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What is the difference of Business
Models between Pizza-hut China and
Papa Johns’ China from investigation and your observation?
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Papa Johns focuses mainly on dine-in restaurants as Pizza Hut focuses more on delivery service, but they also have more and more dine-in places.
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Pizza Hut also offers a wider Menu for the costumers, e.g. Several rice dishes and more
Opportunities for Pizza sorts and extras.
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What is advantage and disadvantage of
Pizza-Hut’s and Papa John’s model?
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Advantage of Pizza Hut is that they dont have the same costs for a delivery-store than Papa
Johns has with an dine-in. Papa Johns needs to pay a higher rent (they need more space for costumers and a better store position than a delivery-only-store) and pay more employees
(for service, cleaning).
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Also Pizza Hut adjusted their Menu for the chinese market, means they hit a larger group of people with (unusual) products like rice dishes and so on.
Pizza Hut vs. Papa John‘s
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In your opinion, what is the main problems of Papa Johns in China? Why Paps Johns can not achieve Pizza Hut’s success in China these years?
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Pizza Hut entered China in 1990 and first delivered in 2001. Means they are in the business for nearly 25 years now. When Papa Johns entered China in 2003, Pizza Hut had already the advantage of 13 years in the market, which means they have more knowledge about Chinese market, also they have better reputation and of course more people in China know Pizza Hut.
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Papa Johns had touble with fitting into the Chinese market, they did not adjust their Menu and their
Ingredients or recipes, which Pizza Hut did. For example Pizza Hut uses less sauce and less cheese for their
Pizza in China, compared to the U.S. product. The Pizza fits the Chinese costumer better and they have more success. Papa Johns stuck with its U.S. recipe which means more cheese and sauce.
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Also Papa Johns has more dine-in-stores where unefficent work is worse and way