PIZZA HUT-The Introduction

PROJECT REPORT

ON

PIZZA HUT

Submitted By:

• Shruti Bhatia (70)
• Vikas Bansal (88)
• Vipul Agarwal (90)
• Dhruv Sahni(22)
• Neha(42)
• Aakanksha Vashistha(1)
  

INDEX

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

Ø  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.

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

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

Ø  1969: Red roof adopted for restaurants.

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

Ø  1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an undisclosed sum.

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

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

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

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

Ø  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.

ANSOFF MATRIX

Pizza Hut has always had the first mover advantage. Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the different things in their menu. Most recent one is the filling of toppings in the pizza corner. Therefore they are offering same customer a different kind of product. Thus they are into Service Development. Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different - different enough that customers will think it as a whole new product. For this they take innovative ideas from Institutes like IHM ( Institute of Hotel Management) as well as motivate their workforce to come up with ideas.

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.

PIZZA HUT SERVICE QUALITY DIMENSIONS

Therefore from the above information we analysed that on the scale of 5 Pizza Hut ranks

• Tangibility – 4.2 (30 /7)
• Reliability – 4.2 (21/5)
• Responsiveness – 3.5 (28/8)
• Assurance – 4.75 (19/4)
• Empathy – 4.5 (18/4)

And a total Service quality they score 4.23 on the scale of 5 ( 4.2 +4.2+ 3.5+4.75+4.5/ 5) which tells that its customer are satisfied. However it has to improve them on Responsiveness as it will help them to delight the customer. They are improving on their que management system by already preparing themselves two hours before the peak hours. The keep things at the place and make their ingredients ready so that minimum time is taken to serve the customer. As a result table gets vacant early and other customers can be served.

This was the questionnaire through which we got above data. Average data has been marked of 42 customers. However data was collected from 56 customers. But we chose to take data from 42 customers only as some customers filled the questionnaire in a hurry and marked most 5 or most 1.

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