Pizza Hut Case Study

Executive Summary Pizza Hut started out as a pizza parlor opened up by two brothers in Topeka, Kansas. Today, the company has restaurants all over the world and its annual sales are in the billions. The growth of the company was due to a good product being delivered at a good price and offering perceived value. The company has adjusted to new entrants into the market and has managed to stay ahead of the competition. The philosophy for growth is simple: Take care of the customer, and the customer will take care of you. Pizza hut focused on providing good customer service in order to create customer loyalty. In return, the customer will return and more importantly, the customer will become an advocate. Customer feedback programs were put into place in order to measure the customer experience and also to uncover opportunities. The restaurant managers are paid bonuses based on the result from their respective customers. The problem was that the company noticed that managers of underperforming locations where receiving bonuses while managers of extremely profitable locations were not. Recommendations have been made in order to fine tune the bonus plan so that manager incentives will be balance between profits and customer service. Pizza Hut is a pioneer and continues innovation with its service initiatives and product lineup. As long as the company keeps focusing on its customers, then the company will still be a leader for generations to come.

Table of Contents

I. History & Background………………………………………….………..….4
II. Customer Loyalty Program………………………………….……………...5
III. Macroenvironment Variables………………………………………..……..6
IV. Microenvironment Variables…………………………………….…………7
V. TOWS Analysis…………………………………………………………..…..8
Threats………………………………………………………………………..8
Opportunities……………………………………………..………………….8
Weaknesses……………………………………………………...……………8
Strengths…………………………………………………...…………..……..9
VI. Recommendations & Rationale……………………..………………………9
VII.

References: 1. Pizza Hut Website: http://www.pizzahut.com 2. Author not available (2007). Pizza Hut. Retrieved March 15, 2007, from Wikipedia Web site: http://en.wikipedia.org/wiki/Pizza_Hut 3. Gumpert, David, The Pizza Hut Story, Wichita, Kansas: Pizza Hut, 1989 4. Author not available (2006). Pizza Hut. Retrieved March 13, 2007, from Answers.com Web site: http://www.answers.com/topic/pizza-hut-inc 5. Johnson & Weinstein, W.C. , A. (2004). Superior Customer Value in the New Economy, Concepts and Cases. Boca Raton, FL: CRC Press.