Pizza Hut Swot Analysis

Pizza Hut is an American restaurant chain and international franchise that offers different types of pizza along with side dishes plus (depending on location): pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is the world's biggest restaurant company with approximately 34,000 restaurants, delivery and carry-out locations, and kiosks in 100 countries. Currently based in Addison, Texas (a northern suburb of Dallas), Pizza Hut is relocating its headquarters to bequest Office Park in nearby Plano when the hire on its current building, which it has occupied since 1995, expires at the end of 2010.

BACKGROUND HISTORY The history of Pizza Hut is very interesting. Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Kansas. When a friend suggested opening a Pizza shop, and they agreed that the idea could prove successful and began in 1958 and borrowed their initial asset worth $ 600 to their mother, the brothers purchased some second hand machinery. The Carneys and Bender opened the first “ Pizza Hut” restaurant; on opening night, they gave pizza away to support community interest.

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The business started to grow and gainful.

They chose the name Pizza Hut since the sign they purchased only had enough space for nine characters and spaces. Additional restaurants were opened, with the first franchise unit opening in 1959 in Topeka, Kansas. The original Pizza Hut building was later relocated to the Wichita State University campus. The Pizza Hut business started to grow and profitable. What began in that small shop has since grown to include more than 12,000 shops worldwide in Pizza empire that spans more than 90 countries.

Dan and Frank Carney soon decided that they needed to have a good standard image.

The Carney brothers contacted Wichita architect Richard D. Burke, who designed the distinctive mansard roof shape and standardized layout. The franchise network continued to grow through friends and business associates, and by 1964 a unique standardized building appearance and layout was established for franchised and company-owned stores, creating a universal look that customers easily recognized. Pizza Hut is now a part of Tcicon Global Restaurants and operates using franchises. Tricon also owns the Taco Bell and KFC names, bringing fast food restaurants to all corners of the globe.

In 1982 added to their pocket is being part of the Pepsi Company that serves as a great deal and advantage for both of the companies. Eight years later, the company decided to introduce its delivery service to boost profits. It came up with the idea because half of all its sales were carry-out, and though many franchisees balked initially - fearing risk and change - these soon agreed. MAIN PRODUCTS Product refers to the very design you are planning. The object of pizza hut is to enroot the first aim with the funds available.

Pizza Hut sells pizzas connections four different sizes: personal (an individual serving), small, medium and large, though mightily stores have done away from with the small size. A range of toppings are available, plus "specialty" styles, including Meat Lovers, Pepperoni Lovers, Cheese Lovers, Veggie Lovers, Double Cheeseburger, Supreme, Super Supreme and the newly introduced Pizza Mia. The pan pizza has a thicker skin than most other commercially available pizzas . So their produce conceive sustain them to support augmenting their customers further to boost them .

They provide their customers with complete diet plan and healthy food is guaranteed. The nutrition plan also clearly tells diabetes patients can use what range of food at pizza hut. Over weight patients are also satisfied and the pizza with less cholesterol can be ordered. This encourages the customers to visit pizza hut rather than going elsewhere. As pizza hut has to boost its sales in the existing markets, so they the new food products are introduced in all branches line-by–line because all branches are operated in co-operation with one another.

Different products for different regions are also developed as there are choice differences. Pizza hut offers a long list of products and never afraid to offer new products like in Islamabad according to market they introduce the very first "Chapli Kabab Pizza" which was very healthy product by Pizza hut in this region. There are a lot many products according to different biological places. Like in India they have got there vegetable pizzas, which has a large market there but not the Cow Meat Pizza.

Pizza Hut targets upmarket products and a downscale consumer base Pizza hut strengths Throughout pizza hut being the biggest restaurant chain in the world, this clearly means they control their market, and can supply in new products, new pizzas. They have low struggle, although they do have competitors such as dominos pizza, however they have an gain over these as pizza hut are a restaurant as well as a take away unlike dominos pizza, and this means pizza hut may have more sales therefore more income, which may help pizza hut with any improvement need to the business.

Pizza hut has a huge market sector, attracting more customers meaning a higher percentage in sales, which may lead to better profits. Pizza hut weaknesses The customers are feeling that the agreement of the pizzas is declining. This may lead to low customer satisfaction and a reduction in customers and reliability in the market, this may guide to customers change to main competitor such because dominos pizza. While Novak said Pizza Hut’s growth into China is going extremely well, there are battle problems in New Zealand and Australia.

This therefore meaning they are losing money in places such as new Zealand and Australia, this could be due to their culture and lifestyle, maybe meaning pizza hut need to set up a more varied range of products to attract customers of all lifestyles and cultures. There are complex computer systems and internal conflicts from franchisees, this leads to de-motivation of staff. Lower the quality of products (pizzas), service to customers, and could lead to a lack of new ideas. There is a lack of organic pizzas, which will limit the target market.

Pizza Hut Threats Rising struggle of Pizza Hut as clients go for better convenience; this will lower the total of sales consumed by Pizza Hut as these sales are going to minor companies who are charging less. Rising cheese costs threaten limits, cheese is vital to the business as it is there main good, there for they are incapable to go without it, this may lead to Pizza Hut in time buying goods from abroad or buying cheaper brands. Threat from Dominos pizza, also from Mc Donald’s who have tried to introduce a new meal that is a Pizza called: McPizza.

So Pizza hut will have to get better or keep up the quality of the pizzas in order to compete with Dominos and McDonalds, to ensure that Pizza hut take over this market. They will also have to their prices down and this may lead to them buying good from abroad where it is cheaper. Opportunities Pizza Hut can introduce new Pizzas with unlike crust sizes and flavour. This may attract new customers with new taste and this may raise their sales. Pizza Hut has expanded into the Indian market menu and looks to the old favourite to boost sales in the US. Pizza Hut has targeted upscale products and a downscale consumer base; this will attract customers who are more willing to buy these Pizzas.

CONCLUSION According to SWOT analysis the Pizza Hut has many targets which it has achieve in a specific time period. The time period is normally a year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be concluded that these can be changed with the changes in the market conditions as well as the targets.

BIBLOGRAPHY > http://www. pizzahut. co.uk/ > http://fliiby. com/file/852264/7axfw8neqd. html > http://ivythesis. typepad. com/term_paper_topics/2009/12/pizza-huts-marketing-strategies. html > http://www. scribd. com/doc/13043996/PizzaHut-Report > http://www. freeswotanalysis. com/fast-food-companies-swot-analysis/15-pizza-hut-swot-analysis. html > http://books. google. co. uk/books? id=OqhS_C-I8tUC&pg=PA10&dq=pizza+hut+SWOT+Analysis&hl=en&ei=sGJPTPadHNL-4AaJ-qTvBw&sa=X&oi=book_result&ct=result&resnum=1&ved=0CC8Q6AEwAA#v=onepage&q=pizza%20hut%20SWOT%20Analysis&f=false.