAMPS. This strategy is strictly implemented in Pizza Hut in order to fulfill the

quality standards. Different quality management staff is also there at Pizza Hut. The shift

managers have the task to observe whether the quality standards are met or not, whereas there

are a total quality management department at the main office in Gurgaon. This department has

the task to implement quality standards and know whether they are achieved or not.

PERCEPTUAL MAPPING

Perceptual mapping helps the Management to see the real picture of their own and their competitiors. In

above map, Services are plotted on X-axis and Pricing is plotted on Y-axis.

Expensive and high services : 1st quadrant

Expensive and moderate services : 2nd quadrant

Inexpensive and moderate services : 3rd quadrant

Inexpensive and high services : 4th quadrant

The competitors for Pizza Hut are Domino’s, KFC and McDonalds. Pizza Hut is providing High Services

at very high price. That is why it is plotted in 1st quadrant. Likewise, McDonald provide high services but

the food products are not expensive. But in 2nd quadrant, the services are moderate and they cost high than

McDonald.

TECHNOLOGICAL CHANGES

Now a day’s technology is improving so Pizza hut has to keep track with it or else its competitor

may take advantage of it and move ahead than pizza hut. It makes sure that it uses baking and

heating ovens that are new and efficient. They have tie ups with company which provide them

cold rooms. This tie up is of exchange of machine after a period of 6 months if new kind of

machine is made by them.

Not only in machines and equipments but also in marketing they try to be updated. They use

internet (they have VIP (very into pizza) club made where people can register their email, mobile

number where pizza hut provide them latest pizza news, discounts and offers at email ,mobile

phones) telemarketing, advertising for their promotional activities.

Computer based customer data that is MIS (managing information system) helps in collecting

customer data, daily transactions, future forecasting and decision making.

Also in taking order they use the software provided by Devyani International Limited. DIL is a

leading franchisee of YUM Restaurants International, the world's largest restaurant company

with over 34,000 restaurants in more than 100 countries. Following are the screenshots telling

the process of order in pizza hut.

When a customer enters and takes table at pizza hut that table has certain number. An average of

4 tables are handled by one single employee. When order is placed by the customer the employee

enters his employee id and mark the table in which the customer is sitting, place his order and

once he click on yes time of order is displayed on screen.Like our table is numbered 114 and

order is placed at 5.25 pm. When the employee clicks on order he has an option of adding or

removing a particular toping

One of the benefit this software has that any employee can take the bill as it’s feeded in software.

And in case the employee who has served is busy payment can be taken up by anyone else

thereby not making customer wait at all. Also it is secured as no one else except employee can

use this software. Its transparent as its in written form.

CHASE STRATEGY OF PIZZA HUT

At the peak hours they prepare themselves few hours before

1. All team members are prepared before peak hours with vegetables required for

toppings. They keep things ready in the line. Keep lemonade syrup ready so that

they just have to add 7 up when the customer ask for a Lemonade.

2. They be ready with different patties ( pizza base)

3. They follow PREP strategy for peak hours.

4. During peak hour they provide the pizza making time of 15 – 20 minutes. While

there cycle of making one pizza is only 7 minutes. In normal case they provide the

pizza making time of 10 – 14 minutes.

This they do, so that the customers have food as early as possible and their table gets vacant

early so that more and more customers are served.

SWOT ANALYSIS

Strngths

Good Quality Food (Hygiene)- All the ingredients except local vegetables are provided

by Yum Restaurants through their Restaurant Support System. All other inputs are

according to the quality standards provided by them.

Brand Name: Pizza Hut is a franchise of Yum Restaurant which has its outlets

worldwide.

Food worth its Price: Employing economies of scale, Pizza Hut has made its offerings

more affordable. They have starting range of Pizza with just Rs 75 and individual serving

pizza with cold drink for Rs 99 only.

Good Service: The provide good service in terms of timeliness of pizza, courteousness of

employee, knowledge of employees, taste of pizza etc. They provide pizza before time,

their staff are scattered around near all the tables so that incase the customer wants to call

pizza boy they just have to wave.

Weaknesses

Que during Peak Hour

They advertise very less

Fewer Outlets: Their outlets are not spread all over the city as compared to other

competitors.

Opportunities

Pizza Slice: They are one of the best pizza makers. In their take aways they can start with

pizza slices. This will attract people with small budget as well as those who wish to try

pizza hut. This has been started by Sbaro – one of its competitor. Pizza Hut being in

market for a long time can cash on this opportunity

Low Calorie Pizzas in their menu

Threats

Competitors like Dominos, Sbaro .

Housewives are interested in making Pizzas & other Fast Food at home.

7 P’s OF SERVICES

PRODUCT

Worldwide and in India, Pizza Hut has come to become synonymous with the ‘best pizzas under

one roof’. This is because at Pizza Hut the belief is that every pizza has its own magic, thus

making it a destination product – which everyone seeks. It is this belief that has ignited the

passion to create, innovate and serve the finest product the industry has to offer, while setting

standards for others to strive to replicate. Pizza Hut is committed to providing uncompromising

product quality, offering customers the highest value for money and giving service that is warm,

friendly and personal. A critical factor in Pizza Hut’s success has been its unique dining

experience. Crewmembers at Pizza Hut strive each day to provide ‘customer mania’ - the kind of

service that ensures that every visit of the customer is a memorable one.

Over the years Pizza Hut has also developed and successfully introduced a range of products

especially suited to the Indian palate. These products like Chicken Tikka, Spicy Korma, Spicy

Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also

given Pizza Hut a competitive edge is that in addition to an extensive range of internationally

renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust, in India the menu

offers the option of a complete meal. It includes appetizers, a Salad Bar - where the customers

can make their own fresh salads, a range of soups, pastas and desserts

PRICE

In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail

price of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that

is above the competition, but also promote frequent sales to lower the price below them. Both

Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used..

Pizza Hut will be able to sell two products together at a single price to suggest a good value.

Different groups of customers are willing to pay different prices for the same product. Pizza Hut

can sell "The Extreme" to the customers who will pay the higher price to be the first to buy and

also to the bargain hunters Finally, this strategy will emphasize product and service quality.

Pizza Hut sets a high initial price for its products to send a signal to customers that its products

are quality and the service is excellent.

PROMOTION

The objectives of promotion are to introduce a new product, stimulate demand, change the short-

term behavior of the customers, and encourage repeat or greater usage by current customers.

Pizza hut uses many promotional strategies. The main promotion is a coupon to purchase. This

promotion is also distributed mainly by mail (VIP members), but also by fliers on college

campuses around the country in order to reach the target market. They are using billboards on

main stream places to get there customer. They are also distributing door to door brochures to

capture more and more customers. Pizza huts also using marketing techniques. These are the

strategies Pizza hut is using for its marketing. Pizza huts try's to attract the younger generation as

their main market segment. Apart from this Pizza Hut is using intense marketing strategies they

are also giving ads in magazines. Advertising camping will creates awareness of the products in

our target markets.

DISTRIBUTION

The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is

successful when there is an extremely large market that is geographically dispersed. The direct

channel is also useful when there are a large number of buyers, but a small amount purchased by

each.

Pizza Hut uses three different methods of selling its products directly to the market. The first

method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut ahead of

time, place an order, and the order is delivered to the customer's home.

Another method of distribution is for customers to dine-in. Customers can go to the nearest Pizza

Hut, place an order, and either leave with the order or eat at the restaurant. One of Pizza Hut's

largest competitive advantages is its restaurant style facility. Pizza Hut offers a clean place to sit

down and enjoy the variety of pizzas, salads, and sandwiches in a fun, family atmosphere.

The third method of distribution is! online ordering. Customers can now go on the Internet and

place an order. This method is useful because it allows customers to view the entire menu,

download any special coupons, and order without having to disclose any credit card numbers.

The market coverage for "The Extreme" will be nationwide. Customers all over the country will

be able to order "The Extreme" by one of the three distribution methods.

PEOPLE

Here the job design is not the most difficult task to do. Also there is no specific requirement for

recruiting process.

After talking one of the employees in Pizza Hut, we came to know the criteria of selection. The

girl was from west India, she was only 10th passed out. After this we it was confirmed that there

is no proper requirement of the educational background. The only factor they were considering

on the communication skills, how they communicate with the customers.

Since the communication is the most important factor between the customer and employee

because the whole process is depended on giving the orders for food. For this the Management

conducted the training process for the new employees. The Training is given for total 5 days. Out

of 5 days, they have 3 days for kitchen training and other 2 days in the main dining, that is, how

to take orders and basically how to communicate with customers and make them happy by their

services.

PROCESS

The design of the process of the pizza hut is very efficient .pizza hut do not follow any kind of

hierarchy , all the employee is at the same level ,pizza hut has a very prescribe and well known

process by adopting various technology software which help them to upgrade their supply

management and also manage their crowd of customer efficiently.

PHYSICAL EVIDENCE

The ambience of the pizza hut is good enough to catch up the people .they provide a very good

dining experience with high quality of atmosphere in terms of there physical evidence. and pizza

hut always try to upgrade with changing envierment and modernization is key of success of the

pizza hut.

SERVICE PROCESS

FISH BONE

Fish bone is a cause and effect diagram to identify potential cause of problems. Pizza hut always try to

have customer satisfaction on priority and if there customer are not satisfied, what are the main cause of

unsatisfaction. These causes can be well explained by the fish bone diagram.

FISH BONE DIAGRAM OF PIZZA HUT UNSATISFIED

CUSTOMER

SERVICES CAPE

It includes

Physical product: the product of the company which is transferred to customer. These products can be

seen & touched.

In pizza hut, there are various products that were transferred to the customer like, pizza (veg & non veg),

Pasta, Garlic Bread, Salads, Cold Drinks, Lemonade. The pizza is made in many flavors as per customers

choice.

SERVICE PRODUCT: Core performance purchased by the customer. It means in what manner the

services are being provided to customer. Flow of events that are designed to produce the necessary

outcome.

SERVICE ENVIRONMENT : Evidence: Whole Ambiance, Background Music, Staff’s Uniform.

In pizza hut, the ambiance plays a very important part. It is the environment, ambiance, cleanliness,

background music that attract customers to eat and to feel good about the whole process of entering the

Hut and living the Hut. Staff’s uniform is also very major part of their environment because if their

uniform are not good enough, the customer will have a very negative impact on him and may be do not

bother to place order. So apart from the ambiance, the uniforms are also important part of their service

environment.

SERVICE DELIVERY : planning your work and working your plan.

The management of Pizza Hut are really strict with their planning and implementing those plans which

they working on.

GAP MODEL

A Gap Model defines the various gaps or wrong understanding or lack of sufficient knowledge within the

Company. Due to these Gaps the company may face huge loses and thus low market share.

In Pizza Hut, the objective of the management is to demolish all the gaps on the surface of the company.

In order to deal with the Gaps of Pizza Hut, we conclude on two major Gaps on hand.

GAP 1: The gap between customer expectations and Management perception of customer’s expectations.

This gap arises whenever they have peak hours, that is, during day & night and at weekends. At this time

the waiting time for the food to come is quite big. Generally a single pizza took 7 minutes to get prepared

but at peak hours the service provider took 3 times more than the usual time. Hence this is the case of

what time customer expected for his meal to be ready and what the management thought of time to

prepare the meal.

GAP 4: The gap between Service delivery and external communication to customers.

This gap arises when the services are not provided as promised. That is, for example, in their

advertisement they talk of Pizza in just Rs.199 but the actual cost of that pizza is more than 199 after

including VAT and other taxes. Therefore, what Pizza Hut is promised to their customers are not

providing to them which leads to the formation of this Gap.

RESEARCH & DEVELOPMENT

As we told that Pizza Hut is a brand under Yum therefore any research on making of new types of pizza,

pasta, ice creams and drinks is a core responsibility of Yum itself. However it encourages its employees

also to come up with new recipes and reward them for the same. Pizza Hut was the first one to come up

with thin crust pizza and corner filled with topping. This differentiates it from other pizza making

restaurants.

Pizza Hut provides same Product- Pizza. But keeps on doing minor variations in it. It started with thin

base pizzas. Under this it has reduce the weight of its Dough but kept the size of its pizza the same. By

this it offered a new variety in pizza which is comparatively lighter to eat than others. Now it has come up

with another new pizza with Golden Cheddar melted on the top and a tempted filling baked into the edge.

In this they have not only garnished pizza with veg or non-veg toppings but also its base with some filling

(They have advertised it by saying that you can enjoy pizza backwards now). They take ideas from hotel

management institute(Institute of Hotel Management)

VARIABILITY

For the purpose of least Variability possibility they follow below mentioned steps

TRAINING- Every new employee undertakes the training of 5 days which includes 3 Days

Kitchen Handling and 2 days Customer Dealing(Hospitality). This training is not provided at

pizza hut outlet but rather at a cities head office.

SCRIPTS: They have provided their employees with particular scripts that has to be spoken when

similar situation arises

Eg. When the customer enters employee have to say “Hi Mam /Sir. How are you? Welcome to Pizza Hut.

You require table for 2/4/6.”

When pizza is ordered they say “Pizza will take 15-20 minutes. Drinks will be served now (if ordered).

Could I take the menu ”

DOUGH: The different sizes of pizza are having different dough weight so as to keep all pizza

bases at a same level. Pizza base is formed of 3 different size-Personal, Medium and Family Size.

The size is differentiated by weight and then the shape. That means the weight of Dough of

Personal Pizza and that of Medium Pizza is different (weight not disclosed as it’s their internal

information)

Variability at two pizza hut outlets: while we visited four pizza hut outlet, we found each pizza hut outlet

bit different in terms of the service provided by them. The employee’s courtesy was different. This may

be due to different management styles followed by managers.

Like in Pizza Hut, CP- We were told the name of the employee who would be serving us. Throughout the

meal only that employee interacted with us. When we refer employee by their name they feel respected.

In Pizza Hut, GK – employee was not concerned too much interactive with the customer and was just

serving. He just served what he was told by us. He didn’t ask for whether we want anything else or not.

In Pizza Hut, PVR Saket – Employee was coming too many times to ask how good food is, whether we

want something else . This was quite offending as he disturbs the customer in between when he is

chatting.

Therefore we think that a common training must be provided to management staff so that such a

variability doesn’t exist in customer experiences at Pizza Hut

MAINTENANCE MANAGEMENT

For the purpose of managing as well as maintaining machines there is GPM (General Purpose

Maintenance) person available at every pizza hut outlet. He know how to repair machine, how to change

temperature and incase of any failure how to temporary make the machine work. The have done AMC

with the Yum Restaurant International Ltd for machine provided by them. For dish washers they have 5

yr AMC done. There is one IT person available to check system or software failure. This enables Pizza

Hut to be prepared for any small breakdown affecting there business at any particular time. They have

made a proactive management

MATERIALS MANAGEMENT

Since pizza hut has most of its inputs( vegetables, cheese ,topping sauce, imported vegetables) perishable,

it has to be stored at a particular level of temperature. This is done by Restaurant Support System of

YUM Restaurants. Whenever the things are taken from their Bills are issued to a particular outlet and

these bills are paid monthly. This has reduced loss due to spoilage by a great extent