Pizza Hut Inc Essay

Words: 1128
Pages: 5


Case Analysis
Pizza Hut, Inc.

Pizza Hut, Inc. was started on June 15, 1958, by two college students Dan and Frank Carney from Kansas. In 1968 they were a chain of 296 restaurants. It went public in 1968 and was acquired by Pepsico in 1977. In 1981 Pizza hut became the largest Pizza restaurant in the world accounting for sales worth $1 billion. By 1986 it had 5025 domestic units. All Pizza hut restaurants were fully serviced eat-in and carry out family restaurants.
The Pizza market is a fast growing one. Over the years it had evolved into 3 broad categories – * Eat-in * Carryout * Delivery
In 1982, delivery system consisted of only 1% of the total revenue of pizza market. This was
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3. Pizza Hut is known as a premium brand and hence it can win over Dominos by concentrating on product quality and innovation.
The opportunity cost that Pizza Hut

Customer Service Centre (CSC)

Benefits of Customer Service Centre * Capable of handling vast number of calls with large number of delivery units * Easy track of Customer records and Sales * Reaching more number of customers * Less waiting time than other services * Low labor cost
Pros and Cons of Delivery Model
* Largest pizza chain in the world, so delivery model would reach to the wider population. * Delivery model trend is increasing year on year, Dominos are on similar service. * As per consumer survey by National Restaurant Association identified home delivery as the most important new fast food concept. * Rapid growth of in-home video rental market together with increasing number of baby boomers might further increase this model. * Consumer viewed Pizza as eat at home food.
* The new model needs more workforce and additional investment. * The price increase with an increase in the size of the pizza (up-sizing) was not identified with the customers who perceived only small, medium or large pizzas as standard sizes. * 65% of franchise owned outlet