Operation Management - Flexibility of Pizza Hut

Within concepts of operations management, flexibility is one of the most important components. But what is flexibility? It is to have quick response to different kinds of situation such as rapidly changing customer needs. Customers nowadays are becoming more and more demanding than they used to be, because of the improved economical situation, the pursuit of better lifestyle, etc. Take Pizza Hut as an example from the catering industry; see how its flexibility helps it outperforming its competitors.

Look at the menu, we can always find it keeps updating every month: with new choice of pizza displaying on the first page; this is to refresh and impress the customers that Pizza Hut always offer flavors for different customers.

On the next page there are many different combos and customers may have their own combination in these combos. They offer pizza with certain toppings and 2 to 3 pasta choices. On top of these combos, customers may enjoy a maximum of 2 special offered appetizers or drinks by purchasing any pizza; customers can get more food with at a relatively low price.

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For the pizza base, there are 5 different bases to choose from, which greatly enhance the customers’ experience in having the pizza; moreover, customers can choose to add more or take out the toppings on the pizza which makes the pizza even more customized. Pizza Hut offers a membership at the end of year to the customers who have spent over $500 in December. Using the member card when purchasing pizzas, customers can get certain points which can be accumulated.

Customers can use the points to exchange particular choices from the menu when doing the next purchase.

Next we will look at the staff arrangement. The shops are opened at 11:00, because nobody will have pizza for breakfast. They put more staff during lunch hour and some staff will leave before the dinner hours, plus, there is more staff during weekends than weekdays so the company is using the human resources in a more effective & flexible way. High flexibility can be a competitive advantage under changeable environment. Pizza Hut is demonstrating a flexible operation strategy to fight for the best in the industry.