Pizza Hut Pakistan

Pizza Hut initiated its operations in Pakistan with its first restaurant in 1993. The journey that
started then continues to this day, as the chain consists of over 40 outlets spread all across
Pakistan, and it’s the largest restaurant chain in Pakistan. Karachi – the business hub of the
nation – also serves as the most populous consumer focal point for Pizza Hut in Pakistan. The
Clifton outlet of Pizza Hut has won numerous regional rewards for exceptionally high sales
volumes. The team at Pizza Hut has launched various amazing flavors and toppings during there
time in Pakistan. The critically acclaimed topping, Chicken Tikka, which has swept the world
since its creation, was introduced for the first time in Pakistan.
VISION STATEMENT
“To own majority shares of both the casual dine in and delivery sectors in Pakistan and to
become the industry leaders through customer mania.”
MISSION STATEMENT
“To be the first choice among restaurants and delivering brands by developing our people
capability to deliver maniacal service, product quality, 100% customer satisfaction, innovation
and building great look and feel restaurants to provide attractive returns to our stake holders.”

QUALITY MANAGEMENT
To ensure rigid international bench-marks in the quality of products and services at all its
restaurants across the world, Pizza Hut has a secrecy 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’ back of-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 department at the main office in Gurgaon. This department has
the task to implement quality standards and know whether they are achieved or not.
JIT STRATEGY OF PIZZA HUT
Pizza hut works on JIT they order direct supplies according to demand. For just in time strategy
they prepare themselves few hours before

 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 Lemonade.
 They be ready with different patties ( pizza base)
 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.
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.
Products of PIZZA HUT
Starters Beverages
Soups Deserts
Salads Sandwiches
Pizzas
Pastas
Supply chain
The movement of material from source to end customer is called supply chain. Supply
Chain includes purchasing, manufacturing, warehousing, transportation, customer service;
demand planning, supply planning and Supply Chain management. It is made up of the people,
activities, information and resources involved in moving a product from it’s supplier to
customer.
Supply chain network for Pizza Hut
Supply chain of pizza hut starts from the suppliers of pizza hut. There are many suppliers of the
pizza hut but we divide them in two parts.

 Direct suppliers
 Indirect suppliers

Direct suppliers
There are three direct suppliers of Pizza hut named as:
• Pepsi Company
• Bake parlor company (Buns)
• Habib oil Mills (First mineral water)
Indirect suppliers
Pizza hut have many indirect suppliers because they need all other material like Cutlery, meat,
vegetables, sauces, and all other material come from their warehouse named as “Commissary”.
That material is purchased by Commissary means indirect suppliers of Pizza hut are:
• Meat market (Their owns cattle)
• Vegetable market
• Sauces companies
Explanation:
Pizza Hut demands the direct material on daily basis. On every day end pizza hut manager
forecasts the demand of next day and gives the order to the suppliers than next day morning the
goods come to the Pizza hut. All indirect material i.e. vegetables, sauces, meat, cutlery and all
material is purchased by the ware house named by “Commissary”. The material comes from
warehouse by the trucks on every Wednesday.
Then Pizza hut takes the orders from its customers who come to pizza hut and also take the
orders from the delivery service there is a specialized system in pizza hut which is connected to
the delivery orders service so that 1 order list at a time come in the kitchen and at the manager’s
table also. Than production of pizza according to order starts and they deliver it with in 45
minutes at the door of customer and in pizza hut they just take 20 minutes to prepare the pizza
and serve it to the customer.
Ware house of Pizza Hut:
Its ware house is situated in Bahadurabad. The name of ware house is commissary. In this ware
house they have indirect material. Pizza hut has also ware house of customer’s records. Pizza
Hut claims to have the largest fast food customer data warehouse in the world with 40 million
US households or between 40 and 50 per cent of the US market

Pizza Hut Outlets

City Outlets Address
KARACHI Clifton 1 QM Building, Plot# BC 15, Block, Khayaban-e-
Roomi, Clifton
Clifton 2 Plot No. GPC-6, KDA Scheme 5, Kharkhar
Chowrangi, Clifton
Zamzama 19-C, Zamzama Commercial Lane-9, Phase V, D.H.A
Gulshan-e-Iqbal 36-B, Hina Centre, Gulshan-e-Iqbal
I.I Chundrigar Mitha Chamber, I.I Chundrigar Road
Road
North Nazimabad D-5, Block-D, North Nazimabad
Sea View Sea View
Cantt. Station Cantt. Station
Shahbaz 14-C, Lane 2, Kh-e-Shahbaz, Phase 6, D.H.A.
Atrium Mall 249, Staff Lines, Zaib un Nisa Street, Saddar
Shaheed-e-Millat Shop S-104 & Mazzanine Floor, Plot 7/4, block 3,
Road DMC Housing Society, Shaheed-e-Millat Road
Rashid Minhas Plot No. 8, Block 10-A, KDA Scheme No.24, Main
Road Rashid Minhas Road
Sharae’ Faisal Shop No. 6, Al-Kamran Centre, Plot # 7-A,Block 6,
P.E.C.H.S.
M. Ali Society Plot No. 12-C, Reliance Arcade, Muhammad Ali
Soicety
Gulshan Block 7 1-B/FL-6, Block 7, Gulshan-e-Iqbal
Nazimabad 2 Opposite Matric Board Office
Korangi Plot ST-6/4, Sector 24, Chamra Chowrangi, Korangi
(Industrial Area) Industrial Area
LAHORE Gulberg 89/B-1, Gulberg-III, M.M. Alam Road,Aligarh
Chowrangi
Mall Road 73- Mall Plaza, The Mall
M-3 Fortress Stadium
Defence 122-Y, Lahore Cantonment Soceity, Defence
Railway Station Railway Station
Johar Town Plot #15, Block N, Johar Town
Iqbal Town Block 6, Near Akbari Store, Allama Iqbal Town
Barkat Market Barkat Market 8, Power Block, Garden Town
Gulberg Delco 4-E-1, Hali Road, Gulberg 3
PSO Sunshine PSO Petrolium (Sunshine), Abid Majeed Rd. (Girja

HYDERABAD Hyderabad
ISLAMABAD Jinnah Super F-7
F-10
PESHAWAR Peshawar
Chowk), Cantt.
Plot # 45, Hotel Indus, Thandi Sarak
13-1, Sector F-7, Markaz, Jinnah Super Market
1-K, Plaza, F-10 Markaz
Captain Karnal Sher Khan, Stadium, ShamiRoad,
Peshawar Cantt.

Demand estimation of Pizza Hut

Pizza Hut estimates demand on daily bases. Demand estimation is based on past experiences
where chances of buffer are also considered and 10% buffer ratio is taken. Demand estimation is
done through the mutual participation of the managers of the particular outlet. While estimating
customer’s demand, both, the home delivery orders of customers and those customers who used
to dine inn, take into account.
Operations/production management of Pizza Hut
Operation process started. From 8am to 11am pizza hut gets open for the production function
only. From 11am till 3 at night, customers are welcomed to come in and enjoy their meal.
Operation/production includes the preparation of pizza dough according to the estimated
demand. The preparation of dough is go through by three different processes.

 First process includes the addition of different spices and yeast in flour. All the
ingredients are measured and followed SOP’s to help maintain the same taste at all
outlets in all cities. Skilled and trained labor is used to make the whole process speedy
and efficient as well as to reduce the lead time of each process.
 After the addition of spices, in second process, the different sizes of dough is prepared to
response the requirements of customers.
 In third process, dough gets baked.

All of the three processes include machines and labor both. Each dough is not prepared by a
single person but each person is assigned to complete a single task in order to improve
efficiency. Till 11am, all the dough get prepared and rest of the pizza preparation process i-e,
filling, topping and baking, is done after receiving orders from customers.
After the order placement of customers, preparation of pizza get started, the preparation time of
pizza or the serving time of customer’s order is max 16 minutes. Whether there are too many
customer’s orders and takeaways, but the pizza hut’s serving time never exceeds up to 16
minutes. Their ready dough helps them to make the entire customers satisfy in time. Incase of
unexpected large number of customers or too many take away and delivery orders, the work is
done in a way that one person spreads sauce, other add veggies, other one fills meat and the other
person spreads cheese on it and then finally pizza goes in oven. This chain helps to serve
customers as quickly as possible. But in normal routine only one person is responsible to prepare
a single order (filling, topping etc).
The detailed steps in pizza production are given below:

 Identify toppings
 Saucing procedures
 Using quality rings
 Layout method overview
  Placement of Pizza in the oven
 In-store production, time concept
 Need to give priority to home delivery tickets
 Hands-on practice of making pizzas
 Making half-n-half pizzas, single topping pizzas, special instructions, substitutions,
making
 Using the Peak Revenue Period Checklist
 Explain the service times of all items served by the station
 Closing of the make table
 Storage of left over toppings
 Cleaning procedures
 Thawing charts usage and placing meats for thawing
 Tracking wastages on the make table

In pizza hut, here is no inventory left at end. All the pizzas are prepared as per customer’s
demand. But sometimes, incase of any food festival or food stalls at exhibitions, there may some
error occur to estimate the demand of unexpected arrivals of customer. If expected demand is
high as compare to actual demand then finished goods inventory may left. At the end the cost has
to be paid by company. To cut this cost pizza hut has a straight policy that this ending inventory
(remaining pizzas) neither distributed among employees/workers nor stored in refrigerators to
resell the next day but directly through into dustbin. The aim is to demotivate workers for
producing extra units, keep them not to think that remaining pizzas would be serve to them or
they may takeaway to their homes. The other reasons are to estimate demand more carefully and
not to compromise on quality.
Strategy of Pizza Hut
Pizza hut is using performance measurement to achieve leadership position & twice as likely to
handle a major change successfully.
Supply chain strategy must consider the potential trade-offs existing between Cost, Quality,
Quantity, Service
But Pizza hut compete on cost and services basis. Their Performance measurement system is link
with its all suppliers or traders to achieve breakthrough performance in satisfying the end users.
FISH BONE
Fish bone is a cause and effect diagram to identify potential cause of problems. Pizza hut always
try to have customer satisfaction on priority and if there customer are not satisfied, what are the
main cause of unsatisfaction. These causes can be behind a unsatisfied customers.

Distribution channels
The type of distribution channel used by Pizza Hut is the direct channel. The direct channel is
successful when there is an extremely large market that is geographically dispersed. The direct
channel is also useful when there are a large number of buyers, but a small amount purchased by
each.
Pizza Hut uses three different methods of selling its products directly to the market.
-The first method of distribution used by Pizza Hut is delivery. Customers can call Pizza Hut
ahead of time, place an order, and the order is delivered to the customer’s home.
-Another method of distribution is for customers to dine-in. Customers can go to the nearest
Pizza Hut, place an order and either leave with the order or eat at the restaurant
-The third method of distribution is online ordering. Customers can now go on the Internet and
place an order.

Recommendations:
The supply chain strategy of Pizza Hut is very good but there area of supply is so small. They are
providing there products only in big cities of Pakistan. There is so much demand in small cities
like Sargodha, Gujarat, Sialkot, and Gujranwala. There other competitors are moving in theses
cities so if they will not make there outlets there they will lose competitive advantages.
The other thing is there prices are high if they will lose there prices poor people will also like to
buy there pizzas and the house hold trend of food will change after some time, people will like to
buy food rather then making it at home.
After implementing theses strategies they can get:

 Maximum return on their investment

 Value proposition
 Expands their business growth
 Increase in sales

References:

 Pizza hut Sites

http://www.pizzahut.net.pk/

 Pizza hut face book page

http://www.facebook.com/PizzaHutPak

 Islamabad outlet Jinnah Super