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Pizza Hut - Papers

Pizza Hut


began operation as a single pizza shop run by two brothers, Dan and Frank Carney, in Wichita, Kansas on June 15, 1958. The chain grew to 43 restaurants in 1963 and 296 in 1968. went public in 1969 and was acquired by PepsiCo, Inc. in 1977. By 1981 had become the largest pizza restaurant chain in the world both in sales and number of restaurants. At that time there were 5,025 domestic units and annual sales of almost $2 billion. Before 1984 saw no real competition from Domino's in the overall pizza market.
COMPETITION: NEED FOR HOME DELIVERY
The challenge of Domino's changed in 1985 when they opened 954 new outlets bringing their total to 2,839 which was the largest expansion ...

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Home Delivery that increased to $7 Billion from just $0.1 Billion in a span of 8 years.
In the time span of 1984 and 1985 the home delivery of pizza grew to be the newest and fastest growing fast food concept. People who had enjoyed dining out for pizza were also ordering delivery pizza for additional meals or even evening snacks. The market was opening up and becoming very successful. felt they needed to jump into this area of sales. By 1986 there was a surge of business in the pizza market. The main reason for this increase was the home delivery of pizza which had suddenly gained great popularity.
FRANCHISING CONCEPT & ITS DISADVANTAGES
had a logistical problem with the delivery aspect of sales being added to the market. Franchising was done for each restaurant opened. The initial fee was $15,000 for each system. The company or franchise also paid 4% of monthly gross sales to the company. An investment of $466,000 to $816,000 was made when the dine-in/carryout ...

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to established stores or the set-up of delivery-only facilities which involved less cost and less land area. The delivery-only facilities did not need to maintain large parking lots. They only needed a small area for the employees, including the delivery people. The company tried using a computerized central ordering system called the Customer Service Center (CSC). The use of one single number to order pizza from Pizza Hut sounded good but it was less than efficient.
EXPENSIVE AND INEFFICIENT CUSTOMER SERVICE CENTER
The principle was that all calls would go into one central computer that would direct the orders by fax to the appropriate store. There was a time delay in getting ...

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PAPER DETAILS
Added: 10/3/2006 09:25:56 AM
Category: Miscellaneous
Type: Premium Paper
Words: 1578
Pages: 6

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