You are on page 1of 23

University of Barishal

Assignment on:
“TQM Practice of Pizza Hut in Bangladesh.”

Course Title: Total Quality Management


Course Code: MGT-414

Submitted to:
Surajit Kumar Mondal
Lecturer
Department of Management Studies
University of Barishal
Department of Management Studies
4th Year, 1st Semester
Session: 2019-2020

Submitted By:
(Group-5)
Sl. No. Name Student ID

01. Md. Al-Amin 17 MGT-27


02. Fathema Tujjohora 17 MGT-028

03. Soma Rani Mandol 17 MGT-029

04. Istiaque Ahmed 17 MGT-030

05. Md. Anisur Rahman Biplob 17 MGT-031


06. Sourov Sadhu 17 MGT-032

Submission Date: 22 June 2021


Table of Contents

Sl. No. Content Page


Number

1.0 Companey Profile 4

1.1 Pizza Hut in Bangladesh 6

1.2 Menu of Pizza Hut 7

2.0 Mission Statement 8

3.0 What’s Total Quqlity Management 9

4.0 8 Principle of Tital Quality of Management 9

5.0 Pizza Hut total Quality Management Strategy 15

6.0 Quality Assurance 16

7.0 Training and Education of Employees in Pizza Hut in 16


Bangladesh

8.0 Total Quality Management and Working to satisfy customer. 17

9.0 Total quality Management and Continuous Improvement. 19

10.0 Total Quality management and competitive advantages of Pizza 20


Hut Company in Bangladesh.

11.0 Quality assurance system of Pizza Hut in Bangladesh 21

12.0 Conclusion 21

13.0 Referance 22

2|Page
3|Page
1.0 Company Profile

Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and
international franchise that offers different styles of pizza along with side dishes including
pasta, buffalo wings, breadsticks, and garlic bread.

Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company [2])
with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100
countries.

Pizza Hut is split into several different restaurant formats; the original family-style dine-in
locations; store front delivery and carry-out locations; and hybrid locations that offer carry-
out, delivery, and dine-in options.

Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat" pizza, salad,
bread sticks, and a special pasta. Additionally, Pizza Hut also has a number of other business
concepts that are different from the store type; Pizza Hut "Bistro" locations are "Red Roof"s
which offer an expanded menu and slightly more upscale options.

Pizza Hut Express" and "The Hut" locations are fast food restaurants. They offer a limited
menu with many products not found at traditional Pizza Huts. These type of stores are often
paired in a colocated location with a sibling brand such as Wing Street, KFC or Taco Bell,
and are also found on college campuses, food courts, theme parks, and in stores such as
Target.

Traditionally, Pizza Hut has been known for its ambiance as much as pizza. Vintage "Red
Roof" locations can be found throughout the United States, and quite a few exist in the UK
and Australia. Even so, many such locations offer delivery/carryout service. This building
style was common in the 1960s and 1970s. The name "Red Roof" is somewhat anachronistic
now, since many locations have brown roofs. Dozens of "Red Roofs" have closed or been
relocated/rebuilt. Many "Red Roof" branches have beer if not a full bar, music from a
jukebox, and sometimes an arcade. In the 1980s, the company moved into other successful
formats including delivery/carryout and the fast food "Express" model.

4|Page
Type Wholly owned subsidiary

Industry Restaurants

Founded Wichita, Kansas (1958)

Founder(s) Dan and Frank Carney

Headquarters Plano, Texas, U.S.

David C. Novak, Chairman Scott Bergren, President


Key people

Italian-American cuisine pizza · pasta ·


Products
desserts

Employees 30,000+

PepsiCo (1977–1997)
Parent
Yum! Brands (1997–present)

The websitePizzahut.com

5|Page
1.1 Pizza Hut in Bangladesh
Pizza Inn has continued its worldwide franchise expansion with the opening of its first
location in Bangladesh. The USA-based pizza restaurant chain has opened its first
Bangladesh franchise in the capital city Dhaka. The Bangladesh restaurant is owned and
operated by the Pizza Inn Master Franchise Owner S.A.K. Edramuzzaman of Mohammed
Food & Allieds Private Limited.
Charlie Morrison, CEO of Pizza Inn, said: "They're excited about our expansion into
Bangladesh as they’ll as the entire Asia and Middle East region. It is a pleasure to provide our
freshly made pizzas, pastas and other popular menu items to the local residents at affordable
prices in one of the largest restaurants in our system."

Each Pizza Inn restaurant provide customers with a variety of specialty and traditional
handcrafted pizzas, pastas, salads and desserts in a dine-in buffet format with additional
delivery and carryout options

Humayun Hyder, Project Manager for the Pizza Inn Bangladesh Master Franchise Owner,
said: "It is with immense pleasure that they have opened the first Pizza Inn in Bangladesh and
our opening was greeted with great coverage from the television and print media. The
opening was inaugurated by the Honorable Minister of Civil Aviation and Tourism of the
Peoples' Republic of Bangladesh and attended by many of the country's elite and prominent
businessmen."

"With the addition of our first location in Bangladesh, they have successfully opened six
restaurants internationally since our fiscal year began in July 2009," added Madison Jobe, VP
of Development for Pizza Inn. "They are excited to continue our aggressive growth
internationally and anticipate tremendous success in Bangladesh."

6|Page
1.3 Menu of Pizza Hut

Serial Menu Personal serves Medium Family


(tk) serves serves
no (tk) (tk)
1 Spicy beef 280 520 950

2 Chicken 280 520 950


Hawaiian
3 Chicken exotica 280 520 950

4 Shrimp lover 280 520 950


5 Veggie lovers 250 470 850
6 Ultimate 250 470 850
adventure
7 Supreme 330 650 1150

8 Chicken 330 650 1150


supreme
9 Beef 330 650 1150
pepperoni
10 Veggie 270 530 950
supreme
11 Country feast 270 530 950

7|Page
12 380 750 1350
Chicken classic

13 Chicken super 380 750 1350


supreme

14 Seafarer 380 750 1350


15 Seafood 380 750 1350
symphony
16 The works 380 750 1350
17 Meatball super 380 750 1350
supreme
18 Pepperoni 380 750 1350
premium

2.0 Mission statement

Pizza Hut provides the perfect mix of great food, great service and great place at a great value
to our customers who are looking for a grand experience. They believe in positive intension,
and maintain a strong internal environment by developing our competitive work force, which
they trust. The latest technological tools along with the best support systems from our
franchiser YUM! International is used to ensure easy workflow and to make our restaurants
the favorite in the Country.

Pizza Hut is one of the largest fast-food chains in the food industry. The company has
maintained their quality. Discuss about their total quality of management here. They should
practices the standards set as part of the TQM approach that can reflect both internal
priorities and any industry standards currently in place .

3.0 What's Total Quality Management?


8|Page
“Total Quality Management (TQM) is a philosophy for managing an organization in a way
which enables it to meet stakeholder needs and expectations”.

It is a management framework based on the belief that an organization can build long-term
relations with customer and also describes a management approach to long-term success
through customer satisfaction. All members of an organization participate to focus on
improving processes, products, services, and the culture in which they work.

TQM requires organizations to focus on continuous improvement. It focuses on process


improvements over the long term, rather than simply emphasizing short-term financial
gainsTotal quality management (TQM) is a structured approach to overall organizational
management. The focus of the process is to improve the quality of an organization's outputs,
including goods and services, through continual improvement of internal practices. The
standards set as part of the TQM approach can reflect both internal priorities and any industry
standards currently in place.

Industry standards can be defined at multiple levels and may include adherence to various
laws and regulations governing the operation of the particular business. Industry standards
can also include the production of items to an understood norm, even if the norm is not
backed by official regulations.
TQM Example: One of the most famous examples of total quality management is Pizaa Hut.
Pizza Hut implemented maintain their special quality System to make its supply line more
efficient. The company decided to keep just enough production to fulfill customer orders as
they were generated.

4. 0
8 principles of Total Quality Management

As with most management methods and techniques, implementation and success will vary
from one company to another. While there is not a single agreed-upon approach, the most
common TQM definition includes the following eight principles.
1. Customer focus
The first of the Total Quality Management principles puts the focus back on the people
buying your product or service. Your customers determine the quality of your product. If
your product fulfills a need and lasts as long or longer than expected, customers know that
they have spent their money on a quality product.
When you understand what your customer wants or needs, you have a better chance of
figuring out how to get the right materials, people, and processes in place to meet and exceed
their expectations.
To implement this TQM principle:
 Research and understand your customers’ needs and expectations.
 Align your organization’s objectives with customer needs.

9|Page
 Communicate with customers, measure satisfaction, and use the results to find ways
to improve processes.
 Manage customer relationships.
 Find a balance for satisfying customers and other interested parties (such as owners,
employees, suppliers, and investors).

The benefits of being customer-focused include:


More sales, increased revenue, market share, and mindshare
Strong customer loyalty leading to repeat business
Increased possibility that satisfied customers will tell others about your products and services.
2. Total employee commitment
You can’t increase productivity, processes, or sales without the total commitment of all
employees. They need to understand the vision and goals that have been communicated. They
must be sufficiently trained and given the proper resources to complete tasks in order to be
committed to reaching goals on time.

To implement this TQM principle:


 Clearly communicate and acknowledge the importance of each individual
contribution to the completed product.
 Stress that each team or individual accepts ownership and give them the responsibility
and opportunity to solve problems when they arise.
 Encourage employees to self-evaluate performance against personal goals and
objectives, and make modifications as necessary to improve workflow.
 Acknowledge successes and optimized performance to build confidence in your
employees and your stakeholders.
 Make responsibilities clear, provide adequate training, and make sure your resources
are used as efficiently as possible.
 Encourage people to continually seek opportunities to learn and move into other roles
to increase their knowledge, competence, and experience.
 Create an environment where employees can openly discuss problems and suggest
ways to solve them.

The key benefits of total employee commitment include:


 Increased employee retention because employees are motivated, committed, and
actively involved in working toward customer satisfaction
 Individual and team innovation and creativity in problem-solving and process
improvement
 Employees who take pride and accountability for their own work
 Enthusiasm for active participation and contribution to continual improvement

10 | P a g e
3. Process approach
Adhering to processes is critical in quality management. Processes ensure that the proper
steps are taken at the right time to ensure consistency and speed up production.
To implement this TQM principle:
 Use Total Quality Management tools such as process flowcharts to define and
delineate clear roles and responsibilities so everybody knows who does what at
certain times.
 Create a visual action plan so everybody can easily see the specific activities that need
to be completed to achieve the desired result.
 Analyze and measure current activities to see where improvements can be made or
where steps in the process are creating bottlenecks.
 Evaluate the impact your processes and activities may have on your customers,
suppliers, and all stakeholders.

Benefits of a process approach include:


 Faster development and production cycles, lower costs, and increased revenue
 More consistency and predictable outcomes
 Focus on continued improvements and success.

4. Integrated system
Typically a business has many different departments, each with their own specific functions
and purposes. These departments and functions should be interconnected with horizontal
processes that should be the focus of Total Quality Management. But sometimes these
departments and functions operate in isolated silos.
In an integrated system, everybody in every department should have a thorough
understanding of policies, standards, objectives, and processes. Integrated systems help the
company to look for continual improvement in order to achieve an edge over the competition.
To implement this TQM principle:
 Promote a work culture focused on quality.
 Use flowcharts and other visual aids to help employees understand how their
functions fit in with the rest of the company.
 Use as-is process analysis to see where improvements can be made.
 Make training available for employees who need to learn new processes and who
want to explore opportunities for advancement.

Benefits include:
Focus on quality that will help your business achieve excellence and meet or exceed customer
expectations

11 | P a g e
5. Strategic and systematic approach
The International Organization for Standardization (ISO) describes this principle as:
“Identifying, understanding and managing interrelated processes as a system contributes to
the organization’s effectiveness and efficiency in achieving its objectives.”
Multiple processes within a development or production cycle are managed as a system of
processes in an effort to increase efficiency.
To implement this TQM principle:
 Provide your people with the proper training and resources that will help them
complete their individual steps in the process.
 Continually improve processes and products, and upgrade equipment as necessary to
reach goals.
 Make continual improvement a measurable objective for all employees.
 Recognize, acknowledge, and reward innovations and process improvements.
 Benefits include:
 An ability to quickly identify, react, and fix process bottlenecks or breakdowns
 Overall improved organizational capabilities and improved performance

6. Continual improvement
Optimal efficiency and complete customer satisfaction doesn’t happen in a day—your
business should continually find ways to improve processes and adapt your products and
services as customer needs shift. As previously stated, the other Total Quality Management
principles should help your business keep an eye toward continual improvement.
To implement this TQM principle:
 Implement policies to establish product, process, and system improvements as
measurable goals for individuals, teams, and departments.
 Recognize, acknowledge, and encourage innovation to improve processes and
development.
 Encourage employees to participate in available training sessions to learn and take on
new and additional roles.

Benefits include:
 Improved knowledge and capabilities to increase performance
 Improvement goals strategically aligned with organizational capabilities and goals
 Quick reaction times to recognize and fix bottlenecks and broken processes

7. Fact-based decision-making
Analysis and data gathering lead to better decisions based on the available information.
Making informed decisions leads to a better understanding of customers and your market.

12 | P a g e
To implement this TQM principle:
 Analyze and check data to ensure that it is reliable and accurate.
 Make relevant data available to stakeholders.
 Use valid methods to gather and analyze data.
 Make decisions based on the facts learned from the data in addition to your
experience and intuition.

Benefits include:
 Ability to make informed decisions
 Ability to analyze and defend past decisions by referencing factual records
 Ability to change past decisions based on data review

8. Communications
Everybody in your organization needs to be aware of plans, strategies, and methods that will
be used to achieve goals. There is a greater risk of failure if you don’t have a good
communication plan.
To implement this TQM principle:
 Establish an official line of communication so that all employees know about updates,
policy changes, and new processes.
 Where possible, involve employees in decision-making.
 Make sure everybody in every department understands their roles and how they fit in
with the rest of the company.
 Benefits include:
 Boost in morale and motivation when employees understand how their contributions
help the company achieve its goals
 Interdepartmental coordination and cooperation.

 Ability to more accurately measure the effectiveness of current policies and


procedures
 Higher motivation from employees to achieve goals because they are part of the
decision-making process

Successful implementation of these Total Quality Management concepts will not come
overnight. Because TQM often represents a large cultural shift, you may want to implement
these changes in phases to lessen the impact.
Using Total Quality Management in Industries:
Total quality management (TQM) as a term to describe an organization's quality policy and
procedure has fallen out of favor as international standards for quality management have been
developed. Please see our series of pages on quality management systems for more
information.

13 | P a g e
While total quality management is a holistic concept, achieving its characteristics is likely to
require the use of generic quality tools like Pareto analysis, cause and effect diagrams,
process mapping, statistical process control and histograms.
TQM implementation in BD service companies, focus on factors such as top management
commitment, customer focus, training and education, continuous improvement and
innovation, supplier management, employee involvement, information and analysis, process
management, quality .
Total quality management, or TQM, is utilized as a company-wide process to ensure product
or service quality. The goal of this process is complete customer satisfaction, which is
achieved through analyzing and improving products and processes within the company.
Total quality management benefits and advantages:
 Strengthened competitive position
 Adaptability to changing or emerging market conditions and to environmental and
other government regulations
 Higher productivity
 Enhanced market image
 Elimination of defects and waste
 Reduced costs and better cost management
 Higher profitability
 Improved customer focus and satisfaction
 Increased customer loyalty and retention
 Increased job security
 Improved employee morale
 Enhanced shareholder and stakeholder value
 Improved and innovative processes

34,000 restaurants in over 100 countries. There are various industries that are entering in the
fast food sector. Due to the increase in the competition level, the companies are losing their
market shares.  It is an American restaurant chain and the franchise established in 1958 by
Dan and Frank Carney. The company is located in 16,000 places globally. It is one of the
flagship brands of Yum. The company is giving focus on enhancing the new products that
suit the taste of the consumers.

14 | P a g e
5.0 Pizza Hut Total quality Management Strategies

TQM is the most important part for the food chain restaurant like Pizza Hut. All the
employees’ back- of-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.. TQM department has the task to implement
quality standards and know whether they are achieved or not.
Pizza Hut’s CHAMPS create their standard process in understanding what the customers
really want and doing whatever it takes to make it happen this is what they call as CHAMPS
which stands for: Cleanliness = Before and after handling the customers Hospitality,
Accuracy Maintenance, Products, Service These six items define the very core of customer
expectations.
In pizza hut TQM means continuous product development and quality customer service.
The ‘CHAMPS check’ is a tool used to ensure consistency of service and product quality
across the entire Pizza Hut estate.
Customer Service System and Quality control
The pizza company is very aggressive in terms of servicing the consumers. They are very
optimistic and based their strategies in their on-going customer relations where the
communication with their loyal customers leads the way to create another delightful product
and quality service.

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.

15 | P a g e
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 manager’s
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
due to corvid 19 situation timing standards may vary according to the availability of work
force and the hygiene factors.

6.0 Quality Assurance


The products made at Pizza Huts branches id Bangladesh 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 in other countries. 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.

7.0 Training and Education of employees in Pizza Hut in Bangladesh:

Pizza Hut, all their new employees have an initial training period in which they are shown the
basics and allowed to develop their skills to a level where they are competent in each area
within the restaurant.
Pizza Hut Bangladesh only offers training facilities for the outlet employees. The employees
working at the head office do not receive any training from the company.
The training facilities offered to the outlet employees are basically of two types.
• The first type is the initial three day training that each employee receives when he or she
gets employed by the company as mentioned in the previous segment.

16 | P a g e
• The second type of training is the monthly training sessions conducted by the Marketing
and Training department on the specific sectors

8.0 Total Quality Management and working to satisfy customers.

An organisation exists because of its customers. Customer satisfaction is proof of successful


TQM implementation. Quality is defined from customer's perspective. TQM requires focus or
both external as well as internal customers.
Customer perception of quality depends on many aspects, such as performance, service,
warranty price and reputation. Organizations need to set up a feedback mechanism for
measuring level of customer satisfaction. This could be done using comment cards,
questionnaires, focus group surveys, customer visits, report cards and inter-net reviews or
comments. Another essential mechanism is employee feedback.
Most dissatisfied customers do not complain to the manufacturer of service provider of the
company. Many of the customers are likely to buy the product or service again if their
complaint is heard and then resolved. Thus, organizations must listen to each compliant,
analyze root causes and take corrective and preventive action to resolve the same.
Assuring service quality requires communication across the organization. Sometimes, entire
process change may be required to serve customers better. It is also essential that the front
line people are carefully selected and properly trained as they represent the company for the
customers.
Pizza hut is the largest pizza restaurant company in the world. It has an expansion plan for
Bangladesh. It intends to have more outlets by the end of the year. Pizza Hut has more than
13200 units across 100 countries making it one of the largest pizza brands. Further, all new
outlets in Bangladesh would be franchisee owned resulting from the smooth functioning of
the existing stores which are all franchisee owned. Hence, the same arrangement will be
followed in the future to ensure growth oriented results. The data written below represent
what Pizza hut is all about and gives a brief profile of the company.
Their main quote: "Customer are the reason that we are here."
• No customers
• No Pizzas
That’s the secret ingredient.
The 5 secret principles:
• Employees are our secret ingredients.
• Show your "care".
• Say "yes" to customers
• Satisfied, capable teams create satisfied customers.
• Satisfied customers create profit and growth

17 | P a g e
PIZZA HUT IS ALL ABOUT: Its all about you and all about customers i.e. customer
creation and customer retention through customer satisfaction, its all about team spirit, team
spirit in order to attain good results.
TELEPHONE CALLS: The employee are not allowed to make or receive personal telephone
calls at work unless in an emergency. The restaurant has limited telephone lines, by keeping
the telephone occupied, we may be denying customer access to us and he may call the
competition instead.
THEIR TACTICS: "Whenever anybody thinks about pizza hut we want him or her to smile
and say "yum"
THEIR TRICON PASSION: To put a yum or peoples faces around the world. They also
have a bell outside each store which is to be rung by customers if they had a great time. It is a
sort of good encouragement, a kind of booster for them.
"WE SUCEED BECAUSE WE KNOW HOW TO WORK TOGETHER”
They specify "How we work together principles"
CUSTOMER FOCUS: They listen and respond to the voice of the customer.
BELIEF IN PEOPLE: They believe in people, trust in positive intentions, encourage ideas
from everyone and actively develop a workforce that is diverse in style and background.
RECOGNITION: They find reasons to celebrate the achievements of others and fun doing it.
COACHIONG AND SUPPORT: They coach and support each other .
ACCOUNTABILITY: They do what they say they are accountable, they act like owners.
EXCELLENCE: They take pride in their work and have a passion for excellence.
POSITIVE ENERGY: They execute with positive energy and intensity. They hate
bureaucracy and all the nonsense that comes with it.
TEAM WORK: They practice team together and team apart.
They call themselves:-
C=Cleanliness
H=Hospitality
A=Accuracy of orders
M=Maintenance of facilities
P=Product quality
S=Speed of service
They answer questions like:
"What influences a customer decision to a restaurant?
"HANDLING CUSTOMERS"

18 | P a g e
• Solve problem before it actually becomes a complaint.
• Never argue with the customer
• Never blame any other crew member
• Treat the customer, as you want to be treated.
• Thank the customer.
That is How they ensure customer satisfaction for successful TQM implementation.

9.0 Total quality Management and Continuous Improvement.

Continuous improvement means never ending improvement. TQM strategy in pizza hut helps
in continuous improvement in all the functions related to the organization. The company
continually strive to be better through learning and problem solving. They follow some
approach that help them with continuous improvement.
One of the approach is: the plan-do-study-act (PDCA) cycle.

Plan: Managers evaluate the current process and make plans based on any problems they
find. They need to document all current procedures, collect data and identify problems.
Do: In this step manager implement the plan. During the implementation process managers
document all changes made and collect data for evaluation.
Study: Here the data are evaluated by the manager to see whether the plan is achieving the
goals established in the plan phase.
Act: Implementation of new procedure.

19 | P a g e
It has also fulfilled the need and wants of the customers according to their requirement. If the
company gives focuses on continuous improvement, then it can give a positive impact on the
activities of the organization.

10.0 Total Quality management and competitive advantages of Pizza Hut


Company in Bangladesh

With changing times, the needs of consumers have also changed, with pizzas evolving from
being just a special occasion treat to an everyday home meal replacement. Of late,Pizza Hut
have witnessed a huge demand for their pan pizzas to be accessible at an attractive value in
Bangladesh. Given that customers are at the center of everything they do, rolling out a new
value program was the next logical step for.

Pizza hut the primary buyers are middle class consumers as like as couple, ages 20 to 35 who
want to reasonable price with better pizza but do not want not invest in expensively. They
want to buy a better pizza produced by a name they can trust.In Bangladesh Pizza hut and
dominos pizza both are the market leader.Pizza hut approximately cover 36% market share,
dominus is same and other organization covers the rest of the share.So to compete with other
competitors of Pizza hut like Dominos and so on in Bangladesh Pizza Hut have to take some
of the activities that can differenciate them from others they are given bellow:

1. Product Differentiation:Pizza hut has differentiated their product on reliability, taste, and
nutrition & quality. It always tries to serve their best Quality of its product is strictly
maintained by the authority. Their main focus is quality of product.
2. Service Differentiation:Pizza hut has many brunches throughout the world as well as
Bangladesh. In those brunches they have a service goal that is to give every customer a
reason to return. They form an idea of customer mania to maintain the standard of service.
3. People Differentiation:Pizza hut has gained a strong competitive advantage through
people differentiation by hiring and training skilled, sincere, educated people. Pizza hut is
present all around the globe, on all countries, with around 42000 people working in more
than 100 countries
4. Image Differentiation:Pizza hut logo differentiates from the other companies. For that
reason customer really identify them in the market, which is another advantages for Pizza hut.
Choosing the Right Competitive Advantage:
Important:Pizza hut gives much importance to product quality rather than any other feature.
Distinctive: Pizza hut doesn’t follow other company’s concept. They have different logo,
color and celebrity who promote their products.
Superior:Pizza hut gives priority in quality and taste for their products. But their main focus
is proper quality of product.

20 | P a g e
Preemptive:It’s not easy to copy design of pizza hut.Affordable:pizza hut always tries to
serve best within standard price.
Profitable:Pizza hut always tries to serve best within standard price and their business is also
profitable

11.0 Quality assurance system of Pizza Hut in Bangladesh

The quality of Pizza Hut’s ingredients and final products are guaranteed through their quality
assurance department which works with the restaurant operations department to monitor and
apply the standards the company sets for their locations. The company’s quality assurance
starts with its suppliers and the ingredients they are ordering from them.
Pizza Hut’s main ingredients are sourced from HACCP certified suppliers.Every year, a team
from abroad and a team from Pizza Hut carry out an official audit to check that each supplier
in Bangladesh conforms to the proper procedures and HAACP specifications sent down from
HAACP. At this time, the quality assurance department makes regular visits to the
company’s suppliers’ production and storage facilities. The temperatures of ingredients that
need to be kept refrigerated or frozen are checked during delivery to their restaurants to
ensure that the proper temperatures are maintained throughout the process. Once the
ingredients arrive to the location, they are immediately transferred to the restaurant’s cold
room or freezer where they are kept at a specified temperature before being used. The final
products are checked by the four regional directors on a daily basis and by the quality
assurance department.The last line of defense that Pizza Hut uses when it comes to quality
control is their restaurant managers, their assistants, and their staff. Every member of the staff
is trained to be able to give their customers the finest quality product. All of the Pizza Hut
restaurant locations in Bangladesh are checked on a timely basis by the quality assurance
department to ensure that they comply with health, safety, and operating standards. The local
and state health departments in which each restaurant location does business in also does
checks on the locations to make sure they are up to standards. Pizza Hut uses check sheets at
their restaurant locations, which help in making sure that each employee is maintaining the
standards set by certain agencies.
Assurance department will also check the restaurant location to make sure the issue has been
handled. Each person in charge at a Pizza Hut restaurant location must know the eight major
food allergens and the common symptoms that would be associated with an allergic reaction.
Another main component of their quality control is communication between the company and
its customers. Pizza Hut has created, both in their restaurants and at their customer service
center, a network of communication based on the principles of the complaint management
system so that Pizza Hut’s customers can make their views, problems, and complaints known
to the company. This would be considered the voice of the customer.

12.0 Conclusion
Total Quality Management is the process that helps to make plan as a whole for the
development of organization. As a manufacturing company Pizza Hut takes some steps to
control the quality, training employees and developing the products. Pizza hut maintains the
international standard to production and service. They always focus for customer satisfaction
and development of product to sustain in the competitive market. They work with the strategy
called “CHAMP”.

21 | P a g e
Cleanliness = before and after handling the customers Hospitality, Accuracy Maintenance,
Products, Service. They control quality by Preparations, Make table, Make Table Standards,
Cut Table, Dispatching. There is regular auditing and monitoring system in place.

So.for a manufacturing company TQM is important to compete in market but it requires


educated and trained workforce.

13,0 References
1.wikipedia.org/wiki/Pizza_Hut in bd.
2.www.studymode.com
3.www.acasestudy.com/pizza-hut.
4.Official website of pizza hut in BD.

22 | P a g e

You might also like