Case Study Pizza Hut Essay

Custom Student Mr. Teacher ENG 1001-04 5 January 2017

Case Study Pizza Hut

Introduction

pizza hut is corporately known as pizza hut incorporation it started out as a pizza parlor opened up by dan and frank carney in a small rented building in Kansas , using only $600 borrowed from their mother. in 1966 the first pizza hut office was built in Wichita to oversee 145 restaurant

in 1968 the number of pizza hut restaurant had reached 300 , and pizza hut had decide to open one restaurant outside united state and it is in Canada . pizza now is one of the World’s largest restaurant company in the world . in fact there were over 6,000 restaurant in the united states and more than 5,000 stored located in more than 90 countries around the world .

pizza hut incorporation is continuously striving for giving people the best quality product even they had a lot of problem that they are now facing . so this study will help you to understand how pizza hut deals with the challenge and opportunities that business world bring. And the main focused of this study is how the pizza hut go about responding to workforce diversity and also how they tackle problem concerning it.

CONCEPT

On June 15, 1958 , Dan and Frank Carney, two college students from Wichita Kansas, opened the first pizza hut restaurant . it was a big success and by 1963 they opened 43 restaurant including franchisees . by 1981 pizza hut became the largest pizza restaurant chain in the world both sales and restaurant .

In 1984 pizza hut never consider the domino’s its competitor . Pizza hut has to focused on how to increased their profitability of delivery units and their expansion . the concept of pizza hut delivery was fast catching up and is expanding in the market .

Pizza hut experience the effect of domino’s expansion in its company owned stores . these stores controlled most of the large , densely populated metropolitan markets .by the late 1985 , pizza hut senior management was convinced that Domino’s dominance of the fast growing delivery segment was the major threat of pizza hut .

in 1997 pizza hut was acquired by one of the giants of international business the Pepsi Cola Inc,. as part of the Pepsi cola corporate family , pizza hut shared leadership position with such fine product like brand soft drinks and brand snack

Pizza hut is known in the business world as Pizza hut inc. it is an American style restaurant and international franchise that offers different styles of pizza. Aside from that their company are also offering other foods like pasta ,salad, breadstick , and garlic bread.

The growth of the company was due to a good product being delivered at a good price and offering perceived value . the company has adjusted to a new entrants into the market and has managed to stay ahead of the competition because of it’s the annual sales of billion .

Pizza hut is a subsidiary of Yum Brand inc. the world’s largest restaurant company . all pizza hut store have their own distinctive roof it shaped like a hut . pizza hut is split into several different restaurant format , they have the original family style dine in location, store front delivery and carry out location , and hybrid location that offer carry out , delivery and dine-in option .

Pizza hut also has a number of other business concept that are different from the store type .like pizza hut ‘Bistro’ location are red roof which offer an expanded menu and slightly more upscale option . ‘pizza hut express’ and ‘the hut’ location are fast food restaurant that offering limited menu with many product that is not found at the traditional pizza hut . these type of store are often located with the sibling partners of pizza hut such as KFC ,Wing street, and Taco bell .

The oldest and continuously operating pizza hut in the world is located at Manhattan Kansas in a shopping and tavern district known as Aggie ville near Kansan university .

On 2004 pizza hut unveil the new concept and they called it as ‘Pizza hut Italian bistro’ and they were also unveiled it at fifty location nationwide , that bistro is similar to a traditional pizza hut , except that new Italian twist

In north America ,Pizza hut sell ‘‘stuffed crust’’ pizza with the outer most edge wrapped around a cylinder of mozzarella cheese ; there was also formerly a crust that was not thick as Pizza hut’s pan pizza and not as thin as its thin crust This crust was used on the full House XL pizza and discontinued last 2007 . Frequently pizza hut experiment new products but once it is not successful they discontinued it . .

On may 09,2008 pizza hut created their biggest pizza ever the Panormous pizza They also introduced in 2009 the stuffed pan pizza . Pizza hut is also one with the large market share and strong network and has become a market leader in the United kingdom .

Pizza hut is known for its brand name the “pizza hut” itself and also because it is specialized in the American style pizza . that till to date no other pizza restaurant has been able to compete . pizza hut is known for its innovative pizza’s .

The marketing of the company is one of the strength of the company actually it is considered as one of the best marketing approaches because the company is able to market any idea and they have a lot of style’s when it comes to marketing .

Pizza hut is popular because they have a lot of media partners and television advertising that they are using to attract and get the attentions of people of various age. More costumer mean higher percentage in sale that leads to pizza hut to have a greater profit . that why the company have a huge market share .

One of the strength of pizza hut is that they faces very low competition . even they have strong competitors like Domino’s pizza , pizza hut has an advantage because of their strong network , restaurant outlets and delivery .

And pizza hut inc. has differentiated their product and has a large Number of loyal customer around the globe .

WEAKNESSES

Some of the loyal costumer of pizza hut may feel that there is a decline of satisfaction and they think that other pizza chain and restaurant are offering much more services and offer much better taste of food .

Aside from that there are more weaknesses that pizza hut had when it comes to business and that is the internal conflict within the company as there process are computerized and centralized . this has lead to high turn Over as well as de motivation of staff.

When employee are fed up or feel that they are not motivated within the company their performance as a worker would suffer . An internal conflict with the employees problem within the company is the reflection of poor communication between the staff and the one who manage the business and we called it as “bad Management’’

This problem may have a negative effect or drawback on the company and it may affect the future business .

OPPORTUNIES

The company can open a new pizza hut restaurant in different countries and gain a huge market share all over . this give to the company opportunities to develop and grow its country .

Emerging market has a significant impact , so an analyst should put more weight into it, because emerging markets will have a long term positive impact on the entity which add to its value .

Today a lot of people are now concerned about their health and pizza hut can meet that need and demand because The company is now also come up with the innovative pizza’s new flavor and recipes with different types of crust and size they are also introducing new , healthy and fresh item related to pizza that will surely people will love to eat

Pizza hut have their a list of different payment option upon delivery of the pizza being limited to cash only would limit the company to proceed the transaction. This will give the company an opportunity to make more money through different approaches.

The pizza hut would bring also the opportunity to the sport season because they bring the people together to watch the sport games that come on . pizza hut has a business model that caters to their costumer on these many different occasion. Because whenever there is a basketball or volleyball game costumer like to have a food to delivered , this gives pizza hut an opportunity every event .

THREATS

Economic slowdown keeps consumers from buying thing or food as they did before. this poses a threat to the companies such as pizza hut . the competition in the pizza industry is increasing , as costumer now prefer and looking for availability and affordability .

The rising of price of main ingredient could be threat for pizza hut inc , because it will have an impact on profit for the company . cheese is the main ingredients for the company and if the price of it get higher this would suffer the Companies profit.

Another threats is when credit card companies change their rate of transaction . like if the credit card company was going to increased its rate per transaction it may affect the companies like pizza hut because it will lower the profit margin .

Another threat is when it comes to vehicle because once the vehicle can have an accident where’s the employee car could break down during delivery this would hurt the Costumer service and give the company a bad impression and reputation for tardiness.

Gas priced increased is another problem because once the price of it get higher it will lower the profit of the company since it is a operating expenses .

DEFINITION OF TERMs

Dominance- the degree of inequality in market share distribution

Emerging market – a nation’s economy that is progressing becoming advanced , as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body

Entrants – a commodity that enters competition with established merchandise .

Panormous- biggest pizza with 16 slices

Profitability – a class of financial metrics that are used to asses a business’s ability generate earning as compared to expenses and other relevant costs incurred during a specific period of time .

Subsidiary – a company whose voting stock is more than 50% controlled by another company usually referred to as the parent company

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  • Date: 5 January 2017

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