Final Project Report


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Pizza Hut - Operations project

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Final Project Report

  1. 1. PROJECT REPORT ON PIZZA HUT Submitted By: Shruti Bhatia (70) Vikas Bansal (88) Vipul Agarwal (90)
  2. 2. PIZZA HUT-The Introduction 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 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 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 an undisclosed sum.  1986:Delivery service, as a new concept, is initiated
  3. 3.  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 INDIA In India Pizza Hut has not included all kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian customers.
  4. 4. A critical factor in Pizza Hut’s 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. OPERATIONS STRATEGY At present Pizza Hut is following the below mentioned Operations Strategy Product Development: 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) Market Development: Pizza Hut has been spreading its network within a country as well as worldwide. In India it is the first one to enter in south Indian state Kerala. It has localized its menu according to the taste of the people in Kerala. LAYOUT Pizza Hut has its layout just similar to Process Layout. In its back office when the pizza has to be made i.e. when the KOT (Kitchen Order Ticket) is received than the following process is followed. Vegetable Cutting , Drinks Liquid Forming, Ice Cream making ,Pizza Base of different sizes(officially called Patty)* , Different Toppings for each types of pizza, Pizza baking, Drinks Making is done separately like a process. This is so because each customer demands differently and have different taste requirement.
  5. 5. Therefore it becomes important for Pizza hut to come up to their customers taste and preferences in order to make them long term customer. * Pizza base is formed of 3 different size-Personal, Medium and Family Size. The size is differentiated by weight and then the shape. That means the weight of Dough of Personal Pizza and that of Medium Pizza is different (weight not disclosed as it’s their internal information) LOCATION Pizza Hut set its outlet at places where huge crowd is always there especially at places where family comes. It calls itself a family restaurant rather than a young generation eating joint. This makes it different from other players in the industry like Dominos. And also it gives its franchise at a distance of atleast 7 Kms between two pizza hut outlets. SERVICE DESIGN 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. Standardization: For the purpose of Standardization they follow below mentioned steps
  6. 6.  TRAINING- Every new employee undertakes the training of 5 days which includes 3 Days Kitchen Handling and 2 days Customer Dealing. This training is not provided at pizza hut outlet but rather at a cities head office.  SCRIPTS: They have provided their employees with particular scripts that has to be spoken when similar situation arises Eg. When the customer enters employee have to say “Hi Mam /Sir. How are you? Welcome to Pizza Hut. You require table for 2/4/6.” When pizza is ordered they say “Pizza will take 15-20 minutes. Drinks will be served now (if ordered). Could I take the menu”  DOUGH: The different sizes of pizza are having different dough weight so as to keep all pizza bases at a same level. QUALITY MANAGEMENT To 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
  7. 7. department at the main office in Gurgaon. This department has the task to implement quality standards and know whether they are achieved or not. TECHNOLOGICAL CHANGES Now a day’s 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.
  8. 8. 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.
  9. 9. 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 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 it’s feeded in software. And in case the employee who has served is busy payment can be taken up by anyone else thereby not making
  10. 10. customer wait at all. Also it is secured as no one else except employee can use this software. Its transparent as its in written form. MAINTENANCE MANAGEMENT For the purpose of managing as well as maintaining machines there is GPM (General Purpose Maintenance) person available at every pizza hut outlet. He know how to repair MACHINE, HOW TO change temperature and incase of any failure how to temporary make the machine work. The have done AMC with the Yum Restaurant International Ltd for machine provided by them. For dish washers they have 5 yr AMC done. There is one IT person available to check system or software failure. This enables Pizza Hut to be prepared for any small breakdown affecting there business at any particular time. They have made a proactive management MATERIALS MANAGEMENT Since pizza hut has most of its inputs( vegetables, cheese ,topping sauce, imported vegetables) perishable, it has to be stored at a particular level of temperature. This is done by Restaurant Support System of YUM Restaurants. Whenever the things are taken from their Bills are issued to a particular outlet and these bills are paid monthly. This has reduced loss due to spoilage by a great extent. CHASE STRATEGY OF PIZZA HUT At 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.
  11. 11. 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. PROBLEMS FACED DURING THE PROJECT Information sharing is the most critical problem faced by us To reach pizza hut at those time when their staff is free and more open to share information