Report On Pizza Hut

Page | 1 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 Hut’s 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. There are different objectives of every organization. In order to achieve these objectives different targets 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. These targets fall within the organizational structure in which there are many people who have different targets to achieve. In order to successfully achieve the targets they need to co-operate and work in a friendly environment.

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Introduction Pizza Hut was founded in 1958 by Dan and Frank Carney. It is an American restaurant chain and international franchise based in Addison, Texas, offering different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest casual dining restaurant chain with over 12,500 restaurants across 91 countries including India. Pizza Hut played a major role in turning pizza from an Italian specialty into a mass-market, mainstream food. Pizza Hut had developed a reputation for and commitment to product quality that was deeply engraved into the restaurant managers, and with it, great pride in the brand. By the mid 1990s, Pizza Hut had become a powerful brand, with some 8,000 U.S.-based restaurants, 140,000 employees and over $5 billion dollars in system-wide sales. An internal Pizza Hut market researcher estimated that over 90 percent of American pizza eaters had tried a Pizza Hut pizza. The following chronology explains the growth of Pizza hut as a leading food chain. · 1958 Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas. · 1972 1000 restaurants are open throughout the USA. · 1973 Pizza Hut went international with restaurants in Japan, Canada & England. The first UK Pizza Hut opened in Islington, London.

Page | 2 · 1977 PepsiCo bought Pizza Hut. · 1980 Pan Pizza was introduced. · 1982 The UK joint venture started between PepsiCo and Whitbread. · 1984 Over 50 restaurants so far in the UK. · 1986 By now, there were 100 restaurants in the UK and 5000 worldwide. · 1987 An average of one restaurant opened each week in the UK. · 1988 The UK's First Delivery Unit was opened in Kingsbury, London. · 1992 There were 9,000 restaurants in 84 countries. · 1993 There were 300 restaurants and delivery stores in the UK. · 1994 10,000 Pizza Huts were open for business. · 1997 PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants was born, creating the largest restaurant brand in World. Tricon became the partner company with Whitbread. · 1999 Pizza Hut had over 400 restaurants, employing 14000 people. · 2002 Tricon Global became YUM! Brands Inc. · 2006 Whitbread sold their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd was now 100% owned by Yum! · 2008 bought Godfather's Pizza in Ireland with 28 stores.

Pizza Hut in India Pizza Hut is the market leader in casual dining restaurants in India with 147 stores across 34 cities in India. Pizza Hut made its grand launch in India with a dine-in restaurant in Bangalore in June 1996 and was the first international restaurant chain to enter this category and can be credited with pioneering the pizza market in India. After launching its first restaurant in Bangalore that offered special vegetarian pizzas, Pizza Hut later opened its first all-

Page | 3 vegetarian location in the city of Ahmedabad. After that it has been no looking back for Pizza Hut with introducing more and more restaurants all across India. It’s largest restaurant in Asia is located in Kolkata (Camac street). It is diversity that has made the history of Pizza Hut such a success. Its menus and recipes across the various branches worldwide are not the same. Different locations use different suppliers and different toppings, varying as per the demand of the customers. The building block of the history of pizza hut has been this diversity. This same strategy was applied in its operations in India also. Indians prefer spice in their food and having very peculiar eating habits. In Pizza Hut in India, in addition to the traditional toppings, Indian foods are incorporated such as chicken tikka, keema, lamb korma, and paneer, among others. Beef toppings are not sold as the cow is considered as a sacred animal among the Hindu majority. Indian Pizza Huts are typically sit-down restaurants with waiters, and menu options include non-pizza items such as beer, pasta, salad, and desserts. According to the Economic Times - Brand Equity, Pizza Hut is ranked 2nd most trusted brand in the year 2007. Its great tasting pizzas and trademark dining experience have made it possible for the company to record a doubledigit growth and expand its presence to its current size. Pizza Hut captures a 27 per cent market share of the eating-out market in India and with over 70,000 footfalls per day across the country, it claims to provide diners with the ideal place to build memories and relationships over delicious food.

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Pizza Hut's Mission Statement Pizza hut takes pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!" • P.E.A.R.L.S •

PASSION for excellence in Doing everything

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EXECUTE with positive energy and urgency.

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ACCOUNTABLE for growth in customer satisfaction and Profitability

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RECOGNIZE the achievement of others and have fun doing it.

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

The significance of customer satisfaction for business success The pizza market has grown into a Rs 150-crore business and has seen so many new players coming in the last few years. In spite of being the leading pizza restaurant in India, Pizza Hut still faces competition from other pizza joints like Domino’s, Papa Johns and Smoking Joes. In a fast paced and competitive environment where customers have become more aware of the choices available to them it is difficult to be the market leader and have a satisfied customer base. Consumers expect better service and value for money when they are looking for a dining experience or even when they are just spending their money on a pizza delivered on their door step.

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It is very frequently stated by management and marketing theorists that customer service quality is essential to business success. Firms that provide a greater quality of service as measured by customer satisfaction surveys also experience higher economic returns than competitors that do not pay enough attention to customer service. Satisfied customers form the central part of the long-term success of business, and the linkage between customer satisfaction and customer behavior has been researched about and emphasized by marketing gurus of the like of Philip Kotler. A highly satisfied customer will be loyal to the brand and this will in turn lead increased repeat business and greater revenue. It is not possible to increase business prosperity without increasing customer satisfaction. Satisfied customers will return and keep the business going. It is not the amount of goods and services a company can produce that leads to its success as much as how well it satisfies its customers so they will return and keep the business growing. Satisfied customers are essential to the long-term success of internationally franchised fast food establishments. As satisfied loyal customers, their continued patronage is assured on a global basis. On the other hand, those who become dissatisfied customers of these same franchises may not only go elsewhere, they will most likely play an active role in persuading others to go elsewhere, as well. If fast food franchises are to be effective, they will need to deliver consistent, timely, quality meals and services to satisfied customers across cultures and national boundaries.

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Need for the study Pizza Hut is one of the leading players in the fast growing and highly competitive fast food industry. Researching and analyzing the customer satisfaction is a very vital aspect of their business strategy and long term success. Knowing what you like to drink and eat is a fairly basic human instinct. Similarly, people rarely lack an opinion about what they like, or dislike, about the places they go to satisfy their hunger and thirst – that is, the service they get when they are there. Increasing number of people, worldwide, are customers of the fast-food industry, which makes it all the more important for those who run such businesses to get to know their opinions and to adopt workable practices of measuring and improving the service they are offering. It is also in their interests to do it quickly. Fastfood businesses need fast-reaction solutions to consumer requirements if they are to flourish. If the company is unable to do this, there are plenty of other similar outlets to go to – and word spreads; if customers don’t like the service at one chain the chances are that they will not only take their custom elsewhere but also tell their friends and colleagues. The customer satisfaction surveys can help managers to assess the service quality of their own establishments in a timely and useful manner. Following periodic and repetitive sampling of customers' assessments of service

Page | 2 quality, managers can apply statistical process control and six sigma techniques to improve quality. In addition, application of such measures at each outlet can help managers to gain insight about the relative service and product quality of each specific restaurant they manage. This discovery of potential strengths and weaknesses at particular locations would present an opportunity to copy identified best practice elsewhere. Objectives of the report •

To study the customer preferences, taste and behavior in the fast food market.

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To become aware of the customer expectations from Pizza Hut.

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To critically analyze factors like taste, quality of food, ambience, delivery time, attitude of the staff working at Pizza Hut.

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To know how the customers rate the factors like hygiene and cleanliness in the restaurant.

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To analyse the impact of customer satisfaction on the long-term profitability of the business.

This report analyses the customer satisfaction of Pizza Hut, in Aundh area of Pune City between the age group of 20 to 25 years. The study is based on the findings from a customer satisfaction questionnaire filled out by 30 people in the age group of 20 to 25 years.

1. How often do you visit pizza hut? Aundh is a predominantly a residential area with a lot of working as well as college students between the age of 20 to 25 years residing there. It also

Page | 2 has a lot of families apart from this segment of the population. With the presence of quite a few IT companies in close vicinity and thereby working executives along with the student population there is a culture of eating out and ordering food from outside. The following figure 3.1 gives an idea about how often people in Aundh visit pizza hut. Figure 3. 1

From the above data, we interpret that 6.66 per cent of the respondents surveyed visit pizza hut almost daily. 20.34 percent visit the place a weekly. 37 per cent people visit pizza hut once in a month and 36 per cent of the people had visited pizza hut for the first time. This reflects that a good number of people do visit pizza hut more or less regularly, giving it a potential to expand and make profit in the Aundh locality. 2. Preferences of people in terms of going out or ordering in It is first required to know what per cent of the customer base prefer to eat in the restaurant and how many prefer to just get it delivered in the comfort of their homes. Though Pizza Hut mainly focuses on maintaining its image as leading casual dining restaurant with constantly repositioning itself in the market, it also earns a significant portion of its revenue from Home Delivery. Further, one must not forget that home delivery also involves a degree of customer service.

As per the survey, 66.67 per cent of the women folk prefer to dine-in the restaurant where as 60 per cent of men prefer the same. On the other side

Page | 2 about 40 per cent of men prefer to get a home delivery and the figure incase of women is approximately 33 per cent. Thus on an average about 63 per cent of the sample prefer to dine-in the restaurant and 37 per cent prefer a home delivery. This reiterates the fact that Pizza Hut is preferred for a sit down restaurant dining. This could be for numerous factors which we will see further in the report. Another observation here is that women prefer dining in the restaurant over home delivery. Once the behavior pattern of the people is assessed, we need to assess the experience, people had on visiting the restaurant. Customer satisfaction happens to be an important milestone, for each an every entity. So I decided to gather information on some surveys done on customer experience at pizza hut, Aundh. 3. Was the restaurant clean? Customers are getting more particular about cleanliness and hygiene these days. The restaurant will have to make sure that plates, cutlery, pans, floor, dustbins, premises have to be kept clean. No customer would like to visit a restaurant that has unclean tables, dirty menus or stained cutlery. Cleanliness plays an important role in maintaining the ambience of the place.

As per the survey conducted there were only a few customers who praised the cleanliness and hygiene the restaurant. 28% customers felt that the place was dirty. 37% customers felt that cleanliness was about average.

Page | 3 23% felt that the place was clean.10% felt that the restaurant was very clean and 2 % of the respondents were in praise of the cleanliness at the restaurant. Thus we can make out that most of the customers were not happy with the cleanliness and hygiene level at the restaurant. This can affect the business as people won’t prefer to visit the restaurant again. People these days want value for the money they pay. Hence Pizza hut should make sure that the restaurant and its premises are kept clean for it to survive in the market. 4. Was the service hospitable and friendly? Hospitality refers to the relationship process between a guest and a host. A customer is guest and the restaurant is the host. The people at the restaurant have to make sure that the customers are comfortable and are having a great time. They need to be polite, courteous, friendly, and soft spoken.

As per the survey conducted major part of the respondents gave a good feedback .They were pleased with the service that they were provided at the restaurant.36% of the respondents found the hospitality very good, about 33.33% found the service good.10% found the hospitality very good.

14%

found it average and 6.67% found were disappointed with the hospitality provided. Thus if the restaurant concentrates more on hospitality, they may become a leading player in the Aundh locality. 5. Did you receive what you ordered?

Page | 2 It is very important that the customers get what they need. Their orders need to be interpreted correctly and served accordingly. Customers won’t like to pay for something which they never demanded.

A survey was also conducted for the same.87% of the respondents found received what they ordered and 13% didn’t receive what they ordered. However the no window of error can be allowed here. All the customers should be served strictly as per the order placed by them. This is very much necessary to keep intact the reputation of the group.

6. Was the food of your liking? It is important that people like what you sell. Consumers who have a limited budget and time constraint want to spend their money on something that is quick and tasty, which is what has given rise to the fast food culture. If the restaurant can win its consumers on the basis of taste then it has an added advantage. This means that if the consumer is highly satisfied with the taste then he might ignore some other factors like price or customer service to some extent.

As per the graph above, 0 per cent of respondents rate the taste/liking of the food at Pizza Hut as poor, 33.33 per cent of people find the taste/liking

Page | 3 average, 33.33 per cent customers rate it as good, 20 per cent of customers rate it as very good and 13.33 per cent rate their liking as excellent. Thus people like what pizza hut offers and none of the respondents of survey has shown dislike towards its product. This gives pizza hut an edge as their pizzas are priced higher than that of their competitors. People might still go for pizza hut’s pizza despite of their cost, due to the taste and liking of its product. 7. Was the food served speedily? “Time is money”, it’s an old cliché that we all know and understand, but to what extent we really apply it in our business. Today people don’t have time. They have crunched schedules. People expect the restaurant to value their time. They want the food to be served quickly. If this doesn’t happen, customers might get irritated and might opt for some other outlet next time. These days Pizzerias often incorporate a time guarantee or a promise delivery within a predetermined period of time, perhaps specifying that late deliveries will be free of charge.

It can be interpreted from the above graph that 20 per cent respondents have had a bad experience of never receive their order on time, 26.67 per cent of respondents of the survey receive their order on time most of the times and a mere 13.33 per cent of the customers always receive their order on time. Thus it is quite clear from the findings that a majority of people say that they receive their food on time only sometimes and an average of 23.33 per cent of people receive their food on time most of times. This makes it quiet clear for the outlet that they need to work on timely delivery of the orders. They will have to have assess the reason leading to the delay, it

Page | 2 might be short man power, lack of knowledge regarding the process or the slow system etc.

8. What do you like most about the place? Pizza Hut has an appealing ambience which is one of the reasons why people enjoy dining at Pizza Hut. Unlike a few of its competitors its interiors are well designed and maintained, with a children’s play area, wash rooms and a waiting area for when the restaurant is very busy. Even the posters, wall hanging, the colour combinations used are quite attracting and appealing. The pricing suits most middle class customers with a lot of discounts and offers changing from time to time. The menu is also designed keeping in mind the values and taste of the Indian consumers and it offers a lot of Indian specialty toppings.

It can be interpreted from the graph that and 60 per cent of the customers like the ambience of Pizza Hut more than other things, 40 percent of respondents like the quality of food the most, around 46 per cent of the total respondents like the variety of food, 33.33 per cent of the respondents like the taste the most, 20 per cent of people like the service the most and only 6.67 per cent think that pricing is what they like most about Pizza Hut.

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9. Did you feel that you got value for your money? Value of a product means the relationship between the consumer's expectations of product quality to the actual amount paid for it. There are parallels between cultural expectations and consumer expectations. Thus pizza in Japan might be topped with tuna rather than onions and paneer, as pizza might be in India. For a firm to deliver value to its customers, they must consider what is known as the "total market offering." This includes the reputation of the organization, staff representation, product benefits, and technological characteristics as compared to competitors' market offerings and prices. Value can thus be defined as the relationship of a firm's market offerings to those of its competitors. Value can be defined by both qualitative and quantitative measures. On the qualitative side, value is the perceived gain composed of individual's emotional, mental and physical condition plus various social, economic, cultural and environmental factors. On the quantitative side, value is the actual gain measured in terms of financial numbers, percentages, quantity etc.

As per the graph above 13.33 per cent of customers felt that pizza hut is not worth of what you pay. But seems to be a very nominal number as majority of the people were highly satisfied with what they got for what they paid.46.67% felt that the pizza hut is worth and 40.00% felt that it is too good.

10. Will you visit Pizza Hut again in the near future?

Page | 4 Customer retention is very important for any business entity. This is important for expansion and growth as it leads to more profit. Loyal customers tend to bring in new customers through “word of mouth” publicity. This happens only when customers are satisfied with food, service, Place, ambience, hospitality etc.

As per the survey, 63.33 per cent of the people surveyed feel that they will definitely visit the restaurant again as they have a great experience when they come here. 26.67 per cent say that they will visit the restaurant occasionally and 10 per cent say that they won’t prefer visit the restaurant again as they were disappointed. Thus majority of the people opine that they will visit the restaurant again, which is a positive indicator.

11. Rate your overall experience on a scale of 5? Customer experience is an overall experience that derives from a number thing such as quality of food, price, ambience, service provided, premises etc. Pizza hut unlike its competitors has very good restaurants with good seating arrangements, waiting room, children’s area etc. the overall ambience of the place is quiet good, making it a casual hangout. The food is great, with pizzas with an Indian desi touch. Service provided at the pizza hut out lets is far better than that of their competitors. We asked the respondents to rate pizza hut on a scale of 5 and the result is shown below:

Page | 5 As per the graph above, 4 per cent of the customers surveyed are dissatisfied with the overall dining experience and have rated their experience 1 on a scale of 5. 12 per cent of the respondents have rated their experience 2 on a scale of 5. 17 per cent have rated 3 and percent have rated 4 on a scale of 5. This indicates the satisfaction level of the customers coming to Pizza hut in Aundh. Moreover 23 per cent of the customers have rated 5 on a scale for the great experience that they had.

CONCLUSION The results of the above survey conducted clearly reflect the success of the restaurant in providing a pleasant experience to its customers. Pizza hut sells pizzas, garlic breads, chicken wings, ice creams and a variety of other products. Thus Pizza hut offers a large variety of quality food. The restaurant is known for its ambience, unlike its competitors. Pizza hut has set up its outlets across the world with amenities such as children’s area, waiting rooms, rest rooms, attractive furniture etc.to make dining a better experience. This is one thing which has contributed towards customer satisfaction. Hospitality at the pizza hut restaurant, In Aundh received a positive compliment in the form of customer satisfaction. Majority of the customers feel that staffs at the Aundh outlet are friendly, courteous, polite

Page | 2 and helpful. The customers feel that pizza hut in Aundh gives complete value for money that you pay. Only concern that customers are disappointed with is the cleanliness at the Aundh outlet. People find the crockery and cutlery dirty, plates and pans lying on the floor and the stained ketchup bottles. The restaurant should make immediate provision for the same in order to keep aloof its reputation. The other thing that gives an edge to its competitors is the pizzas that are priced high as compared to its competitors. However other factors discussed above can help to overcome the high price charged by the pizza outlet chain as people might be willing to pay a high price for quality food and the dining experience.

Thus Pizza Hut, Aundh has already created its goodwill among its customers based on the food and service it provides. They need to make sure that they keep this image intact and continue to build upon customer satisfaction and make more and more customers brand loyal.

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REFERENCES

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Lower staff of Pizza Hut, Aundh

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Mr. William Selvaraj -Employee –Pizza hut, Aundh

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http://www.pizzahut.co.in/media/pdf/article%202.pdf

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www.scirbd.com

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http://en.wikipedia.org/wiki/Pizza_Hut#International_variations

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http://www.crm.pizzahut.co.in/customer_feedback.php?type=2

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www.pizzahut.com

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www.google.com

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www.survey.com