business pizza hut term paper

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Pizza Pizza is an oven-baked, flat, generally round bread that is usually covered with tomatoes or a tomato-based sauce and often mozzarella cheese, with other toppings added according to region, culture or personal preference. Pizza has a long, complex and uncertain history that often inspires heated debate. Pizza as we know it today began in Naples in the Campania region Italy but the exact sequence through the many flavored flatbreads of the ancient and medieval Mediterranean to the dish we now call pizza is not fully understood. Since the late 19th century pizza has spread throughout the world. Pizza Hut Pizza Hut is a restaurant chain and international franchise based in Addison, Texas, USA specializing in American-style pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread. Pizza Hut is the world's largest pizza restaurant chain and is a subsidiary of Yum! Brands, Inc., whose restaurants total approximately 34,000 restaurants, delivery-carry out units, and kiosks in 100 countries.

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Page 1: Business Pizza Hut Term Paper

Pizza

Pizza is an oven-baked, flat, generally round bread that is usually covered with tomatoes or a

tomato-based sauce and often mozzarella cheese, with other toppings added according to region,

culture or personal preference. Pizza has a long, complex and uncertain history that often inspires

heated debate. Pizza as we know it today began in Naples in the Campania region Italy but the

exact sequence through the many flavored flatbreads of the ancient and medieval Mediterranean

to the dish we now call pizza is not fully understood. Since the late 19th century pizza has spread

throughout the world.

Pizza Hut

Pizza Hut is a restaurant chain and international franchise based in Addison, Texas, USA

specializing in American-style pizza along with side dishes including pasta, buffalo wings,

breadsticks, and garlic bread. Pizza Hut is the world's largest pizza restaurant chain and is a

subsidiary of Yum! Brands, Inc., whose restaurants total approximately 34,000 restaurants,

delivery-carry out units, and kiosks in 100 countries.

History of Pizza Hut

The journey of Pizza Hut began in 1958, when two college students and brothers from Wichita,

USA, Frank and Dan Carney, opened the first Pizza Hut restaurant at their hometown on June

15, 1958. After borrowing $600 from their mother, they purchased some second-hand equipment

and rented a small building on a busy intersection in Wichita. The result of their entrepreneurial

efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest

and most successful pizza restaurant company in the world.

Page 2: Business Pizza Hut Term Paper

When Carneys were setting up their first restaurant, the building had sign with room for just nine

characters. They wanted to use “pizza” in the name, which left room for a word with only three

letters. A family member suggested the building looked like a hut – and Pizza Hut was born.

At the same time Pizza Hut was growing in and around Kansas, Shakey's Pizza was developing a

stronghold along the West Coast. The competition provided Pizza Hut the impetus to evaluate its

mission and direction. Dan and Frank Carney saw Shakey's expanding into their territory and

realized that they needed to determine if Pizza Hut should be in the entertainment business or if

it should be a neighborhood pizza restaurant. They decided to stick with the neighborhood

business and realized that they needed to have a good standard image. The Carney brothers

began to systematize operations and building designs to counter the competition from Shakey's.

The franchise network continued to grow through friends and business associates, and by 1964 a

unique standardized building appearance and layout was established for franchised and

company-owned stores, creating a universal look that customers easily recognized.

The very first or prototype version of a Pizza Hut restaurant building which was mostly used from 1950 to 1961. It

is still used at only four Pizza Hut Locations.

By 1970, with 314 stores nationwide, Pizza Hut went public on the New York Stock Exchange

under the stock ticker symbol PIZ. In 1977, Pizza Hut was acquired by Pepsico, who later also

bought KFC and Taco Bell. In 1997, the three restaurant chains were spun off into Tricon, and in

Page 3: Business Pizza Hut Term Paper

2002 joined with Long John Silver's and A&W Restaurants to become YUM! Brands. Pizza Hut

has opened Pizza Hut Express which specialize in small 9" pizzas. The oldest continuously

operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district

known as Aggieville.

Pizza Hut: TodayPizza Hut is not only the acknowledged leader of pizza industry worldwide, but it is also the

world’s largest pizza chain. It has more than 12,000 restaurants across 100 countries, employing

more than 300,000 people, serving 1.7 million pizzas everyday to more than seven million

customers. Pizza Hut is the highest-flying brand of Yum! Restaurants International, which is also

the parent company of KFC, Taco Bell, A&W and Long John Silvers. Taking other four brands

with Pizza Hut, Yum! Restaurants International makes up the world’s largest restaurant group.

Pizza Hut in Bangladesh

Pizza Hut opened its doors to the Bangladeshi market on the 6th of December, 2003 and ever

since then it has been one of the most popular fast food outlets in Bangladesh. Transcom Foods

Limited, a concern of Transcom Group is the franchisee of Pizza hut in Bangladesh. With a

seating capacity of 220 persons, the first outlet of Pizza Hut is located on South Avenue,

Gulshan-1. Currently there are three outlets, two in Dhaka which are situated at Gulshan-1 and

Dhanmondi, while the other at GEC Mor, Chittagong. Another 2/3 outlets are set to start

operations soon. In the next three years, Pizza Hut plans to roll out another 4 outlets in

Bangladesh.

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All foods served in the outlets in Bangladesh are halal. Pizza Hut Bangladesh has an annual all

you can eat offer during the Islamic holy month of Ramadan. One thing can be noted that Pizza

Hut in Bangladesh charges the most among its operations in the countries of the subcontinent

and the menu is also the most limited in the region. Currently the outlet is offering two different

menus for vegetarian and non vegetarian along with different tastes soup, pasta, salad, and sea

food. While observing and analyzing we came to know that the price offered in Pizza Hut is

competitive and food-lovers would not be paying an extra taka for enjoying the International

Standard food.

The Dhanmondi outlet of Pizza Hut was opened in March, 2008. In our project we will be

focusing on the new outlet of pizza Hut at Dhanmondi.

Address of Dhanmondi Outlet

754, Sat Masjid Road, Dhanmondi R/A,

Dhaka-1209, Bangladesh

This outlet is opened from 11am to 11 pm.

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Mission statement

The mission of Pizza Hut is

To provide the perfect mix of great food, great service and great place at a great value to the

customers who are looking for a grand experience.

They believe in positive intension, and maintain a strong internal environment by developing

their competitive work force. The latest technological tools along with the best support systems

from their franchiser YUM! International is used to ensure easy workflow and to make the

restaurants the favorite in the Country.

Description of the Physical Setting and

Internal Environment

Physical Layout

The new outlet of Pizza Hut is situated in one of the most attractive areas of Dhanmondi 12/A. It

is very easy to go there as all form of transportation is available. People can park there car and go

upstairs by the stairs that take them directly to the restaurant. At the front of the building in the

second and third floor the logo of Pizza Hut has been attached so that from outside any one can

recognize the building of Pizza Hut.

The restaurant is situated in the second and third floor of the building. It has been decorated as a

duplex. The take away counter is at the right of the stair in the second floor. After entering the

restaurant in the second floor, any one will find the kitchen in the left side and the counter in the

right side.

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The second floor has got a small space. This floor is decorated

mainly with furniture for couples and the third floor is mainly used

for large groups and arranging parties. The sitting arrangements

for groups are made with sofas with red in color and a long table.

For couples there are cane chairs with square wooden tables. All

the tables are arranged beautifully with square sized plates, tissue

paper, fork, knife, salt case, and red pepper case. Anyone can sit

by the glass window and enjoy the scenic views of Dhanmondi.

Taking the stair from the second floor any one can go to third floor which is bigger than the

second floor. In the third floor there is a kid’s play ground which is well equipped with color full

toys. It increases the joy of both parents and children as parents can enjoy their meal easily when

their kids are playing happily in the play ground. The decoration of the Pizza Hut is very

impressive. They have decorated the place with different types of wall posts and pictures. The

color the wall they have used red and cream color. At the top of the wall they have placed glass

with pictures of leaf, tomato, mushroom, onion, and cheese.

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The third floor is more specious. At one side of this floor there

is a wooden wall self which is filled with glass bottles filled

with colorful staffed onion, ginger, carrot, mushroom, olive

and different raw materials that are used for making pizza.

There is a beautiful wall post in left side of the stair which

displays how the pizza is being made. There are also some

posters which displays information about the new arrivals in

this outlet.

The magnificent interior decoration of Pizza Hut attracts the

customers as a magnet and they feel all the time to come here and enjoy their leisure time. The

decoration is has been made comfortable for both the customer and the employees. So that

employee can work easily and serve the customer better. This has increased their productivity

and made distinct from others.

In this outlet management has tried to make the customers

aware about steep stairs by posting cautions in different place.

like- “Caution !Watch your Step”.

To make the customers careful about the glass walls by

posting caution like-“Do not Lean”

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The Dhanmondi outlet of Pizza Hut has the facility of neat and tidy washroom in both floors.

Both the washrooms are situated in one corner of the floors and both floors have good number of

basins to wash their hand with liquid soaps. All the time the cleaners are cleaning the floor and

tables in front of the customers so that customers can get the idea of their cleanliness. The whole

settings of Pizza Hut have made it distinct from others.

Accommodation

The Dhanmondi outlet of Pizza Hut can serve around 150 customers. Their sitting arrangement is

for two types of customer groups:

1. For Groups

2. For Couples.

One type of sitting arrangement for large groups where ten people can easily be seated and enjoy

their food with their friends and family members. Another type of sitting arrangement for small

groups consists six people can sit together. And couples have face to face view to serve their

emotions. There is only one counter to serve ice-cream, beverage, and meals.

Physical Environment

Physical environment plays a vital role in to generate customer satisfaction and to make the

business successful. Although Pizza Hut is an international chain restaurant it has always tried to

blend our cultural with their organizational culture which has make them different from other

restaurants. For this reason Pizza Hut has been able to offers the same great taste, wonderful

dining experience and excellent service at affordable prices as the first international chain

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restaurant in Bangladesh. The management of Pizza Hut is very well organized and they do not

compromise with the food quality and generating customer satisfaction.

To give an overview of Pizza Hut now we will give part by part description of the physical

environment of Pizza hut which will help to understand why customers feel so attracted towards

Pizza Hut and dragged to it.

Lighting:

A well lighted space always charms people to dream about their fantasies. The great think about

Pizza Huts is that the lighting system of Pizza Hut is not dull like typical fast food restaurant.

Good number of Ceiling light is flushing the entire place there which creates beautiful view both

in insight and outsight. They have used spot lights to create beautiful view insight the restaurant.

The lighting is very bright, which makes everything look clean and inviting. They have placed

additional lights where there are wall portraits. Overall, the lighting is quite good and adequate to

make the place more attractive.

Noise and Music:

There is no specific level of silence required and applicable for the customers of Pizza Hut. This

is a gentleman’s place and teenagers hang out here, too. Pizza Hut has got a quiet a big space as a

result noise can not create disturbance to the customers. Always there is some music playing

around which gives the customers a festive mood. The volume is light, making the environment

more pleasant. The management basically prefers fusion, slow rock, techno and instrumental sort

of genre. The music makes a festive atmosphere, but does not seem overwhelming. When

people dance with the music in any birthday party and other parties the whole environment

becomes more joyful. The whole compound being completely airtight, outside road noises are

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not that much to hamper anyone. But still the inner room is comparatively more protected from

outside traffic noises.

Odor:

Whenever a person walks in the door of the Pizza Hut, he/she is immediately overwhelmed by

the strong smell of yummy fresh pizza which anyone can hardly escape. People feel to rush

towards insight and have a tasty pizza. As the waiters are always serving pizza along with pasta,

soup and other food items, always the air is filled up with the smell of delicious foods which

increases customer’s appetite. Other than that the Pizza Hut uses different types of air freshener

to keep the air fresh.

Technology Used

Pizza hut uses all modern technologies in carrying out their daily operations which helps both the

employees and management to carry out their operations effectively. When we talked with the

management we came to know that most of their equipments are brought from New Zealand,

China, Germany and America. the technologies that are used by them in their day to day

operations are described below--

Smoke Alarm:

Pizza Hut uses smoke alarm to get the signal of fire. They have attached this type of alarm both

in kitchen and also inside the restaurant.

Fire Alarm:

Pizza hut uses fire alarms which will give danger signal to everyone if any fire breaks out inside

the restaurant.

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Electronic Cash Box:

Use of electronic cash box helps the cashier to manage the cash box properly and efficiently. It

also helps the cashier in managing the time effectively. The authority can give service quickly to

the customer.

Order Placing Machine:

Pizza hut has given their waiters the technology of

order placing machine so that waiter do not have to go

inside the kitchen to give information about the

orders. They use the machine and can transfer the

order to the cook.

Air Condition:

Pizza Hut is fully air conditioned with modern air condition.

Sound System:

Pizza Hut has got the modern sound system to entertain the customer. Different modes of music

are played according to the condition of the environment.

Modern Cooking Machine:

In Pizza Hut the cooks are well equipped with the modern cooking machines which help them to

make different foods in right temperature and taste and to maintain the food quality.

Electronic Payment:

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Pizza Hut offers its customers the service of electronic payment system. Any customer having

VISA or Master Card can pay their bill by using this card.

Coffee Making Machine:

Pizza Hut uses coffee making machine to make coffee automatically.

Other Facilities

Pizza Hut never compromise with their quality. They are maintaining a international standard of

their food and service to satisfy the Bangladeshi customers. Other than this basic function Pizza

Hut is also giving other facilities to their customers to differentiate their restaurant from other

ones.

They have different offers in different festivals like Pohela Boishakh, Valentines Day,

and for Ramadan which encourages their regular customers to feel Pizza Hut as their

own.

Pizza hut wish their customers over phone on birthday occasion. Pizza Hut arranges

birthday parties, where their mascot, 'Pooch' appears in person to entertain the children.

Birthday parties’ arrangement proved to be most successful and Pizza Hut gives them

extra facilities like Serving party cake or wishing them with card on behalf of the

company, giving discount.

Kid’s corner helps parents quite a lot for enjoying food because sometimes kids attitude

pressurize parents to leave. The innocent entertain in kids corners mentally raises

pleasure for having food mostly enjoyed by parents. Pizza Hut we want to add value for

families with kids aged between 4-10. They have a kid's area equipped with slides, spring

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animals etc. for them to be entertained. For the

tiny toddlers they have baby chairs and bibs.

Security guards from Group4 Securicor are there for

their safety and helping the customers for parking. Not

only showing the way to door, in rainy season we find

them standing with umbrellas to keep customers out of

reach of rains.

Food Items

Pizza Hut is passionate about making and serving the best pizzas. And that includes going to any

length to make the customers experience with Pizza Hut an enjoyable one. The signature pizza

crusts at Pizza Hut are Pan Pizza, Italian Pizza, Thin Crispy, Stuffed Crust, the Big New Yorker,

the Sicilian and the Hand Tossed Pizza. Initially, two of these crusts are served at the new outlet

in Dhanmondi- Pan Pizza, which is golden brown and crisp on the outside, and light and fluffy

on the inside; the Italian Pizza, made with a traditional Italian sauce, with a thin and crispy crust.

Other than pizzas, Pizza Hut also offers a range of delicious Soups, refreshing Beverages,

scrumptious Pasta, fresh and crispy fruits and vegetables (and dressings) at the Salad Bar, and

delightful Desserts.

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Organization Structure

Pizza Hut is determined to maintain a strong organizational culture by following specific and

strict guidelines and rules for conducting the business. They maintain a formal chain of

command. This structure is very much important for the accuracy of their operation. It is a

franchise restaurant of the original Pizza Hut and the renowned Transcom group is the franchisor

it.

From our interview with the Pizza Hut authority we came to know that the chain of command

is divided into two parts. One part is the “Restaurant Support Center” which is the supreme

authority for both the Pizza Hut and KFC (two franchised restaurants owned by Transcom

group). Another is the each outlet’s own employees.

Although the Pizza Hut authority denied disclosing all information about the responsibilities of

each post, from our limited information we will try to draw a picture of the chain of command of

the Dhanmondi Outlet of Pizza Hut and will also try to differentiate their roles.

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Restaurant Support Center

Restaurant support center has been established by the Transcom group for monitoring the

operations of both the Pizza Hut and KFC. The franchisor for both of these two restaurants is

Transcom group. This support center is situated in the upper floor of the KFC building in

Gulshan-1. The main responsibility of this center is to monitor the operations of Pizza hut and to

Executive Director

Mr. Akku Chowdhury

Executive Director

Mr. Akku Chowdhury

General Manager / Corporate Manager (currently the post is vacant)

General Manager / Corporate Manager (currently the post is vacant)

Area Manager

Mr. Tanvir Akhtar

Area Manager

Mr. Tanvir Akhtar

Associate Manager of IT

Associate Manager of IT

Associate Manager of Supply Chain

Associate Manager of Supply Chain

Associate Manager of Human Resource

Associate Manager of Human Resource

Associate Manager of Accounts

Associate Manager of Accounts

IT ManagerIT Manager Supply Chain Manager

Supply Chain Manager

Human Resource Manager

Human Resource Manager

Accounts ManagerAccounts Manager

Assistant Manager of IT

Assistant Manager of IT

Assistant Manager of Supply Chain

Assistant Manager of Supply Chain

Assistant Manager of Human Resource

Assistant Manager of Human Resource

Assistant Manger of Accounts

Assistant Manger of Accounts

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help them to achieve their goal by providing essential resources. The Executive director Mr.

Akku Chowdhury is the figure head person of Pizza Hut. He acts as a spokesperson by

transmitting information to the outsiders. He is involved with the strategic decisions made for

Pizza Hut. The managers of IT, Supply Chain, Human Resource, and Accounts are responsible

for the relevant operations. They help the outlet managers to carry out their daily operations

without any disturbance. If the restaurant managers face any problem the managers of restaurant

support center assist them in solving that problem by providing adequate advice and resources.

Organization Structure of Pizza Hut (Dhanmondi Outlet)

Page 18: Business Pizza Hut Term Paper

Role Differentiation

Although Pizza Hut employees work as a team, every employee has specific and strict guidelines and

rules for carrying out their roles as a part of the team. Altogether there are 68 employees working in the

Dhanmondi outlet of Pizza Hut. As we have mentioned earlier they have a formal chain of command and

the higher level employees always monitor the lower level employees. Although lower level employees

are not included in the decision making system, lower level employees are given every kind of support so

that they can perform their role properly. In terms of role playing each of the employee in Pizza Hut has

certain role which are discussed below-

Restaurant General Manager (RGM) is the highest position in every outlet of Pizza Hut as well as the

Dhanmondi one also. The responsibility of this post is to supervise the performance of the employees

working under him and to help them to solve the problem that arises while carrying out daily operations.

Dhanmondi Outlet has only 1 post for a Restaurant General Manager.

Assistant General Manager (AGM) helps the Restaurant General Manager in carrying his job. He does

almost the same things what RMG does. His position becomes more important when the RGM is outside

the restaurant or when then RGM post is vacant. Dhanmondi outlet has only 1 Assistant General

Manager.

Shift Manager is a very important role in Pizza Hut. The Dhanmondi Outlet has two shift managers.

Shift Managers are directly related with the lower level employees who mainly carry out the whole

operation. Under two Shift Manager 64 employees work as a team. Their main effort is on monitoring

the task the employees who are working under him and provides information and directions time to time

to run the operation smoothly. He also motivates the employees by intrinsic or extrinsic reward when

required.

Team Members are the core part of the Pizza Hut’s organizational structure. Without these people it is

not possible to run the show. The whole operation is mainly carried by them. This team member includes

cook, cashier, waiter and also the dish washer.

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At Pizza Hut Cashier is a very responsible position. For this reason Pizza Hut has appointed a full time

employee for this position. He prepares the bill and collects it from the customers. To make his job easier

Pizza Hut authority has equipped the cashier with computer operated machine which has made his work

easier. The help of computer aided machine gives the cashier relief from the fear of money stealing. It

also helps the Cashier to upload the information about transactions easily and swiftly.

Cooks play an important role in increasing the fame of a fast food restaurant. Therefore the role of the

cook is very crucial. With the help of the automated cooking machine cook prepared food for the

customers. As the making of food mainly depends on the machine, the cook has to have good knowledge

about operating the machine. The Cook has some helping hands who assist him in preparation of food for

customers.

Waiter is also an important part of the whole team in Pizza Hut. Their duties include taking orders from

the customers, delivering the orders to the kitchen through automated ordering machine, informing the

cashier about the orders, and to serve the food to the customers. They also help the customers in choosing

orders from the long list of their food items by suggesting their own choices and from their experience

over previous customer’s likings.

Cleaner is a very significant job in a fast food restaurant like Pizza Hut. Pizza Hut has a group of cleaner

to maintain the hygiene and shininess of all the stuffs from their floor to plates. The group of cleaners is

always busy with their brushes to maintain the cleanliness of the whole restaurant. They also clean the

tables after the customer lefts the table.

Security is critical post in the Pizza Hut for ensuring the safety of the customers. Pizza Hut hires Security

people from the Group 4 Securicor (security providing organization). They are well trained and well

equipped to ensure the security of the customers. When customers enter in the Pizza Hut they check the

customers with the metal detector. They also help the customers by showing the parking area to park their

car.

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Coordination Mechanism

In the roll differentiation part we have talked about the responsibilities of the employees. The

management coordinates their work by following the formal chain of command strictly. Pizza Hut

believes in HWWT (How We Work Together), concept, because only by working together an

organization can build a great team and achieve the goal. The communication system is mainly upper to

lower order. But if the lower order employees face any problem they can contact with their manager.

Pizza Hut always tries to satisfy its customers by their hospitality and quality food. As a result from the

entrance to the Pizza Hut up to coming out, customers are in a fantasy world. After entering in the

restaurant waiters welcomes the customer cordially and asks the customer whether they have any

reservation or not. If they have the waiter show the way to that table. If they do not have any reservation

they guide them to a table which is suitable for them.

After that the waiter takes the order from the customer and passes the order in the kitchen

through automated machine. Pizza Hut always has the stock of required raw materials. So they

never face any problem in fulfilling the customer order. Within 15 minutes the waiter serves the

ordered food in the table and asks the customer if

anything is further required.

Pizza Hut tries to maintain quality in all the sectors that’s

why they have a strong team of cleaner. Their task is to

clean their floor in five minutes interval which gives

consumer an extra satisfaction of cleanliness.

When the customer complete their meal and preparing to leave the Pizza Hut the security guard

says good bye and to visit the Pizza hut again.

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Human Resource Management

Human is a very crucial part in the field of restaurant business. The efficiency and proper skill of

employees is one of the key components to success in today’s competitive world of business. As

Pizza Hut is a big organization, the Human Resource Manager always has to very careful in

handling the group of employees. For the management of human resources, a typical manager

has to move through several different processes and procedures. He has to have a good

understanding of the labor laws and civil laws of a country. Here we will discuss the processes of

recruitment, training, performance evaluation, and feedback from the perspective of Pizza Hut.

Recruitment

Pizza Hut follows elaborate recruitment process for all levels to ensure that the most deserving

candidates are employed. The recruitment of the employees at Pizza Hut differs depending upon

the position for which the person is being recruited. In Pizza Hut there are two types of

employee-

Full time- who works for 9 hours a day

Part time-who works for 5 hours a day

For the positions of chef, cashier, and waiter vacancy announcement is published in the

newspapers.

A person applying for the position of chief chef needs to have at least a diploma in

catering management and at least five years of experience in a relevant field.

For the position of cashier, the person needs to be a graduate degree in accounting and

must have a minimum of two years of experience. The person also should be smart and

must be able to speak English.

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The requirement for the position of waiter is minimum Higher Secondary degree with a

command over spoken English with good communication and team skills. The person

should have the capability of interacting with people, must be smart, and must be

intelligent. The age limit for the post of waiter is maximum 25 years. Experience is not

required for the position, but a person having experience will be admired. Any person

having previous working experience in Pizza Hut or KFC is given priority.

The recruitment of cleaner is based on references.

While recruiting Pizza Hut gives a lot of emphasize on the ability of interacting people and

smartness as the crucial part of the job of team members is to interacting with people. To

get the job as team member candidates have to give written exam. Based on the written and

interview candidates are recruited. Although the minimum requirement for team members is

Higher Secondary Level but we found out that most of the team members are undergraduate

students of different universities. One of the employees whom we talked with was a graduate

on Hotel Management from a Darjeling University.

Training

Before beginning the service employees undergo extensive training program to enlighten them

about the organizational culture and processes. The management of Pizza Hut arranges training

sessions for newly recruited employees. When Pizza Hut started its business it arranged a

training session in India for its 40 newly recruited employees who were trained by the

management of Indian Pizza Hut. There they got the training on how to behave with the

customers, how to take orders, how to take carry out orders, how to serve the foods, etc. Now the

employees are trained in Bangladesh. They also learn from their experience while caring out the

daily operations.

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Performance Evaluation

Evaluating performance is very difficult. But Pizza Hut management has taken different steps to evaluate

the employees’ performance effectively. Their appraisal system is based on performance, so that

their employees are always enthusiastic to serve their best, which ensures a healthy and

competitive internal environment, as they know that their work is always appreciated. There taken

steps are described below-

Pizza Hut works on the CHAMPS standard

Cleanliness

Hospitality

Accuracy

Maintenance

Product

Speed

The 'CHAMPS check' is a tool used to ensure consistency of service and product quality across

the entire Pizza Hut estate.

The Pizza Hut authority collects customer’s feedback about the employee’s service,

employee’s time effectiveness, cleanliness, quality of food and the hospitality of the team

members. Based on the customer’s feedback employee earn points about their service and

efficiency.

In every three months every outlet of Pizza Hut is evaluated by the franchisor to ensure

that the Bangladeshi franchisee (Transcom Group) is maintaining the international

standard of Pizza Hut. A group of people visit the outlet without previous notification and

rate the employee’ service and the restaurant as a whole.

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The management observes the employees’ behavior in the work place and rates them.

Motivation

Pizza Hut motivates its employees according to their needs. The team members get both the

intrinsic and extrinsic reward. All the team members get half amount of their salary as an

intensive in very three months.

Team members get medals as recognition of their excellent service to the company. Every month

one employee is nominated to receive a medal. The employee receives this medal in the meeting,

in front of everyone.

Every team member gets a certificate from the Pizza Hut showing which he can get job in any

outlet of Pizza Hut in anywhere of the world.

Pizza Hut also has evaluation system for all hierarchical levels, which always gives the

room for improvement for everyone.

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Stakeholders

Customers

Customers are the most important part in every organization; in pizza hut it’s not exceptional. Pizza hut

also give special afford to satisfy their customer. Pizza hut is an international franchise company. When

they came in Bangladesh for the first time they segmented upper class, upper middle class, middle class

besides young generation and family are highly segmented.

Customer satisfaction:

To satisfy customer pizza hut is always so careful. And most of the time they are successful to satisfy

their customer. If someone goes their then he or she will find that there are waiters standing in front of the

gate to welcome you. Then one waiter will take you to the place where you want to set. Then the waiter

will give you a Menu a asked you what can he bring for you. If you are unable to choose anything then

the waiter will help to order. When we went there we find all this characteristics from their waiter.

Besides at the time of paying the bill they will give you a customer feedback letter. Customer can give

their feedback to that letter. Pizza hut is doing all this things only to satisfy the customer.

We did a survey about pizza hut’s customer and tried to find out what they think about pizza hut?

We did our survey inside pizza hut and as well as in our university. According to our survey we find that

Why people prefer pizza hut?

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According to our survey we find that majority portion of employee think that pizza hut is a brand

product so only for the brand name they go to pizza hut. In our survey we get that 28% think that

pizza hut is a high quality food, 60% think that pizza hut is a brand product and 12% think that pizza

hut only shows status.

Do you think pizza hut’s food is tasty?

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Different people have different opinion about that taste of pizza hut’s food. But after our survey we find

that majority portion of customer think that pizza hut’s food is tasty. According to survey 72% percentage

thinks that pizza hut’s food is tasty and 28% think that pizza hut’s food is not tasty.

Do you think pizza hut’s price match with its food?

Price is a fact because compare to other fast food restaurant the price of pizza hut’s food is little bit

higher. And after our survey we get that majority portion of customer think pizza hut’s price doesn’t

match with its food. According to our survey 40% think that pizza hut’s price match with its food and

60% think that pizza hut’s price doesn’t match with its food.

How do you think pizza hut’s environment is?

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Environment is a very important fact because when you go to a place you want a peace place. And only a

nice and beautiful environment can give you peace. According to our survey we find that majority portion

of customer think that pizza hut’s environment is well decorated. According to our survey 76%

percentage thinks that it’s well decorated, 20% percentage thinks that it’s moderately decorated and rest

of the other, like 4% percentage thinks that it’s medially decorated.

Do you think pizza hut is in suitable place?

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In Bangladesh there are only there branches of pizza hut. So we did a survey about the place of pizza hut.

We tried to find out wither pizza hut is in suitable place or not. And after our survey we get that majority

portion of customer think that pizza hut is in a suitable place. According to our survey 76% percentage

thinks that pizza hut in suitable place and 24% percentage thinks that pizza hut is not in a suitable place.

Owners

Though pizza hut is enlisted in America stock exchange but in Bangladesh it’s not enlisted. In Bangladesh

pizza hut is belongs to Transcom Food limited. They bring pizza hut as a franchise company.

Suppliers

Pizza Hut is a franchise company and it is highly sensitive to maintain their quality. To maintain their

quality pizza hut collect their raw material from abroad. Only few raw materials they collect within

Bangladesh like onion. Pizza hut keep inventory for 7 days. After 7 days they again restore their raw

material. Pizza hut store their raw material in “Mohakhali”

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Competitors

Pizza Hut is a franchise company. In Bangladesh like pizza hut there are some franchise companies which

are the competitor of Pizza Hut. Among them KFC is very competitive. Besides Franchise Company there

is some local company like Sharma house (which is special in making Sharma), Helvetia (famous in

broast chicken), American Barger (which is famous in Barger), Dominous Pizza (which is famous in

pizza).

Employees

Employees are the core part of the Pizza Hut. Therefore the management cares them a lot. in the earlier

part we have already talked about the employees and their different roles. In this part we will now talk

about how the employees feel about the Pizza Hut.

Employee Satisfaction:

In Pizza Hut the employees are satisfied with their salary as they are paid more than the other

restaurant workers. They also have the opportunity to earn more from the tips given by the

customers and from the performance appraisal for excellent service.

They are well motivated to work in the Pizza Hut because they get satisfactory bonus several

times and other facility like transportation, medical facility etc.

Employees like the environment of Pizza Hut.

They are satisfied with the behavior of the customers as well as the managers.

Problem Detection

High price: The price of Pizza Hut is not affordable to every one; if we compare with other good

qualities food the price of pizza hut’s food is very high. It’s not economic in Bangladeshi perspective.

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Home delivery: In foreign country pizza hut is providing home delivery but in Bangladesh pizza hut is

not providing any home delivery. So we are highly missing a facility.

Online order: In foreign country pizza hut opened this new facility that they take order through online.

Internationally pizza hut is giving this facility but in Bangladesh pizza hut is not providing any online

order facility.

Few outlets: In Bangladesh there are only three outlets one in Chittagong and the other two are in Dhaka.

So the people of other district are missing this world class food.

Packaging: Obviously pizza hut is providing a very good packaging but in pizza hut’s packet there is no

handle to carry the packet. So if anyone wants to carry the packet at a long distance then it will be disaster

for him or her.

No female waiter: In pizza hut there is no female waiter so female customer may face problem to deal

with male waiter.

Car parking: Though the car parking is good in Gulshan pizza hut but in Dhanmondi pizza hut car

parking is big problem. In Dhanmondi, pizza ht is located in Shat Mashjid road, road 12/A. in the ground

floor the Star Kabab is located which is also very famous in Dhanmondi. So the problem is there is no

separate car parking space for pizza hut, those who come in pizza hut they have to keep their car in

general place alone with other car. Besides in Dhanmondi pizza hut at a time only few cars can park.

Decoration problem: Though Gulshan pizza hut is well decorate but Dhanmondi pizza hut is not that

much well decorate like Gulshan pizza hut, because if we go in

Stare problem: In Dhanmondi pizza hut the stare is very risky any time there may be accident. To avoid

accident every place they wrote “watch your steps”.

Few items: In Gulshan pizza hut there are some items that are not available in Dhanmondi pizza hut so

pizza lover who came in Dhanmondi pizza hut they may fell disappointed when they will find that there is

few items missing.

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Recommendations

In pizza hut though there are small, medium and family size pizzas but those are expensive. To

meet the middle class peoples need pizza hut can introduce a new type of pizza which will be low

priced than the other pizza’s price.

Pizza hut can introduce home delivery service which will help people to order from home and get

their desire pizza in home.

Pizza hut should introduce online order facility so that people can order through online.

Pizza hut should introduce in other district, so people of other district will get the pizza hut.

In pizza hut there should some female waiter. So it will help the female customer to place their

order.

In Dhanmondi pizza hut they should provide all the food items those are available in every pizza

hut outlets.

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Conclusion

Pizza Hut is the world’s number one fast food restaurant which has been meeting the appetite

of people all over the world for 50 years. In Bangladesh also they have became successful.

The Dhanmondi outlet of Pizza Hut is very new. Although this outlet has few limitations they

have space to develop a lot. Their excellent team workers can support to do it. If they can

overcome these limitations they will surely do a lot better than present.