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QUALITY ANALYSIS ON PIZZA HUT

FINAL REPORT
Group Members
Hammad Akbar Irej Mahmood Junaid Hussain Umer Farooq Fayzan Hassan E08-141 E08-044 E08-047 E08-116 E08-039

2012

Pizza Hut, F-7 Branch, Islamabad

TABLE OF CONTENTS ORGANIZATION INTRODUCTION ..................................................................3 PIZZA HUT EMPLOYEE INVOLVEMENT AND RELATIONSHIP ............4

Introduction ............................................................................................................4 Motivation ..............................................................................................................4 Employment Classifications ..................................................................................4 Exempt Employees: ...............................................................................................5 Part-Time: ..............................................................................................................5 Temporary Employees: ..........................................................................................5 Equal Opportunity ..................................................................................................5 Employees Targets................................................................................................5 Wages and Salaries ................................................................................................5 Training and Educations ........................................................................................6 Employee Development Programs ........................................................................6 Training Topics ......................................................................................................6 Videos ....................................................................................................................6 Performance Appraisals .........................................................................................6 Employees Rank ....................................................................................................7 Awards ...................................................................................................................7 Employees training ...............................................................................................7 Employees Pays .....................................................................................................7 Job rotation .............................................................................................................7 Security ..................................................................................................................8 Performance ...........................................................................................................8 Employee empowerment .......................................................................................8

Quality cost ............................................................................................................8

CUSTOMER SATISFACTION .............................................................................9 Atmosphere that Attracts the Customer .................................................................9 Customer Complains Handling ..............................................................................9 Staff that is Always Ready to Help ......................................................................10 Listening to Voice of Customer ...........................................................................10 Strengths...............................................................................................................11 Weaknesses ..........................................................................................................11 Opportunities ........................................................................................................11

BENCHMARKING OF PIZZA HUT (Junaid Hussain) ...................................11 Performance Benchmarking.................................................................................11 Qualitative Benchmarking ...................................................................................12 Planning ...............................................................................................................12 Compare ...............................................................................................................12 Review..................................................................................................................12 Improvement ........................................................................................................13

A SURVEY ON PIZZA HUT DELIVERY PROCESSES.................................14 GROUP PHOTO TAKEN IN PIZZA HUT F-7 BRANCH ...............................16 QUESTIONAIRS ...................................................................................................17

ORGANIZATION INTRODUCTION
The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney; were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the brothers quickly saw the potential of this new enterprise. After borrowing $600(US) from their mother; they purchased some second-hand equipment and rented a small building on a busy intersection in their home town. 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 in the world.

Figure: Logo of Pizza Hut

Pizza Hut came to Pakistan on December 14, 1993 and took the culinary scene by surprise. Since then Pizza Hut has set up 36 outlets all over the country, with plans of opening more in the near future. Pizza Hut has set new standards of dine-in restaurants and quick delivery of oven-hot pizzas, and can be considered as a pioneer in starting the trend of franchises in Pakistan. Pizza Hut currently has a work force of approximately 2000 under its umbrella; making it the biggest employer amongst all the restaurants. Pizza Hut in Pakistan has seen tremendous growth in the past couple of years. During this time period, the brand has contributed heavily towards the development of the society as a whole. It is responsible for creating job opportunities for the youth of the country both directly as well as indirectly. Pizza Hut is one of the longest standing pizza companies around, and they continue to thrive. They've expanded to countries all over the world, including Asia and the Middle East. QSR Brands, currently with 211 Pizza Hut outlets in Malaysia and Singapore, will now open 20 new outlets in the nation this year. It's absolutely amazing how international this food has become.

PIZZA HUT EMPLOYEE INVOLVEMENT AND RELATIONSHIP Irej Mahmood Baig Introduction
Employee involvement is probably the most effective approach to improving quality and productivity. Employee involvement is regular participation of employees in, deciding how their work is done, making suggestions for improvement, goal setting, planning, and monitoring of their performance. Encouragement to employee involvement is based on the thinking that people involved in a process know it best, and on the observation that involved employees are more motivated to improve their performance [1]. Employee involvement is a system wherein employees are encouraged to use their expertise and knowledge to suggest methods for improvements in their work areas. These suggestions could important to improvements in the job, the product, the work atmosphere or the company as a whole.

Motivation
Pizza Hut Uses Motivation as a Tool for Productivity, it maintains a well-trained workforce with a good balance of young and energetic people and background. Pizza Huts strategy is to motivated employees in a way to get the companys overall objectives. Target setting and reward is the part of motivation system. The motivation process is continuously going on daily base; everyday they organize the ending ceremony at the end of the day and at this time they give the award to the employee best performance award and best employee of the day by this they motivate their employee to do well work in the pizza hut, along they also conduct the monthly base program and annually also. Internal incentive is given to the employees on the basis of their performance throughout the year, month or weeks. Employees are also motivated by the following ways By giving free food Beverages Bonus Monthly certificates Annually certificates Cash, Profit sharing

Employment Classifications
There are three types are of employee in pizza hut Exempt

Part-time Temporary

Exempt Employees:
These are the employees whose job meets the state requirements for overtime exemption. Exempt employees are compensated on a salary basis and are not eligible for overtime pay.

Part-Time:
Part-time employees are those who are regularly scheduled to do work.

Temporary Employees:
Temporary employees are those who are employed for short-term assignments. Short-term assignments will generally be periods of three months or less.

Equal Opportunity
It is Company policy to provide equal opportunity to all employees. Personnel actions will be taken without regard to race, creed, color, religion, gender. They recruit, hire, train, and promote all persons without any discrimination. Core Values at Pizza hut for Employees are Execute with positive energy Recognize the achievement Listen and more importantly, respond to the voice of the employee. Think safety first.

Employees Targets
Management practices are usually fun and joyous for the employees; with the shifts and jobs rotating and cross training. If an employee gets promoted he/she is likely to distribute candy among co-workers as a token of celebration. Managers give targets to the employees and motivate them to accomplish it with in specified time, according to his/her leadership styles. (The employees however are not given any autonomy to experiment with the product ingredients or recipes i.e. the product, without high level managements approval). The standard shift timings are 8-9 hours but it can fluctuate based on the circumstances (longer or shorter). They have a tea and a lunch break (half an hour for both) during working hours.

Wages and Salaries


Wages and salaries of any employees are increased may depending upon the following Performance of an employee Length of time in the position

Salary range limitations Criteria set for the particular salary review

Training and Educations


At every stage of development, they'll be exposed to a series of on- and off-the-job training modules that will ensure that their employees are ready to handle more and more responsibility. There is a schedule of training and education of employee form the top level management. After every six months there is proper training section from top management to all employees. Mostly all training that given to employees are internally. There is no such training program in pizza hut that they send their employees to other companies for training.

Employee Development Programs


There is a Set Training Programs organized every month. Any employee can volunteer to be a part of this program to hone his/her management and restaurant skills. Management also applies a counter-check on the procedures followed in the training program for fairness and equality of procedures. Tests are organized every month for the management and the crew and everyone has to pass them.

Training Topics
Instructions are provided for learning about a specific job responsibility or procedure. Most common topics that are include in training are Customer satisfactions Employee behavior and attitudes Time management Maintenance of equipment Basic leadership skills Sanitation & Food Safety Safety & Security

Videos
Videos demonstrate food preparation, safety, security and other important procedures are also shown in training section.

Performance Appraisals
Pizza Hut conducts regular and formal performance appraisals on all employees, both hourly and management. At the restaurant level, these evaluations occur once a year for management personnel (unit and assistant managers), and every six months for Shift Managers and, hourly crew members. The Area Manager is responsible for conducting the Unit Managers evaluation which is also reviewed and approved by the general Manager.

Pay-for-Performance

In pizza hut employees are not only rewarded with cash, certificates etc. but their pay is also increased based on their performance annually. Except the base pay, they establish competitive wage and promotion programs, results are recognized and rewarded. Appreciation comes in many forms, from a simple encouragement for a job well done, to restaurant-wide recognition through programs such as the Employee of the Month. In addition, they also establish an internal incentive pay system and provide employees with the opportunity to earn competitive total compensation when performance meets and exceeds goals.

Employees Rank
Q: How do you rank your employees and what keeps them motivated? Employees are ranked according to their qualification, performance, and on seniority basis. General Manager, Manager and assistant Manager are highly qualified. To motivate them internal incentive, free food, bonus, beverages, and certificates are given to them.

Awards
Q: How do you award them? On their performance basis monthly certificate, annually certificates, cash are given to them. There is also employee of the month certificate with cash.

Employees training
Q: How do you train your employees related to their behavior and attitude? Quarterly in a year and after six month there is internal training section for all employees. In which they are educated that how do deal with customers. Any employee can volunteer to be a part of this program to hone his/her management and restaurant skills. Management also applies a counter-check on the procedures followed in the training program for fairness and equality of procedures. Tests are organized for the management and the crew and everyone has to pass them.

Employees Pays
Q: What if all the employees demands to increases their pay? There is a handsome amount of pay given to every employee. So there is no option of such case to rise. We have our procedure of paying system. In which we usually increased the pays of employees every year. Besides all there is bonus, additional cash etc. are given to them on monthly basis.

Job rotation
Q: Are there any job rotation, job enlargement and job enrichment in pizza hut for employee? Employees are given different tasks that are individual or team within a company. They are not sent to other companies.

Security
Q: What type of security you provide to your employees? There is life insurance policy for every employee that work for pizza hut, whether he/she general manager, assistant manager or a crew staff.

Performance
Q: How you do performance appraisal analysis of employee what if employee not happy with performance appraisal then what you do? There is file of every employee in which his/her performance are record and update daily. Every employee is informed by manager about his/her performance at the end of day. If he not happy with performance at the end of day or month his/her previous record is shown to him/her to satisfy him/her.

Employee empowerment
Q: How you empower your employees? That depends on the situation in the absence General manager, manager has the authority of general manger and in the absence of both general manager and manger assistant manager has the final authority. Mostly from 1pm to 10pm manager is available so he has the final authority.

Quality cost
Q: How you reduce or overcome quality cost, prevention costs, appraisal cost, inter and external failure cost? We have very strict check and balance system for quality cost. There is proper documentations of everything i.e. machinery which we are using, employee suggestions, comments cards, E-mails are checked daily in which customer suggestion, complains are checked on these basis we check our quality and try to overcome the quality cost.

CUSTOMER SATISFACTION Umer Farooq


Pizza Hut is working hard to achieve high standard in customer satisfaction by putting a lot of efforts and resources in it. 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. In the Mission Statement of Pizza hut (PEARL)

P.E.A.R.L.S
Core Values at Pizza hut (P.E.A.R.L.S) for Employees Have a PASSION for excellence in everything that is being done. EXECUTE with positive energy and urgency. Be individually and collectively ACCOUNTABLE for growth in people, customer satisfaction and profitability. Find reasons to RECOGNIZE the achievement of others and have fun doing it. LISTEN and more importantly, respond to the voice of the customer. Think SAFETY first.

Lets discuss some factors that tend to increase the satisfaction level of the customers.

Atmosphere that Attracts the Customer


Pizza hut provides their quality products along with quality staff, a very hygienic environment along with a great dining experience. Customers are attracted more towards the atmosphere nowadays as it enhances the pleasure while enjoying the quality products. The building of the Pizza hut has also a very cool view and gives a unique look in between other shops in the area. Customers tend to go to that restaurant which gives a cool look. The interior of the building is very beautifully designed which a three storey is building. The lower storey of the building is reserved for parties and other events. People can book it for a certain time to enjoy pizza parties, birthday parties, family parties and other activities. The other two portions are reserved for families and other customers. The nice view from the interior gives a very relaxing environment.

Customer Complains Handling


Pizza hut sees every customer complaint as an opportunity to maintain confidence in its products and services. There is customer complains center in which any customer has right to complain about the issues he/she is facing. To handle the customer complains pizza hut uses B.L.A.S.T tool i.e. Believe, Listen, Apologize, Satisfy, and Thank. Customers can complain directly to

manger, through website and by mailing them. Mails are checked daily and responded back to customer. There is also comment card system which is strictly checked.

Staff that is Always Ready to Help


One of the most critical things that an organization needs to be aware of is the Communication with Customers, the behavior and attitude of the staff and the motivational level of the staff. These factors can convert a customer into no lost-customers in no time. The customers expect that all the staff treats them very well, help them when they want, guide them as they required and provide the best service than other. As you enter in the building of Pizza-hut, you are greeted warmly by one of the staff and he/she asks the number of people with you. After knowing the answer he/she takes you to the exact place where you can sit around without searching for a seat. A waiter will come to you as soon as you take the seats and present with Pizza hut Menu. He books the order and tells the exact time of the servings. Apart from serving, the staff members including the waiters have a very good way of talking to the customers. They are very humble and always ready to serve the customers. They can even listen to anything that customers complain about in any type of attitude. They try their best to satisfy the customer. Staff members at Pizza Hut strive each day to provide 'CUSTOMER MANIA' - the kind of service that ensures that every visit of the customer is a memorable one.

Listening to Voice of Customer


The mission statement of Pizza-hut contains the statement Listening to the voice of Customer. No organization can increase their quality without listening to customers. Pizza hut does this job incredibly good. As soon as you are finished eating, the crew comes and takes feedback about the food. He asks How was your experience today with our food? The customer can express himself as he likes. This one to one communication is the best approach for getting real feedback. There is a comment card placed on each table. One can fill it up which is directly sent to the manager. The comment card contains some given choices answers to question that explain the quality of the service provided on by the staff. Customers can express themselves and hide their identity if they want to. Pizza hut has a very attractive website showing all the menu and special offers for the customers. There is a section of collection customers feedback as well. Hence it seems right that they indeed listen to the voice of customers.

Strengths
Good Quality Food (Hygiene) Brand Name Food worth its Price Good Service

Weaknesses
Parking Facilities Advertisings are very less Fewer Outlets

Opportunities
More outlets should be open. Sitting Area should be broader. Environment should be more attractive. Attractive offers should be introduced.

BENCHMARKING OF PIZZA HUT (Junaid Hussain)


Pizza hut do not really benchmark other than pizza hut. They do not try to benchmark with their competitors which include Dominos Pizza. Pizza Hut focuses on its performance. There is a strict check and balance for the performance of PIZZA Hut. They always try to improve and in search of the following How to improve? What can be improved? Where are we?

In search of the answer of above questions they take feedback from their customers in the form of questionnaires. They compare their best practices with their own organization such that they take comparison from other outlets of PIZZA hut by giving priority to customer satisfaction and gaining more profit.

Performance Benchmarking
They use to compare and monitor the performance of each outlet with other outlet and try to analyze the performance indicators.

Qualitative Benchmarking
They try to look and monitor the systems which provide fruitful results. They try to find the best practices in their own organization in such a way that they take the best practices of different outlets. These best practices include the staff training and different session which are quarterly or bi yearly runs which can be varied.

Planning

Improvement

Compare

Review

Planning
They plan for each outlet independently. Planning includes budgeting and important decisions which are try to take in the favor of the whole. Manager made the final plan. Assistant manager also contribute in it with the final approval of General Manager. Whenever something not goes into the favor of the organization and if not give the desired result then finally pressure comes on the manager and general manager.

Compare
They compare the plan with other outlets when the desired output is not achieved. For example if they do not meet the actual base line sale for a specific time then they final go to other outlets of their own PIZZA hut and compare with it. But this thing usually happens very rare.

Review
They try to review the plan to achieve they better quality and achieving customer satisfaction to provide the best.

Actually the managers in a town are known to each other personally and meetings are taken place after some time where they discuss the progress of outlet and share their common goals for the success of organization and to provide the better service.

Improvement
After review and comparison, they always look for the improvement of these processes. In nut shell, they do not really benchmark PIZZA hut with other organization but they try to consider the suggestions of customers, look for the tools and techniques of other outlets to achieve the strength and overcome the weaknesses.

A SURVEY ON PIZZA HUT DELIVERY PROCESSES Hammad Akbar

A lack of clarity of delivery area annoyed about 71% of customers, with 24% wondering why Pizza Hut did not deliver to them, even though the restaurant is present in their area.

About 83% of the customers complained about wrong or missing food items. Follow-up calls to Pizza Hut often exacerbated the problems

This area marks the smallest portion of delivery issues. Melted ice-cream, dried or cold pizza and hot wine were the most complained about 50%. While 25% of customers are neutral and 25% giving positive response.

The above figure shows the overall negative response of customers in all areas. 25% of people complaints about their delivery areas, 23% complaints about ordering experience, 44% about delivery speed, 6% about order accuracy and 2% of customers give negative response about food quality.

GROUP PHOTO TAKEN IN PIZZA HUT F-7 BRANCH

QUESTIONAIRS
If there is something wrong with the food and customer complains at the spot what do you do? First of all we apologize for it and give them with alternate and also to relax them we provide an appetizer like salad etc. How do you manage complains regarding late delivery or sales man attitude? We listen for a complaint and excuse the customer and if sales man is on guilty we first time warn him and if he repeats the mistake then we issue a warning letter. How do you know if the customer complaining is right or he/she is playing for fun? It depends upon the condition. Actually we know our staff and his behavior therefore we do manage it. What is the source of your food ingredients like chees chicken etc.? Source of food includes local and some imported as well. If you would like to compare you company with some other which companies it would be? Obviously our competitors but mostly we do not hesitate from it since it is leading. How do you evaluate or what do you do with comment cards. How do you handle bad comments? These comment cards are not just a formality it tells us our relationship of customers. Bad comments need to be proper reasoning we consider it. In case of home delivery, how you handle complain that the pizza is rotten? In case if the pizza is rotten the company will replace the pizza. Have you ever benchmarked your company with other company? Did you improve on the basis of that data? We do not need to benchmark it but we try to compare the performance internally. Like from outlet to outlet. What are the methods by which you are trying to improve pizza hut It includes trainings and meeting at senior level. Pizza hut is a big name, how much they pay each employee a month. Are there any bonuses a mouth? Pay is not fixed. It depends upon the experience and performance. At the end of month performance is evaluated. We give certificates and awards at the end of month.

Customer is never happy. What different techniques your company does to keep the customer satisfied? We satisfied customers on spot by going on the table and ask them if they are in need of something. Where do you see pizza hut in the competition among different pizza provides in the next 10 years? For such a thing at a top level, performance of our outlets is monitored. How much you focus on maintenance and repair of all equipment present in pizza hut. And are there any alternatives if equipment fails? There is a proper trained maintenance staff which goes to different outlets and sees its performance. Since all these things are monitored by our own staff as well. How do you measure the performance of pizza hut? Performance is related to the business. The more the sales are going up better is the performance. Do you compare your branch with other branches of pizza hut? Yes our performance is evaluated from one outlet to another. We compare different outlets. Are there any communications between different branches of pizza hut? Communication is always there and managers use to communicate regarding performance evaluation. Why there are very few advertisements of Pizza hut on Pakistan TV? Actually here in Pakistan we do not need to be advertised but off and on we give our offers in newspapers to keep the customers update. If you face any specific problem how you solve it? Manager and Assistant manager discuss it and go for its solution. How do you mange if there is houseful? If there is no sitting place? We have a staff which gives the guidance to coming customers. We provide a sitting place outside the outlet; tell them a time in which they will be given a table and take their order. Is Awareness is given to all visitors/guests to take suitable measures in emergency conditions? We have mentioned guidance on a chart so that what they have to do in case of emergency.

REFERENCES:
[1]. http://www.businessdictionary.com/ [2]. Pizza hut employee handbook [3]. Pizza hut Jinnah super f-7 Islamabad [4]. www.google.com [5]. www.wikipedia.com [6]. http://www.cpsc.gov/businfo/notcpsc.html [7]. http://www.cpsc.gov/businfo/fhsa.html [8]. http://www.cpsc.gov/businfo/pppa.html

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