Fast Food Giants: Pizza Hut vs. McDonald's

In 1958, Frank and Dan Carney had an idea for a great local pizza restaurant in Wichita Kansas. The small 25 seat restaurant only had room for 9 letters on the sign… the building looked like a hut… so 'Pizza Hut' was born! Fifteen years later, they opened the first UK restaurant and since then they have become the biggest Pizza Company on the planet. Today 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.

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 annum. Today Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkatta, Hyderabad, Pune, and Chandigarh amongst others.

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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 holds the record for the world’s largest pizza (six feet in diameter), which was baked and served at the grand opening of a Fort Worth, Texas Pizza Hut restaurant. Pizza Hut is fun, friendly and familiar '' it gives a sense of belonging, of comfort and an experience that allows friends and families to share a good time MARKETING STRATEGIES OF PIZZA HUT IN INDIA • Offering value food Employing economies of scale, Pizza Hut has made its offerings more affordable.

Its delivery offer of US$ 4. 4 for four personal pan pizzas has been very successful, helping it grows the business by 25 per cent.

They have recently introduced a range of vegetarian personal pan pizzas for US$ 1. 1. Most Pizza Hut restaurants are located in the metros and smaller metros. In taking long strides across the country, Pizza Hut is consolidating its position by opening more restaurants in the metros where it already has a presence as well as opening outlets in new markets. • Moving beyond metros According to company sources, Pizza Hut is moving beyond the metros and foraying into 12 to 13 new markets including Trichy Nagpur Bhubhaneswar, Thiruvananthapuram and Pondicherry to increase penetration.

Aggressive marketing and tie-ups with local and popular brands Pizza Hut has increased its visibility by launching a well-received TV campaign aimed at the young crowd. It has formed partnerships with recognized brands such as Nestle and Pepsi. It also holds regular promotional campaigns targeted at children and uses these alliances to offer packages during these campaigns. • Developing the local supply chain The local supply chain for Pizza Hut was developed by Yum! and currently 95 per cent of the ingredients they use are locally produced. They now import very few specialty items like pepperoni.

• International brand with an Indian heart Pizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the western state of Gujarat to cater to the Jain religious community, whose members prefer not to eat at places where meat is served. • Offering more than the international menu International food chains typically offer only a few localized products in other parts of the world. However, Pizza Hut’s local menu is as large as the international one.

According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavors. Th Tandoori range of pizzas, which was developed locally, has a menu mix of over 20 per cent. • Indigenous sourcing of raw materials Pizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a local company Dynamix Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese. The landed cost of imported mozzarella comes to US$ 3. 3 - 3. 5per kilogram. The domestic price, however, works out to US$ 2. 99 - 3. 1 per kilogram.

Pizza Hut is adding to the bottom line by localizing equipment as well as by paying attention to inventory replenishment, which has been reduced from 60 to 30 days. • FRESHIZZA Pizza-hut launched a new pizza with the new pizza crust `Freshizza. '. One of the main findings is that freshness of food is of prime importance to the Indian consumer. There are many households where food from the previous day is discarded, he said. India is the first market in which Pizza Hut has launched this product.. For Freshizza, each restaurant makes dough several times a day, he said. The price range starts from Rs 95.

It is available in medium and family sizes. MCDONALDS [pic] McDonald’s is the world’s leading food service retailer found by Dick and Mac McDonald of Manchester, New Hampshire. They opened a hot dog stand called the Airdrome at the airport in Monrovia, California. But in 1948 after noting that almost all of their profits came from hamburgers, the brothers closed the restaurant for several months to implement their innovative "Speedee Service System", a streamlined assembly line for hamburgers when the restaurant reopened it was selling only hamburgers, milkshakes, and french fries.

At 15 cents, the burgers are about half as expensive as at standard diners, and they were being served immediately. The restaurant was extremely successful, and its fame spread by word of mouth. It was at this hour renamed from Airdrome to Mc Donald. Today it is one of the largest food retail chain across the world having more than 30,000 restaurants in 119 countries serving 50 million customers each day. In India, McDonald’s is a joint-venture company managed by two Indians. While Amit Jatia, M. D. Hardcastle Restaurants Pvt.

Ltd. owns and spearheads McDonalds in west & south India, McDonald’s restaurants in North & East India are owned and managed by VikramBakshi’s Connaught Plaza Restaurants Private Limited. Celebrating over 12 years of leadership in food service retailing in India, McDonald’s now has a network of over 155 restaurants across the country, with its first restaurant launch MARKETING STRATEGIES • Local Sourcing Is Key for Truly Indian Products: McDonald’s India is committed to sourcing almost all of its products from within the country.

For this purpose, it has developed local Indian businesses, which can supply them the highest quality products required for their Indian operations. All their suppliers are HACCP certified. • Respect for the Indian Customs and Culture: McDonald’s worldwide is well known for the high degree of respect to the local culture. In line with its respect for local culture, India is the first country in the world where McDonald’s does not offer any beef or pork items. Special care is taken to ensure that the vegetable products are prepared separately, using dedicated equipment and utensils.

• An Employer of Opportunity: McDonald’s India is an employer of opportunity, providing quality employment and long- term careers to the Indian people. The average McDonald’s restaurant employs 60-80 people from crew to restaurant manager. McDonald’s world class-training inputs to its employees can be seen in the present close to 4000 employees currently in India. • Quality, Service, Cleanliness & Value: The USP of McDonald’s is the Quality, Service, Cleanliness & Value for money which means they focus on providing our customers high quality products, at an affordable price.

It is the guiding force behind its service to the customers. McDonald’s menu is priced at a value that the largest segment of the Indian consumers can afford. McDonald’s does not sacrifice quality for value — rather McDonald’s leverages economies to minimize costs while maximizing value to customers. • Community Partnership: McDonald’s believes in giving back to the community it serves. Wherever McDonald’s goes, it becomes a part of the community it operates in and contributes towards the development of the locality.

For example, McDonald’s has introduced the concept of ‘Litter Patrols’ — McDonald’s employees go around the market every day, picking up garbage left behind not only by customers from McDonald’s restaurants but also by other visitors in the area. The result is a cleaner neighborhood. COMPARSION BETWEEN PIZZA HUT AND MCDONALDS. • Scale of operations McDonald's India is planning to increase its restaurants from 105 to 155 this year. The company is also looking at recruiting 1,500 freshers from the Indian Institute of Hotel Management (IIHM). McDonald's has 61 outlets in North India that are run as 50:50 joint venture between McDonald's International and Connaught Plaza Restaurants.

PIZZA Hut plans to increase the number of outlets to 135 from the current 98, and expand its presence in smaller towns • Serving Meals Pizza hut has started their strategy offering to their customers 4 mini pan pizzas for a specific rate. This however did not include the side orders and drinks . The pan pizza in all costs around Rs 200. Mc Donald’s introduced a concept of happy meals where one gets a burger, French-fries, a soft drink and a free toy. This was mainly targeted at children and is still a big hit. • Catering to the Indian Customer.

Mc Donald’s is serving all its world wide customers pork, beef and pepperoni. But when it entered the Indian market it realized that people don’t like these red meats. Due to which it changed its menu and has served chicken and fish instead of it. Pizza hut serves all types of meat however respecting the feelings of their Indian Vegetarian customers they opened up 2 outlets of All-Vegetarian-Restaurants in Ahmadabad and Surat. • Catering to the Indian taste To cater to Indian tastes, the company launched tandoori pizzas. On the other side Mc-Donald’s however stuck to its base-menu.

However it added Indian spices and condiments to appeal to Indian taste buds and has introduced burgers like McAloo Tikki and McKebab. • Pricing of menu Pizza Hut has priced the menu as per the size and the toppings on the pizza. It meant the larger the pizza or more the toppings the costlier the pizza and smaller the size and minimal the toppings the pizza is cheaper. Mc Donald’s has ranged its Burgers starting at a reasonable price of Rs 20 to 75. It also has sizes like small, medium, and large for most of side orders, drinks and deserts. • Help to the Society

Mc Donald’s has Started Litter Patrols where the employees clears out the garbage . This is not only done for the restaurant but also for the entire market place where the restaurant is situated. McDonald’s tied up with the Nalanda Foundation for a period of three years to generate funds for the education of the underprivileged Girl-Child KFC and Pizza Hut have launched the World Hunger Relief Campaign in association with the World Food Programme (WFP) to raise wider awareness about hunger and support the WFP to provide meals to children in schools in order to help ensure that they complete basic education.

• Another Pizza Hut plus you can't get at McDonald's: delivery. Conclusion While the menu choices differ, Pizza Hut and McDonald's both enjoy their respective places as fast-food giants of the restaurant world. Each chain name has become as household word, and, with locations worldwide, provide convenience accessible to almost everyone Pizza Hut versus McDonald's in a battle between two elephants, it is the ground that suffers. In this Pizza Hut versus McDonald's affair, the consumers or customers are in the best and most excellent position to judge.

Pizza Hut and McDonalds are two worldwide fast food chains or restaurants. No doubt, they are both great outfits that have done a lot to improve their services in order to meet the taste and standard of their customers and consumers. However, customers or consumers of both fast food chains might just have a likeness for these chains due to some personal reasons. The "taste and value" used to compare both restaurants are generic.