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PROJECT REPORT

ON

PIZZA HUT

Submitted By:

Shruti Bhatia (70)Vikas Bansal (88)

Vipul Agarwal (90)

Dhruv Sahni(22)

Neha(42)

Aakanksha Vashistha(1)
http://en.wikipedia.org/wiki/File:PizzaHut.jpghttp://en.wikipedia.org/wiki/File:PizzaHut.jpghttp://en.wikipedia.org/wiki/File:PizzaHut.jpg


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INDEX

S. NO PARTICULARS PAGE

1. Pizza HutThe Introduction 3-5

2. Ansoff Matrix 6

3. Quality Management 7

4. Perceptual Mapping 8

5. Technological Changes 9-11

6. Pizza Hut Service Quality Dimensions 12--13

7. Chase Strategy 14

8. SWOT 15

9. 7Ps of Services 16-18

10. Service Process 19-20

11. Fishbone 21

12. Servicescape 22

13. Gap Model 23

14. Research & Development 24

15. Variability 25

16. Maintenance & Materials Management 26

17. Our Experience with Project 27


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PIZZA HUT-The IntroductionPizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and

Long John Silvers under its umbrella. Pizza Hut is the worlds largest pizza chain with over 12,500

restaurants across 91 countries

In India, Pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai

Kolkata, Hyderabad, Pune, and Chandigarh amongst others. 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.

PIZZA HUT'S MISSION STATEMENT

We take pride in making a perfect pizza and providing courteous and helpful service on time all the time

Every customer says, "I'll be back!" We are the employer of choice offering team members

opportunities For Growth, Advancement, And Rewarding Careers in a Fun, Safe Working Environment.

P.E.A.R.L.SPASSION for excellence in Doing everything

EXECUTE with positive energy and urgency.

ACCOUNTABLE for growth in customer satisfaction and profitability.

RECOGNIZE the achievement of others and have fun doing it.

LISTEN and more importantly, respond to the voice of the customer.


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PIZZA HUT STORY 1958: The legacy of Pizza Hut began, when two college-aged brothers from Whichita, Kansas,

Frank and Dan Carney opens first Pizza Hut restaurant after borrowing $600 from their mother.

1959: Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas. 1968: International market entered with opening of Pizza Hut restaurant in Canada. 1969: Red roof adopted for restaurants. 1972: Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.

1977: Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for anundisclosed sum.

1986:Delivery service, as a new concept, is initiated 1996: Pizza hut comes to India with a dine in restaurant Bangalore that has special vegetarian

pizzas.

1997: Pizza hut opens a dine-in restaurant in Delhi. 2007: Pizza hut brought out our Thick n Thin Pizza and began to re-franchise our dine-in

restaurants.

2009: Pizza Hut offering baked fillings in the corner of the pizza

LOCATION IN INDIAPizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has

captured a dominant and significant share of the pizza market and has maintained an impressive growth

rate of over 40 per cent per annu. Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A

Fortune 300 company, Yum! Brands owns Kentucky Fried Chicken, Pizza Hut, Taco Bell, A&W and Long

John Silvers restaurants worldwide. In India Pizza Hut has not included all kinds of Pizza which it

serves elsewhere. But rather localized its menu as per Indian customers


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A critical factor in Pizza Huts 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 in India, Pizza Hut has clearly established itself as a

brand with an Indian heart. 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, where it offers a Jain menu sans all root-based ingredients.


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ANSOFF MATRIX

EXISTING

CUSTOMERS

NEW

CUSTOMERS

EXISTING

SERVICES

Consolidation/Market Share

Building

Market

Development

NEW

SERVICES

Service

Development

Diversification

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 different things in their

menu. Most recent one is the filling of toppings in the pizza corner. Therefore they are offering same

customer a different kind of product. Thus they are into Service Development. Pizza Hut is always

trying to come up with some innovative way to make a pizza into something slightly different - differentenough that customers will think it as a whole new 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.


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QUALITY MANAGEMENTTo 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.H.A.M.P.S. that stand for

Cleanliness, Hospitality, Accuracy, Maintenance, Product quality and Speed. Based on the report

submitted by the official, the restaurants are rated and in the rare case of finding under performers

they are kept under strict vigil

This is the most important for a food chain 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 Gurgaon. This department has the task to implement quality standards

and know whether they are achieved or not.


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PERCEPTUAL MAPPING

Perceptual mapping helps the Management to see the real picture of their own and their competitiors. In

above map, Services are plotted on X-axis and Pricing is plotted on Y-axis.

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 Dominos, KFC and McDonalds. Pizza Hut is providing High Services at

very high price. That is why it is plotted in 1st quadrant. Likewise, McDonald provide high services but

the food products are not expensive. But in 2nd quadrant, the services are moderate and they cost high

than McDonald.


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TECHNOLOGICAL CHANGESNow a days 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. It makes sure that it uses baking and heating ovens

that are new and efficient. They have tie ups with company which provide them cold rooms. This tie up

is of exchange of machine after a period of 6 months if new kind of machine is made by them.

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, mobile number where

pizza hut provide them latest pizza news, discounts and offers at email ,mobile phones) telemarketing

advertising for their promotional activities.


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Computer based customer data that is MIS (managing information system) helps in collecting customer

data, daily transactions, future forecasting and decision making.

Also in taking order they use the software provided by Devyani International Limited. DIL is a leading

franchisee of YUM Restaurants International, the world's largest restaurant company with over 34,000

restaurants in more than 100 countries. Following are the screenshots telling the process of order in

pizza hut.

When a customer enters and takes table at pizza hut that table has certain number. An average of 4

tables are handled by one single employee. When order is placed by the customer the employee enters

his employee id and mark the table in which the customer is sitting, place his order and once he click on


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yes time of order is displayed on screen.Like our table is numbered 114 and order is placed at 5.25 pm

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 its feeded in software. 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. Itstransparent as its in written form.


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PIZZA HUT SERVICE QUALITY DIMENSIONS

Scale 5 4 3 2 1

Strongly Satisfied Satisfied Neutral Dissatisfied Strongly Dissatisfied

Pizza Hut Service Quality Dimensions

Tangibility

1.Employees Appearance 5 4 3 2 1

2. Environment is comfortable 5 4 3 2 1

3. Environment is attractive 5 4 3 2 1

4. Ingredients of Food 5 4 3 2 1

5. Freshness 5 4 3 2 1

6. Hygienic 5 4 3 2 1

7. Packages 5 4 3 2 1

Reliability

1.Perform the services right and accurately 5 4 3 2 1

2.Provide services on time 5 4 3 2 1

3.Correct the mistakes and errors 5 4 3 2 14. Timely home Delivery 5 4 3 2 1

5. Hospitality 5 4 3 2 1

Responsiveness

1.Employees behavior, when busy 5 4 3 2 1

2. Approach to higher Management 5 4 3 2 1

3.Employees guidance to customers 5 4 3 2 1

4.Response to customer 5 4 3 2 1

5.Waiting time for Dine In. 5 4 3 2 1

6. Providence of special services 5 4 3 2 17.Privacy 5 4 3 2 1

8. Time for take away. 5 4 3 2 1

Assurance

1. Employee Behavior 5 4 3 2 1

2. Knowledgeable Employees 5 4 3 2 1

3.Courtious 5 4 3 2 1

4. Attitude 5 4 3 2 1


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Therefore from the above information we analysed that on the scale of 5 Pizza Hut ranks

Tangibility 4.2 (30 /7)

Reliability

4.2 (21/5)

Responsiveness 3.5 (28/8)

Assurance 4.75 (19/4)

Empathy 4.5 (18/4)

And a total Service quality they score 4.23 on the scale of 5 ( 4.2 +4.2+ 3.5+4.75+4.5/ 5) which tells that

its customer are satisfied. However it has to improve them on Responsiveness as it will help them to

delight the customer. They are improving on their que management system by already preparing

themselves two hours before the peak hours. The keep things at the place and make their ingredients

ready so that minimum time is taken to serve the customer. As a result table gets vacant early and other

customers can be served.

This was the questionnaire through which we got above data. Average data has been marked of 42

customers. However data was collected from 56 customers. 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.

Empathy

1. Sincerity 5 4 3 2 12. Solve the problems 5 4 3 2 1

3. Kind behavior of employees 5 4 3 2 1

4. Unique Service specially for you 5 4 3 2 1


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CHASE STRATEGY OF PIZZA HUTAt the peak hours they prepare themselves few hours before

1. All team members are prepared before peak hours with vegetables required for toppings.They keep things ready in the line. Keep lemonade syrup ready so that they just have to

add 7 up when the customer ask for a Lemonade.

2. They be ready with different patties ( pizza base)3. They follow PREP strategy for peak hours.4. During peak hour they provide the pizza making time of 15 20 minutes. While there cycle

of making one pizza is only 7 minutes. In normal case they provide the pizza making time of

10 14 minutes.

This they do, so that the customers have food as early as possible and their table gets vacant early so

that more and more customers are served.


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SWOT ANALYSIS

Strngths

Good Quality Food (Hygiene)- All the ingredients except local vegetables are provided by Yum

Restaurants through their Restaurant Support System. All other inputs are according to the

quality standards provided by them.

Brand Name: Pizza Hut is a franchise of Yum Restaurant which has its outlets worldwide.

Food worth its Price:Employing economies of scale, Pizza Hut has made its offerings more

affordable. They have starting range of Pizza with just Rs 75 and individual serving pizza with

cold drink for Rs 99 only.

Good Service: The provide good service in terms of timeliness of pizza, courteousness of

employee, knowledge of employees, taste of pizza etc. They provide pizza before time, their

staff are scattered around near all the tables so that incase the customer wants to call pizza boy

they just have to wave.

WeaknessesQue during Peak Hour

They advertise very less

Fewer Outlets: Their outlets are not spread all over the city as compared to other competitors.

Opportunities

Pizza Slice: They are one of the best pizza makers. In their take aways they can start with pizza

slices. This will attract people with small budget as well as those who wish to try pizza hut. This

has been started by Sbaro one of its competitor. Pizza Hut being in market for a long time can

cash on this opportunity

Low Calorie Pizzas in their menu

Threats

Competitors like Dominos, Sbaro .

Housewives are interested in making Pizzas & other Fast Food at home.


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7 Ps OF SERVICES

PRODUCT

Worldwide and in India, Pizza Hut has come to become synonymous with the best pizzas under one roof

This is because at Pizza Hut the belief is that every pizza has its own magic, thus making it a destination

product which everyone seeks. It is this belief that has ignited the passion to create, innovate and

serve the finest product the industry has to offer, while setting standards for others to strive to

replicate. Pizza Hut is committed to providing uncompromising product quality, offering customers the

highest value for money and giving service that is warm, friendly and personal. A critical factor in PizzaHuts success has been its unique dining experience. Crewmembers at Pizza Hut strive each day to

provide customer mania - the kind of service that ensures that every visit of the customer is a

memorable one.

Over the years Pizza Hut has also developed and successfully introduced a range of products especially

suited to the Indian palate. 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, in India the menu offers the option of acomplete meal. It includes appetizers, a Salad Bar - where the customers can make their own fresh

salads, a range of soups, pastas and desserts

PRICE

In the past, Pizza Hut has successfully used the high/low pricing strategy when setting the retail price

of its products. The high/low retail pricing strategy allows Pizza Hut to charge a price that is above the

competition, but also promote frequent sales to lower the price below them. Both Pizza Hut and thebeverage Mountain Dew are Pepsi subsidiaries, bundle pricing will be used.. Pizza Hut will be able to sell

two products together at a single price to suggest a good value. Different groups of customers are

willing to pay different prices for the same product. 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, this strategy

will emphasize product and service quality. 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.


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PEOPLE

Here the job design is not the most difficult task to do. Also there is no specific requirement for

recruiting process.

After talking one of the employees in Pizza Hut, we came to know the criteria of selection. The girl was

from west India, she was only 10th passed out. After this we it was confirmed that there is no proper

requirement of the educational background. The only factor they were considering on the communication

skills, how they communicate with the customers.

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. For this the Management conducted the

training process for the new employees. The Training is given for total 5 days. Out of 5 days, they have

3 days for kitchen training and other 2 days in the main dining, that is, how to take orders and basically

how to communicate with customers and make them happy by their services.

PROCESS

The design of the process of the pizza hut is very efficient .pizza hut do not follow any kind of

hierarchy , all the employee is at the same level ,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. and pizza hut always try

to upgrade with changing envierment and modernization is key of success of the pizza hut.


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SERVICE PROCESS


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FISH BONE

Fish bone is a cause and effect diagram to identify potential cause of problems. Pizza hut always try to

have customer satisfaction on priority and if there customer are not satisfied, what are the main cause

of unsatisfaction. These causes can be well explained by the fish bone diagram.

FISH BONE DIAGRAM OF PIZZA HUT UNSATISFIED CUSTOMER


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RESEARCH & DEVELOPMENT

As we told that Pizza Hut is a brand under Yum therefore any research on making of new types of pizza,

pasta, 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. Pizza Hut was the first one to come up

with thin crust pizza and corner filled with topping. This differentiates it from other pizza making

restaurants.

Pizza Hut provides same Product- Pizza. But keeps on doing minor variations in it. It started with thin

base pizzas. Under this it has reduce the weight of its Dough but kept the size of its pizza the same. By

this it offered a new variety in pizza which is comparatively lighter to eat than others. Now it has come

up with another new pizza with Golden Cheddar melted on the top and a tempted filling baked into the

edge. 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). They take ideas from

hotel management institute(Institute of Hotel Management)


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Documents

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