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0 Executive Summary During the past four decades Pizza Hut has built a reputation for excellence that has earned the respect of consumers and industry experts alike. Building a leading pizza company has required relentless innovation, commitment to quality and dedication to customer service and value. The qualities of entrepreneurship, growth and leadership have characterized Pizza Huts business through more than four decades of success. Through the strength of its heritage, its culture and its people and franchisees, Pizza Hut looks forward to more success in future. Every organization has objectives, in order to achieve these objectives different corporate strategies are set. Targets pass down the hierarchy depending on the nature of the business. Therefore, in order to achieve the objectives, management decides on different strategies. These strategies are divided into many sub-parts and are useful for the running of the business. The employees and the management know what they have to achieve through the targets which have been set to them and the strategies they have adopted help them know the way they will achieve the objectives. Similarly, Pizza Hut has different targets set to them and they have adopted different strategies to successfully achieve the targets set.

This report attempts to analyze about Pizza Hut. This report critically analyzes the strategic objectives, values, policies and practices on quality standards and consistency in quality foods of Pizza Hut. This report also provides quality audit and gaps in the quality standards, existing practices and recommendations for future actions.

2.0 Company Overview Pizza Hut is one of the flagship brands of Yum! Restaurant Int. which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. It is the worlds largest pizza chain with over 12,500 restaurants across 91 countries.

Pizza Hut was started in 1958, by two brothers Frank and Dan Carney in Wichita, Kansas. They had the idea to open a pizza parlor. They borrowed $600 from their mother, and opened the very first Pizza Hut. In 1959, the first franchise unit opened in Topeka, Kansas. Almost ten years later, Pizza Hut was serving one million customers a week in their 310 locations. In 1970, Pizza Hut was put on the New York Stock Exchange under the ticker symbol PIZ.

In 1986, Pizza Hut introduced delivery service, something no other restaurant was doing. By the 1990's Pizza Hut sales had reached $4 billion worldwide. In 1998, Pizza Hut celebrated their 40th anniversary, and launched their famous campaign "The Best Pizzas Under One Roof." In 1996, Pizza Hut sales in the United States were over $5 million.

The first Indian outlet was opened in June 1996 in Bangalore. In India, Pizza Hut has 139 restaurants across 36 cities. Pizza Hut has been voted the best family restaurant for the second year running at the 2007 Tommys Parent Friendly Awards. "Pizza Hut is known for quality, innovation and category leadership.

3.0 Vision, Mission Statement of the Company The vision of the Pizza Hut is, to make the customers know about it can serve the all types of food, which customers desired to have, can be make in minimum or short time, which enables its reputation as a fast food chain restaurant in the world. In addition, to improve the well being of our customers, community and people connected to our enterprise. Its mission statement is To be the best pizza for every pizza occasion, Alone we are delicious, and together we are YUM! Its both vision and mission statements are totally customer satisfaction oriented.

4.0 Analyzing of Strategic Objectives of Pizza Hut The marketing strategy of Pizza Hut is very simple, we want to satisfy our customer by offering them the best food and service. Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back program. These were implemented to make sure their customers were happy, and always wanted to return.

The other two strategies followed by Pizza Hut are C.H.A.M.P.S (Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed). This strategy has applied in every outlet of Pizza Huts. These are the basic things which the customers seek at first when people come to eat at branch. Another strategy is 3Fs (Fun, Friendly and familiar). There are lots of places for kids to play in the Pizza Huts outlets where kids can get more fun and customers service for their parents are excellent and friendly. These two strategies have really helped Pizza hut to evolve out as a market leader with a competitive advantage.

Another 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, like in UK there are lots of ethnic minority groups from different region. Pizza Hut offers wide range of menu for the different taste people according to their interest and likes. Furthermore, the reason to become popular internationally is it offers different types of food according to region and people taste. In India, Pizza Hut has clearly established itself as a brand with an Indian heart. Also it offers an extensive range of vegetarian pizzas for vegetarian customers. Besides, it was the first pizza chain to open a 100% vegetarian restaurant internationally.

Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited for the increasing number of people in international market. These products like Chicken Tikka, Spicy Korma, Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian, the proprietary Pan Pizza and Stuffed Crust. Pizza Hut offers in their menu the option of a complete meal. It includes appetizers, a Salad Bar - where the customers can make their own fresh salads, a range of soups, pastas and desserts. Pizza Hut has a unique tradition. A bell hangs at each Pizza Hut restaurant, which is rung by customers who as they leave wish to thank the servers for yet another memorable visit.

4.1 Strategies followed by Pizza Hut

This strategy forces to look on competitors for new methods of increasing their customer bases. Many pizza chains decided to diversify and offer new non-pizza items such as Chicken Alfredo, Italian cheese bread etc. The current trend in pizza chains today is the same. They all try to come up with some newer, bigger, better, pizza for a low price. Offering special promotions and new pizza variations are popular today as well. For example, chicken is now a common topping found on pizzas.

In the past, 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 diversification of the products they offer. Pizza Hut is always adding something new to their menu, trying to reach new markets. For example, in 1992 the famous buffet was launched in Pizza Hut restaurants worldwide. They were trying to offer many different food items for customers who didn't necessarily want pizza. Another strategy they used in the past and are still using is the diversification of their pizzas. 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 its a whole new product. For example, let's look at some of the pizzas Pizza Hut has marketed in the past. In 1983, Pizza Hut introduced their Pan Pizza, which had a guarantee of being ready to eat in 5 minutes when dining at Pizza Hut restaurants. In 1993, they introduced the "Bigfoot," which was two square feet of pizza cut into 21 slices. In 1995, they introduced "Stuffed Crust Pizza," where the crust would be filled with cheese. In 1997, they marketed "The Edge," which had cheese and toppings all the way to the edge of the pizza. Currently, they are marketing "The Big New Yorker," trying to bring the famous New York style pizza to the whole country. (Thompson, 2004)

4.2 Competitive Advantage of Pizza Hut If you dont have a competitive advantage, dont compete -By Jack Welch, GE

Organizational strength or abilities, developed over a long period, that customers find valuable and competitors find difficult or even impossible to copy. (Cecil C. Bozarth, Robert B. Handfield, 2008) Competitive advantage is another big strength of Pizza Huta, it is the fact that they have a full service restaurant as well as delivery services. Most of Pizza Hut's competitors do not have restaurants. Because of the restaurant, Pizza Hut can market to different segments that other pizza chains cannot. For example, Pizza Hut can market to families much easier than Domino's or Little Caesar's. Pizza Hut offers a sit-down, conversational type restaurant where families can take their children for birthday parties for example. Pizza Hut's broad selection of products also makes it easier for them to market to different market segments.

4.3 Factors for Success Pizza Huts

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.

Aggressive marketing and tie-ups with local and popular brands

Now days, Pizza Hut has increased its visibility by launching a well-received TV campaign, and hoarding board at busy streets in urban area, to be aim for the young crowd and familys package. 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 Its new campaign with developing the local supply chain for Pizza Huts is increasing by Yum! It is currently using 95 per cent of the ingredients which are locally produced. They now import very few special items like pepperoni, blue cheese, and smoked salmon from international market.

Offering more than the international menu

International food chains typically offer only a few localized products in other parts of the world. However, Pizza Huts local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very rich, and hence it has added many items in its menu. For example; 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 Dynamics Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese. The landed cost of imported mozzarella cheese price is higher so, it uses the domestic product to minimize the costs. 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.

5.0 Total Quality Management (TQM) TQM is the most important part for the food chain restaurant 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 US. This department has the task to implement quality standards and know whether they are achieved or not.

5.1 Quality Audit and Control Process Preparations The preparations is the process of getting things ready, that will help to carry the out the operations in store. This involves activities like defrosting of dough, starters and cheese. So that can be used for the next day operations. Pizza Hut shift manager checks whether the preparation for the following day operations is ready or not, otherwise that will cause difficulty, time consuming or shortages of items that are necessary for the conversion process. The preparation is done on the basis of the next business day forecast.

Make table The job of the make table is to make orders that are received from customers and appears on the micros system. Orders work on FIFO system, unless there is any collection customer. It is because the collection time is 10 to 15 minutes as compare to the delivery which is 30 to 35 minutes.

The preparation of make table is a critical part for the pizza hut. The right level of products, ingredients condiments and sauces are prepared to the specifications. That is to be considered vitally that the make table items character, aroma, freshness, and taste are appropriate and kept at right make table temperature between 2 and 5 degree centigrade According to the set bench marks for the topping rules it should be implemented in the same manors as mentioned in the pizza hut manual guide.

Make Table Standards There are set rules for the pizza saucing and cheesing, if not followed then it can result in soggy or salty pizza. This will cause dissatisfaction of the customer.

Cut Table The job of cut table is to receive the pizza and cut them according to the order guest check, and pouch them accordingly. The special consideration is to be paid when pouching that the right order should go with right guest check. If it goes with wrong order then it breaks down the flow of the cut table and can cause the mess up of the customer.

Dispatching The dispatching is tricky and critical work specially when there are more orders on the shelves and less drivers. The geographical areas are divided in to the zones according to the post codes. The Guest checks print with address and the post code. So the shift managers sharpness is to dispatch the deliveries that can be take two at a time. This effort saves time and effort.

Usually it take less than 30 minute to deliver the order to the customer on his/her door, but the timing standards may vary according to the availability of work force and the level of peak that business receive in particular moment of time.

6.0 The Process Map

The flow of order making and delivery to the customers of Pizza Hut Source: Adapted from Mapping Business Process Cecil C. Bozarth, Robert B. Handfield (2008)

7.0 Quality Assurance The products made at Pizza Huts are quality assured. The quality throughout the supply chain outlets rely with the overall team. This is done by setting rigorous standards during product development. There are quality standard steps and methods with recipe of all international items which are in the menu. In order to ensure the standards, there is regular auditing and monitoring system in place. A customer can get the same taste of "The Big New Yorker," pizza everywhere on its outlets. The one of

the regular system to check quality is CHAMPS excellence review, quality assurance is achieved through the complaints monitoring system and their corrections through available remedial methods.

8.0 Quality analysis (Parato analysis) Pareto Analysis is a statistical technique in decision making that is used to identify the most common error and mistakes on the organizations working environment. It uses the Pareto Principle the idea that by doing 20% of the work you can generate 80% of the benefit of doing the whole job. Or in terms of quality improvement, a large majority of problems (80%) are produced by a few key causes (20%). This is also known as the vital few and the trivial many.(projectsmart, 2010) In the case of Pizza Hut we can apply this quality tool while handling the products on customer hand. Even, employees dont know about what mistake occurred until customers do not complaint. Sometimes company itself should know and try to correction the possible mistakes which can affect all the service bad even a mistake was tiny. Thus, it can be use as a technical sense to try and improve the process by eliminating defects So, suppose the customer complaints for a Pizza, and possible cause of complaints are;

We can seen Ingredient Missing and Wrong Order would be the two biggest problems that this particular restaurant is facing. So, it can be reduce to focusing on such problem first then other in order to improve Pizzas quality and customer satisfaction. Working on over or undercooking and bad tasting would still leave the majority of the problem in place

9.0 Benchmarking of Pizza Hut (ISO 9004:2000) The fundamental purpose of the quality management system is to demonstrate the organizations ability to consistently meet customers requirements and focus the organisations quest for continual improvement. What the international standard for quality says is the organization need to demonstrate its ability to consistently provide product or services meets customer satisfaction. This is the essential requirements of a quality management system of international standard ISO 9001:2000. This type of management system measures the customer satisfaction. (Hill, self and roche, 2008) Pizza Hut is very popular and renowned chain restaurant for Pizza, it provides itself on quality, value, service and cleanliness. Pizza Huts quality, service, value and cleanliness and convenience are amazingly consistent in the fast food business. Pizza Huts is consistent for everything like food, packaging, service, rest room, design and uniforms to the look and fill its restaurants. Examining the Pizza Huts each and every product and service delivery system, the many interesting parallels with ISO 9000 discloses. First of all, the quality comes from extensive quality system based on procedures and work instructions. To ensure the about the quality system training and coaching are used. Secondly, for service of Pizza Huts crew members are extensively trained in appearance and how to service customer. And cleanliness, Pizza Hut is uniformly clean. Its s rest rooms have critical quality characteristics identified, a most of the restaurants have quality audit check book on the back of the door. It is cleans hourly by the crew member and the shift supervisor checks quality and signs off on the work. 10.0 Customer Perception and Expectation For Pizza Huts key factor affecting products and service success is customer perception. Lots of potential revolutionary products have failed due to the inability to build a healthy perception about themselves in the customers mind. The internationally renowned Pizza Hut brings certain perception for the customers. Target Segment A urban customer on the move What is Pizza Huts for them? (Perception) Great taste, quick service without affecting the quality and work schedule A family with children Teenager Enjoy weekend, a fun place to be for the children, Hangout/Dating with friends, and keep it affordable The expectation of the customers to the Pizza Huts is to be an ambient, hygiene and little sophisticated brand that respects their values. Actually, customers expect such type brand which

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should enhance their self-image. The research shows customers are strongly connected with the brand of the products. However, in order to fulfil the customer the customer expectation for variety of products with quality Pizza Hut has been success, and it has great scope for improvement. 11.0 Conclusion The operations management depicts the performance of each and individual unit that is participating in over all acceleration of the engine of business. The business may have sometimes low speed and high speeds. It highly depends on the strategies that the top management set for the business and the way the strategies are followed by the key components that run the actual business. The operations at Pizza hut have multifaceted situations. The each component working in the process cycle of business plays equally important role to win the customer. However, if any one of the units deviating from the set standards will cause a variance in the performances as overall. Thus it is concluded that the success of the business is possible through collections of inputs from all the units participating in the conversion process

12.0 Recommendations To maintain the number one market position in Pizza market Pizza Hut should continue to offer a high quality product with higher price. Pizza Hut could revise all its unnecessary expenses increasing the advertising promotion in local radios and T.V. and more publicity. Then it can focus on some specific product. In the same way, another marketing strategy could be to start or increase the number of mailings to send homes. The Marketing Department will establish which areas and the frequency with which to send it. It could be very useful for Pizza Hut to edit a monthly "Pizza Hut Magazine" which will include news of the Restaurants and delivery units either Company-owned and franchisees, customers letters, games with prices, promotions of the month, etc. Another strategy could be to pay more attention to the senior citizen segment, because its number is steadily increasing and they have more buying power as well. They could join the "Pizza Hut Senior Club" specially created for them. This Club could organise activities, holidays in attractive places in States or abroad in collaboration with Hilton Hotels, organised monthly meetings, etc. To achieve this objective, it would be most appropriate to increase staff training to make all fully aware that they are working in the top Pizza chain. To continue maintaining this position the company needs them, needs their professional skills which they should try to improve everyday and needs their friendliness providing the best treatment to the customers (personal selling).

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13.0 Action Plan Pizza Hut has many targets, most of that have achieved in a given period of time. The time-period is mostly a year. Therefore, in order to fulfill the targets different strategies are adopted by Pizza Hut. It can be concluded that these strategies have been successful and there is flexibility in the strategies, as they can be changed with the changes in the market conditions as well as the targets. As I suggested to Pizza Hut it should produce high quality of product. Now days there are lots of people who want quality food from standard restaurant like Pizza Hut, McDonalds, KFC, Dominos etc. This strategy also needs to perform according to market research of future customers in local area. Now days there is vast competition in promoting about the new product differently in different medias, so for its new and high price product it should promote with discounts for first one month from its launching date. The targeted clients for this new action plan are especially the people with higher post like executive or manager level post or business persons or who earns more money. This action plan allows its customer to be loyal for anytime any program because it provides the actual and great taste of Pizza Hut. This action plan can offer to the customer through advertising on different medias or conducting campaign in schools or colleges. In this action plan it needs more investment on promotions and new materials for new product. The following action plan chart shows how to implement the action plan within 3 months. Actions Days 10 Analysis of Business plan Market research Funding source Product development Marketing Plan (4Ps) Product Launching Feedback Action Plan Chart for suggested plan for Pizza Hut 20 30 40 50 60 70 80 90

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14.0 Survey Questionnaires Q.1.Which is your favourite product at Pizza Hut?

Which is your favourite product at Pizza Hut?

Salads Desserts 6% 5% Plated Meals 10%

Pizza 32%

Flavouts & Snacks 14% Burgers 15% Sandwiches 18%

Q. 2. Is the product line in Pizza Hut adequate?

Is the product food line in Pizza Hut adequate?

I don't know 13%

No 35%

Yes 52%

Q.3. What are the main problem you faced at Pizza Hut?

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Not clean 5%

What are the main problem you faced at Pizza hut?

Small Space 15% Customer Service 32%

Price 19%

Long Queue 29%

Q.4. Which area do you think needs the improvement?

Which area do you think needs the improvement?

Fun 19% Area 20%

Menu 36%

Customer Service 25%

Q.5 What are the first thing that strikes your mind about Pizza Hut?

What are the first thing that strikes your mind Fun about Pizza Hut?
8% Price 12%

Cleanness 20%

Food 60%

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Referencing Lists Asbjorn Rolstadas (1995), Performance Management: A business process benchmarking approach, Performance planning to ensure achievements, published by chapman and hall, p 118-119 Cecil C. Bozarth, Robert B. Handfield (2008), Introduction to operations and supply chain management, second edition, Process Maps, Ch: 3, p 44-52 Cecil C. Bozarth, Robert B. Hand field, 2008, Introduction to operations and supply chain management, Ch 12, p 378 Hill, N.,Self, B. and Roche, G. (2008) Customer Satisfaction measurement for ISO 9000:2000, Oxford: Butterworth-Heinemann. http://www.projectsmart.co.uk/pareto-analysis-step-by-step.html [online] 06/08/2010 http://www.pizzahut.com/ [online] 06/08/2010 Thompson, A. et al (2004) Pizza Hut Multicountry Strategy in Fast Food,Strategy: Winning in the Marketplace

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