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09/15/2012

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PROJECT REPORT ON PIZZA HUT

INDEX
S. NO
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

PARTICULARS
Pizza Hut ² The Introduction Ansoff Matrix Quality Management Perceptual Mapping Technological Changes Pizza Hut Service Quality Dimensions Chase Strategy SWOT 7Ps of Services Service Process Fishbone Servicescape Gap Model Research & Development Variability Maintenance & Materials Management Our Experience with Project

PAGE
3-5 6 7 8 9-11 12--13 14 15 16-18 19-20 21 22 23 24 25 26 27

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PIZZA HUT'S MISSION STATEMENT We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. LISTEN and more importantly. Pizza Hut is the world·s largest pizza chain with over 12. respond to the voice of the customer. Inc.R. 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 is known for its Good Quality Food (Hygiene) Brand Name Food worth its Price Good Service New Kind and Styles of Pizzas in its Menu. ACCOUNTABLE for growth in customer satisfaction and profitability. RECOGNIZE the achievement of others and have fun doing it.. Hyderabad. And Rewarding Careers in a Fun. and Chandigarh amongst others. Kolkata. A&W and Long John Silver·s under its umbrella. "I'll be back!" We are the employer of choice offering team members opportunities For Growth.500 restaurants across 91 countries In India. Safe Working Environment.E. Pizza Hut has 137 restaurants across 36 cities. Bangalore. which also has KFC. ‡ P.PIZZA HUT-The Introduction Pizza Hut is one of the flagship brands of Yum! Brands.L.A. Taco Bell. including Delhi. Advancement. Pune.S PASSION for excellence in Doing everything EXECUTE with positive energy and urgency. Chennai. . Every customer says. Mumbai.

 1972: Pizza Hut. when two college-aged brothers from Whichita.  1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka.  1977: Pizza Hut. for an undisclosed sum. Inc.  1968: International market entered with opening of Pizza Hut restaurant in Canada. But rather localized its menu as per Indian customers . Kansas. Inc. A Fortune 300 company. Yum! Brands Inc is the owner of the Pizza Hut chain worldwide.  2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in restaurants. listed on New York Stock Exchange under the symbol PIZ.  1997: Pizza hut opens a dine-in restaurant in Delhi. and opened its first restaurant in Bangalore. Taco Bell. In India Pizza Hut has not included all kinds of Pizza which it serves elsewhere. Frank and Dan Carney opens first Pizza Hut restaurant after borrowing $600 from their mother. stockholders overwhelmingly approve merger with PepsiCo. Inc. Yum! Brands owns Kentucky Fried Chicken.  2009: Pizza Hut offering baked fillings in the corner of the pizza LOCATION IN INDIA Pizza Hut entered India in 1996. Kansas.  1986:Delivery service.PIZZA HUT STORY  1958: The legacy of Pizza Hut began. is initiated  1996: Pizza hut comes to India with a dine in restaurant Bangalore that has special vegetarian pizzas. as a new concept. Pizza Hut. 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 annu. A&W and Long John Silver·s restaurants worldwide.  1969: Red roof adopted for restaurants.

A 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. Besides offering an extensive range of vegetarian pizzas. it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmedabad and Chowpatty. In having understood the pulse of the customers in India. where it offers a Jain menu sans all root-based ingredients. . Pizza Hut has clearly established itself as a brand with an Indian heart.

Thus they are into Service Development. Most recent one is the filling of toppings in the pizza corner. Therefore they are offering same customer a different kind of product. For this they take innovative ideas from Institutes like IHM ( Institute of Hotel Management) as well as motivate their workforce to come up with ideas. Pizza Hut is always trying to come up with some innovative way to make a pizza into something slightly different . Their marketing strategy in the past has always been to be first. One of their main strategies that they still follow today is the different things in their menu.different enough that customers will think it as a whole new product. .ANSOFF MATRIX EXISTING CUSTOMERS Consolidation/ Market Share Building NEW CUSTOMERS EXISTING SERVICES Market Development NEW SERVICES Service Diversification Development Pizza Hut has always had the first mover advantage.

.P. All the employees· backof-the-house i.e. Product quality and Speed.QUALITY MANAGEMENT To ensure stringent international bench-marks in the quality of products and services at all its restaurants across the world. Pizza Hut has a mystery shopper program in which an unknown official visits a restaurant and evaluates it on certain defined parameters called C. the kitchen assistants are trained accordingly. This department has the task to implement quality standards and know whether they are achieved or not. Hospitality.H.S. The shift managers have the task to observe whether the quality standards are met or not. This strategy is important in order to satisfy the CHAMPS. whereas there are a total quality management department at the main office in Gurgaon.A. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. they are kept under strict vigil This is the most important for a food chain like Pizza Hut. Different quality management staff is also there at Pizza Hut. Maintenance. They are given extra classes in order to meet the quality standards set by Pizza Hut around the world. Based on the report submitted by the official. the restaurants are rated and in the rare case of finding under performers. Accuracy. that stand for Cleanliness.M.

PERCEPTUAL MAPPING Perceptual mapping helps the Management to see the real picture of their own and their competitiors. KFC and McDonalds. . Services are plotted on X-axis and Pricing is plotted on Y-axis. In above map. But in 2nd quadrant. the services are moderate and they cost high than McDonald. McDonald provide high services but the food products are not expensive. Expensive and high services : 1st quadrant Expensive and moderate services : 2nd quadrant Inexpensive and moderate services : 3rd quadrant Inexpensive and high services : 4th quadrant The competitors for Pizza Hut are Domino·s. Likewise. Pizza Hut is providing High Services at very high price. That is why it is plotted in 1st quadrant.

Not only in machines and equipments but also in marketing they try to be updated. They use internet (they have VIP (very into pizza) club made where people can register their email. They have tie ups with company which provide them cold rooms.TECHNOLOGICAL CHANGES Now a day·s technology is improving so Pizza hut has to keep track with it or else its competitor may take advantage of it and move ahead than pizza hut.mobile phones) telemarketing. advertising for their promotional activities. mobile number where pizza hut provide them latest pizza news. This tie up is of exchange of machine after a period of 6 months if new kind of machine is made by them. . It makes sure that it uses baking and heating ovens that are new and efficient. discounts and offers at email .

future forecasting and decision making. Also in taking order they use the software provided by Devyani International Limited.Computer based customer data that is MIS (managing information system) helps in collecting customer data. When order is placed by the customer the employee enters his employee id and mark the table in which the customer is sitting. When a customer enters and takes table at pizza hut that table has certain number. the world's largest restaurant company with over 34. An average of 4 tables are handled by one single employee.000 restaurants in more than 100 countries. place his order and once he click on . daily transactions. DIL is a leading franchisee of YUM Restaurants International. Following are the screenshots telling the process of order in pizza hut.

.25 pm.yes time of order is displayed on screen. And in case the employee who has served is busy payment can be taken up by anyone else thereby not making customer wait at all. Also it is secured as no one else except employee can use this software.Like our table is numbered 114 and order is placed at 5. Its transparent as its in written form. When the employee clicks on order he has an option of adding or removing a particular toping One of the benefit this software has that any employee can take the bill as it·s feeded in software.

Packages Reliability 1. Employee Behavior 2.Employees guidance to customers 4.Waiting time for Dine In. Hospitality Responsiveness 1.Correct the mistakes and errors 4. Time for take away.Provide services on time 3. Ingredients of Food 5. Attitude 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .Response to customer 5. Approach to higher Management 3. when busy 2.Perform the services right and accurately 2. Freshness 6. Hygienic 7.Privacy 8.Employees behavior. Assurance 1.Courtious 4. Environment is comfortable 3.PIZZA HUT SERVICE QUALITY DIMENSIONS Scale 5 Strongly Satisfied 4 Satisfied 3 Neutral 2 Dissatisfied 1 Strongly Dissatisfied Pizza Hut Service Quality Dimensions Tangibility 1. Environment is attractive 4. Knowledgeable Employees 3. 6. Providence of special services 7.Employees Appearance 2. Timely home Delivery 5.

However it has to improve them on Responsiveness as it will help them to delight the customer. However data was collected from 56 customers.5/ 5) which tells that its customer are satisfied.Empathy 1. Kind behavior of employees 4. Sincerity 2. .2+ 3. As a result table gets vacant early and other customers can be served.2 (30 /7) Reliability ² 4. Solve the problems 3.23 on the scale of 5 ( 4.2 (21/5) Responsiveness ² 3. But we chose to take data from 42 customers only as some customers filled the questionnaire in a hurry and marked most 5 or most 1.5 (28/8) Assurance ² 4.75 (19/4) Empathy ² 4. Average data has been marked of 42 customers.5+4. They are improving on their que management system by already preparing themselves two hours before the peak hours.2 +4. This was the questionnaire through which we got above data. The keep things at the place and make their ingredients ready so that minimum time is taken to serve the customer. Unique Service specially for you 5 5 5 5 4 4 4 4 3 3 3 3 2 2 2 2 1 1 1 1 Therefore from the above information we analysed that on the scale of 5 Pizza Hut ranks Tangibility ² 4.75+4.5 (18/4) And a total Service quality they score 4.

so that the customers have food as early as possible and their table gets vacant early so that more and more customers are served. Keep lemonade syrup ready so that they just have to add 7 up when the customer ask for a Lemonade. 4. All team members are prepared before peak hours with vegetables required for toppings. This they do. They keep things ready in the line. In normal case they provide the pizza making time of 10 ² 14 minutes. 2. . During peak hour they provide the pizza making time of 15 ² 20 minutes. They follow PREP strategy for peak hours. While there cycle of making one pizza is only 7 minutes.CHASE STRATEGY OF PIZZA HUT At the peak hours they prepare themselves few hours before 1. They be ready with different patties ( pizza base) 3.

Food worth its Price: Employing economies of scale. Weaknesses Que during Peak Hour They advertise very less Fewer Outlets: Their outlets are not spread all over the city as compared to other competitors. Brand Name: Pizza Hut is a franchise of Yum Restaurant which has its outlets worldwide. courteousness of employee. Good Service: The provide good service in terms of timeliness of pizza. Opportunities Pizza Slice: They are one of the best pizza makers.SWOT ANALYSIS Strngths Good Quality Food (Hygiene).All the ingredients except local vegetables are provided by Yum Restaurants through their Restaurant Support System. Pizza Hut being in market for a long time can cash on this opportunity Low Calorie Pizzas in their menu Threats Competitors like Dominos. taste of pizza etc. Housewives are interested in making Pizzas & other Fast Food at home. This has been started by Sbaro ² one of its competitor. Pizza Hut has made its offerings more affordable. Sbaro . . knowledge of employees. All other inputs are according to the quality standards provided by them. They have starting range of Pizza with just Rs 75 and individual serving pizza with cold drink for Rs 99 only. They provide pizza before time. In their take aways they can start with pizza slices. their staff are scattered around near all the tables so that incase the customer wants to call pizza boy they just have to wave. This will attract people with small budget as well as those who wish to try pizza hut.

Pizza Hut will be able to sell two products together at a single price to suggest a good value. Pizza Hut sets a high initial price for its products to send a signal to customers that its products are quality and the service is excellent. a range of soups. this strategy will emphasize product and service quality. Over the years Pizza Hut has also developed and successfully introduced a range of products especially suited to the Indian palate. Different groups of customers are willing to pay different prices for the same product. It includes appetizers.where the customers can make their own fresh salads. the proprietary Pan Pizza and Stuffed Crust. Pizza Hut has come to become synonymous with the ¶best pizzas under one roof·. Spicy Paneer and the Masala and Tandoori pizzas have been a tremendous success. Pizza Hut is committed to providing uncompromising product quality. These products like Chicken Tikka. bundle pricing will be used. A critical factor in Pizza Hut·s success has been its unique dining experience. thus making it a destination product ² which everyone seeks. innovate and serve the finest product the industry has to offer.7 P·s OF SERVICES PRODUCT Worldwide and in India. What has also given Pizza Hut a competitive edge is that in addition to an extensive range of internationally renowned pizzas like The Italian. This is because at Pizza Hut the belief is that every pizza has its own magic. Crewmembers at Pizza Hut strive each day to provide ¶customer mania· .. offering customers the highest value for money and giving service that is warm. pastas and desserts PRICE In the past. a Salad Bar .the kind of service that ensures that every visit of the customer is a memorable one. in India the menu offers the option of a complete meal. while setting standards for others to strive to replicate. It is this belief that has ignited the passion to create. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the competition. Spicy Korma. Pizza Hut can sell "The Extreme" to the customers who will pay the higher price to be the first to buy and also to the bargain hunters Finally. Pizza Hut has successfully used the high/low pricing strategy when setting the retail price of its products. Both Pizza Hut and the beverage Mountain Dew are Pepsi subsidiaries. friendly and personal. but also promote frequent sales to lower the price below them. .

and encourage repeat or greater usage by current customers. and the order is delivered to the customer's home. One of Pizza Hut's largest competitive advantages is its restaurant style facility. . Pizza huts try's to attract the younger generation as their main market segment. place an order. salads. and sandwiches in a fun. Customers can call Pizza Hut ahead of time. and either leave with the order or eat at the restaurant. Customers can go to the nearest Pizza Hut. Customers can now go on the Internet and place an order. These are the strategies Pizza hut is using for its marketing. and order without having to disclose any credit card numbers. The first method of distribution used by Pizza Hut is delivery. place an order. The direct channel is successful when there is an extremely large market that is geographically dispersed. Pizza hut uses many promotional strategies. This promotion is also distributed mainly by mail (VIP members). The third method of distribution is! online ordering. Customers all over the country will be able to order "The Extreme" by one of the three distribution methods. Apart from this Pizza Hut is using intense marketing strategies they are also giving ads in magazines. Pizza Hut uses three different methods of selling its products directly to the market. The main promotion is a coupon to purchase. They are using billboards on main stream places to get there customer. Advertising camping will creates awareness of the products in our target markets. stimulate demand. The direct channel is also useful when there are a large number of buyers. Another method of distribution is for customers to dine-in. family atmosphere. They are also distributing door to door brochures to capture more and more customers. DISTRIBUTION The type of distribution channel used by Pizza Hut is the direct channel. Pizza huts also using marketing techniques. Pizza Hut offers a clean place to sit down and enjoy the variety of pizzas.PROMOTION The objectives of promotion are to introduce a new product. The market coverage for "The Extreme" will be nationwide. change the short-term behavior of the customers. but a small amount purchased by each. download any special coupons. This method is useful because it allows customers to view the entire menu. but also by fliers on college campuses around the country in order to reach the target market.

PEOPLE Here the job design is not the most difficult task to do. For this the Management conducted the training process for the new employees.pizza hut do not follow any kind of hierarchy . we came to know the criteria of selection. how to take orders and basically how to communicate with customers and make them happy by their services. all the employee is at the same level . and pizza hut always try to upgrade with changing envierment and modernization is key of success of the pizza hut. After talking one of the employees in Pizza Hut. she was only 10th passed out. that is. PROCESS The design of the process of the pizza hut is very efficient . Also there is no specific requirement for recruiting process. The only factor they were considering on the communication skills. Since the communication is the most important factor between the customer and employee because the whole process is depended on giving the orders for food. how they communicate with the customers. The Training is given for total 5 days. Out of 5 days. The girl was from west India.pizza hut has a very prescribe and well known process by adopting various technology software which help them to upgrade their supply management and also manage their crowd of customer efficiently. . PHYSICAL EVIDENCE The ambience of the pizza hut is good enough to catch up the people .they provide a very good dining experience with high quality of atmosphere in terms of there physical evidence. After this we it was confirmed that there is no proper requirement of the educational background. they have 3 days for kitchen training and other 2 days in the main dining.

SERVICE PROCESS .

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Pizza hut always try to have customer satisfaction on priority and if there customer are not satisfied.FISH BONE Fish bone is a cause and effect diagram to identify potential cause of problems. FISH BONE DIAGRAM OF PIZZA HUT UNSATISFIED CUSTOMER . These causes can be well explained by the fish bone diagram. what are the main cause of unsatisfaction.

The pizza is made in many flavors as per customers choice. the uniforms are also important part of their service environment. pizza (veg & non veg). ambiance. The management of Pizza Hut are really strict with their planning and implementing those plans which they working on. Lemonade. Pasta. . cleanliness. So apart from the ambiance. Background Music. the ambiance plays a very important part. In pizza hut. Flow of events that are designed to produce the necessary SERVICE ENVIRONMENT : Evidence: Whole Ambiance. Garlic Bread. In pizza hut. the customer will have a very negative impact on him and may be do not bother to place order. Core performance purchased by the customer. It is the environment. background music that attract customers to eat and to feel good about the whole process of entering the Hut and living the Hut. Cold Drinks. SERVICE DELIVERY : planning your work and working your plan. It means in what manner the services are being provided to customer. These products can be seen & touched. Staff·s uniform is also very major part of their environment because if their uniform are not good enough. Staff·s Uniform. SERVICE PRODUCT: outcome. Salads.SERVICESCAPE It includes Physical product: the product of the company which is transferred to customer. there are various products that were transferred to the customer like.

GAP MODEL A Gap Model defines the various gaps or wrong understanding or lack of sufficient knowledge within the Company. In Pizza Hut. This gap arises when the services are not provided as promised. during day & night and at weekends. Generally a single pizza took 7 minutes to get prepared but at peak hours the service provider took 3 times more than the usual time. Due to these Gaps the company may face huge loses and thus low market share. GAP 4: The gap between Service delivery and external communication to customers. Therefore. That is. we conclude on two major Gaps on hand. At this time the waiting time for the food to come is quite big. the objective of the management is to demolish all the gaps on the surface of the company. This gap arises whenever they have peak hours. In order to deal with the Gaps of Pizza Hut.199 but the actual cost of that pizza is more than 199 after including VAT and other taxes. what Pizza Hut is promised to their customers are not providing to them which leads to the formation of this Gap. that is. Hence this is the case of what time customer expected for his meal to be ready and what the management thought of time to prepare the meal. for example. . GAP 1: The gap between customer expectations and Management perception of customer·s expectations. in their advertisement they talk of Pizza in just Rs.

Pizza. pasta. Now it has come up with another new pizza with Golden Cheddar melted on the top and a tempted filling baked into the edge. Pizza Hut was the first one to come up with thin crust pizza and corner filled with topping. It started with thin base pizzas. This differentiates it from other pizza making restaurants. Pizza Hut provides same Product. But keeps on doing minor variations in it. By this it offered a new variety in pizza which is comparatively lighter to eat than others. In this they have not only garnished pizza with veg or non-veg toppings but also its base with some filling (They have advertised it by saying that you can enjoy pizza backwards now). ice creams and drinks is a core responsibility of Yum itself. However it encourages its employees also to come up with new recipes and reward them for the same. They take ideas from hotel management institute(Institute of Hotel Management) .RESEARCH & DEVELOPMENT As we told that Pizza Hut is a brand under Yum therefore any research on making of new types of pizza. Under this it has reduce the weight of its Dough but kept the size of its pizza the same.

When the customer enters employee have to say ´Hi Mam /Sir. When we refer employee by their name they feel respected. This was quite offending as he disturbs the customer in between when he is chatting.µ When pizza is ordered they say ´Pizza will take 15-20 minutes. whether we want something else . PVR Saket ² Employee was coming too many times to ask how good food is. Drinks will be served now (if ordered). In Pizza Hut. Medium and Family Size. That means the weight of Dough of Personal Pizza and that of Medium Pizza is different (weight not disclosed as it·s their internal information) Variability at two pizza hut outlets: while we visited four pizza hut outlet. Like in Pizza Hut. This training is not provided at pizza hut outlet but rather at a cities head office. The employee·s courtesy was different.Every new employee undertakes the training of 5 days which includes 3 Days Kitchen Handling and 2 days Customer Dealing(Hospitality). Therefore we think that a common training must be provided to management staff so that such a variability doesn·t exist in customer experiences at Pizza Hut .We were told the name of the employee who would be serving us. He just served what he was told by us. Could I take the menu µ DOUGH: The different sizes of pizza are having different dough weight so as to keep all pizza bases at a same level. Throughout the meal only that employee interacted with us. You require table for 2/4/6. Pizza base is formed of 3 different size-Personal. How are you? Welcome to Pizza Hut. In Pizza Hut. GK ² employee was not concerned too much interactive with the customer and was just serving. The size is differentiated by weight and then the shape. This may be due to different management styles followed by managers. we found each pizza hut outlet bit different in terms of the service provided by them. He didn·t ask for whether we want anything else or not. SCRIPTS: They have provided their employees with particular scripts that has to be spoken when similar situation arises Eg. CP.VARIABILITY For the purpose of least Variability possibility they follow below mentioned steps TRAINING.

For dish washers they have 5 yr AMC done. it has to be stored at a particular level of temperature. This enables Pizza Hut to be prepared for any small breakdown affecting there business at any particular time. This has reduced loss due to spoilage by a great extent .MAINTENANCE MANAGEMENT For the purpose of managing as well as maintaining machines there is GPM (General Purpose Maintenance) person available at every pizza hut outlet. They have made a proactive management MATERIALS MANAGEMENT Since pizza hut has most of its inputs( vegetables. Whenever the things are taken from their Bills are issued to a particular outlet and these bills are paid monthly. how to change temperature and incase of any failure how to temporary make the machine work. He know how to repair machine. This is done by Restaurant Support System of YUM Restaurants. imported vegetables) perishable. There is one IT person available to check system or software failure. The have done AMC with the Yum Restaurant International Ltd for machine provided by them. cheese .topping sauce.

We need to see that is it a appropriate time to give questionnaire. The factors for success of Pizza hut are value food. Developing the local supply chain. We got to know the practical knowledge of working of Restaurants³What kind of software is used.OUR EXPERIENCE WITH THIS PROJECT We have learnt a lot in terms of how difficult it is too please a customer. How they make process faster at peak hours. Customizing product offerings etc PROBLEMS FACED DURING THE PROJECT y y y Information sharing is the most critical problem faced by us To reach pizza hut at those time when their staff is free and more open to share information Customers are not willing to spare time to fill the questionnaire. . Some people are very rude while saying no. how to serve fast and what is a difference between what management thinks and what customer thinks.

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