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Authored by; SUMMAYA SHARIF and team (02-111141-222.student@bahria.edu.pk)

SUPPLY December 15
2016

CHAIN
REPORT ON

PIZZA HUT
This report will answer some of the most FAQs of the organizations
nowadays about supply chain management which include the
questions about the SC model, Achieving Strategic fit, Forecasting in
SUPPLY CHAIN
SCM, S & OP planning, Distribution network 7 Configuration plus the MANAGEMENT BY
recommendations for helping the organizations in outdoing their
competitors efficiently and
MUJTABA
efficaciously. Pizza hut, Pakistan is the organization that’s been HUSSAIN
chosen for delving, pragmatically, in to the depth of our study.

©BAHRIA UNIVERSITY, KARACHI CAMPUS

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ACKNOWLEDGEMENT

We are the students of MBA 2.5 (MKT/HRM), KARACHI UNIVERSITY

BUSINESS SCHOOL and we are thankful to the Almighty Allah who, in His
infinite mercy, has guided us to complete this term report. We also wish
to thank our Parents for their personal support and attention-that
inspired us to go our own way. We are blessed & honored to have such
parents and grateful for them that they gave us a chance to prove
ourselves.

Second of all, We would like to present our deep and heartily gratitude
to our Supply Chain Management’s Professor; SYED HUZAIFA KHALID;
who not just asked for such an informational project; which made us
highly conversant with new, enlightening and pragmatic information; but
also gifted us with preciously valuable guidance and support for the
accomplishment of this report.

Lastly, we would also, gladly, like to present our beatific thanks to

Karachi University Business School, that it provided us a platform via
which we could get such an intriguing experience that’s a sine qua non
for becoming sagacious.

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Table of Contents
INTRODUCTION ..................................................................................................................................................... 5
VISION ....................................................................................................................................................................... 6
Mission statement ................................................................................................................................................. 6
SUPPLY CHAIN OF PIZZA HUT.......................................................................................................................... 7
Direct suppliers: ................................................................................................................................................. 7
Indirect suppliers: .............................................................................................................................................. 7
Meat market (Their owns cattle)
7

Vegetable market 

7

Sauces companies 

7

PIZZA HUT’S WAREHOUSE AT KARACHI, PAKISTAN: .............................................................................. 8

Supply chain performance: ................................................................................................................................ 8
AN OVERVIEW OF SUPPLY CHAIN; ................................................................................................................. 9
OBJECTIVE OF SUPPLY CHAIN: ....................................................................................................................... 10
Process view of supply chain: .......................................................................................................................... 10
SUPPLY CHAIN MODEL OF PIZZA HUT, Karachi ...................................................................................... 10
ACHIEVING STRATEGIC FIT .............................................................................................................................. 11
HOW IS STRATEGIC FIT ACHIEVED? ......................................................................................................... 12
1. Step 1: Understanding The customer & Supply Chain Uncertainty................................. 12
2. Step 2: Understanding the Supply Chain Capabilities: ......................................................... 13
3. Step 3: Achieving Strategic Fit ....................................................................................................... 14
CHALLENGES TO ACHIEVING & MAINTAINING STRATEGIC FIT ....................................................... 14
1... Increasing Product Variety & Shrinking Life Cycles; ........................................... 14
2... Globalization & Increasing Uncertainty ............................................................... 15
3... Fragmentation of Supply Chain Ownership: ........................................................ 15
4... Changing technology & business environment................................................... 15

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5... The environment & Sustainability ........................................................................ 16

Challenges faced by Pizza Hut ........................................................................................................................ 16
FORECASTING ....................................................................................................................................................... 16
Initial preparations: ......................................................................................................................................... 17
Strategy of Pizza Hut:..................................................................................................................................... 17
SALES AND OPERATIONS PLANNING ......................................................................................................... 17
Innovation and Strategy review –.............................................................................................................. 18
Demand Planning – ........................................................................................................................................ 18
Supply Planning ............................................................................................................................................... 18
Financial Integration – ................................................................................................................................... 18
DISTRIBUTION CHANNELS............................................................................................................................... 18
CONCLUSION ........................................................................................................................................................ 19
RECOMMENDATION .......................................................................................................................................... 20

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INTRODUCTION
Pizza is an Italian cuisine. The legacy of Pizza Hut began in 1958, when two college students
from Wichita, Kansas, Dan and Frank 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 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 company in the world.
While they were improving their hotel and writing the name on board, the board had little
space after writing Pizza, since the roof was like a hut, they wrote Hut there. After one year
they opened 10 more branches in different cities of America.
Over the past four decades Pizza Hut has built a reputation for excellence that has earned them
the respect of consumers and industry experts alike. Their projects have been voted Number
One in countless consumer surveys nationwide. And their accomplishments as innovative
business leader have been cited by such respected publications as Restaurant Business, Fortune
and The Wall Street Journal.
Pizza Hut, Inc, a division of Tricon Global Restaurants, Inc, has more than 7,522 units in the U.S.
and 11,000 units in more than 86 other countries.
Tricon is the parent company to two other segment leaders, Taco Bell and KFC. When combined
with Pizza Hut, these organizations make up the world’s largest restaurant group, with almost
twice as many units as McDonald’s.
Pizaa Hut franchises, exemplify the entrepreneurial spirit which launched the system back in
1958. Through their interest and initiatives the Pizza Hut system was able to develop new
territories both in the United States and overseas.
The first Pizza Hut Restaurant in Pakistan was opened in December 1993 and took the culinary
scene by surprise. From that time onwards, 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. Furthermore, Pizza Hut during the core
of its existence has gradually aided in the development of various local suppliers who as a
requirement have to supply food staff equivalent in quality to the international food standards.
In this regard, Pizza hut has proved to be a major contributor towards the progress of the
Pakistani food industry as a whole by bringing it to a point where they can now look forward to
supplying their items to other chains as well as the international market.
Pizza Hut, being the first International franchise to enter the Pakistani market has set new
standards of dine-in restaurants and quick delivery of oven hot pizzas and has since then
enjoyed tremendous brand loyalty from its customers.
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VISION
“To make the people know that for all the eating items they desire to eat can be made available
in minimum time without our effort excluding money”

Mission statement
“To be the best pizza for every pizza occasion”
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SUPPLY CHAIN OF 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, Buns, First mineral water

Indirect suppliers:

Pizza hut owns many indirect suppliers for the materials they want like Cutlery, meat, vegetables,
sauces etc.

Meat market (Their owns cattle)


Vegetable market

Sauces companies

Description:
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. The
material comes from warehouse by the trucks.
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 within 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.

PIZZA HUT’S WAREHOUSE AT KARACHI, PAKISTAN:

Its warehouse is situated in Bahadurabad, Karachi, Pakistan. The appellation of which is
commissary. In this warehouse they have indirect material. Pizza hut has also warehouse of
customer’s records.
Supply chain performance:
Pizza hut has worked a ton to build the responsiveness towards customer’s request. Couple of years
back they had a few protestations from the clients, who requested for home delivery service .Actually
the pizza hut guarantees that any place you live, your area does not make a difference, we convey
your request within 45 minutes to you. For this reason they have composed their own software
system at which they spare the information (name, contact number and address) of clients who call at
their call focus to request pizza and appreciate the home delivery benefit. Pizza Hut now tracks not
only telephone orders, however online requests and can track progressively what ads individuals are
watching. After accepting the request from client, pizza hut let go the bicycle rider. The delivery boy
has to deliver pizza at the allocated time because this increases their responsiveness.

AN OVERVIEW OF SUPPLY CHAIN;

Supply chain contains all the organizations/firms involved directly or indirectly in accomplishment of the
customer’s request. Ergo it includes not just the suppliers and manufacturers but also the retailers, distributors,
transporters, warehouses, and the customers.

Customers are the vital part of supply chain and the fundamental purpose of supply chain is to satiate their
needs in a way that beatifically delights them and generates profit for the firm too.

Supply chains are actually a network; a network of manufacturer, supplier, distributors, retailers etc.
and ergo supply network or supply web is the best sobriquet for a supply chain which felicitously
delineates the structure of most supply chains. Following are the fundamental stages of a supply web;

Customers

Retailers

Wholesalers/Distributors

Manufacturers

Component/raw material supplier

Each of the above stages is linked through the two-way flow of product, information, and funds that
may be managed by a single stage or an intermediary.

Supply chain management denotes the amalgam of 3 main streams of knowledge and practical
experience, these are;

Sourcing, Procurement, and Supply management; functions arising in the area of

obtaining/purchasing.

Material management: The functions that materials management erstwhile included are, inventory
management, stores management, warehousing, stock keeping, and scheduling but it now includes
production planning and production control as well to advance in to the extended materials
managements. With later inclusion of order processing it came to be known as integrated materials
management

Logistics and distributions: It the stream of supply chain management that plans, implements, and
controls the efficacious and efficient, forward and reverse, flow and storage of goods and services,
and related information between the point of origin and the point of consumption in order to meet the
customer’s requirements.

OBJECTIVE OF SUPPLY CHAIN:

The main objective of supply chain is to maximize the supply chain surplus to the optimum level.
The supply chain surplus can be found via subtracting Supply Chain Cost from Customer value;
hence elucidating it clearly that the main aim of supply chain is to cut off the cost while
enhancing/increasing the value to the customer.

Process view of supply chain:

Supply chain includes the following two fundamental processes:

Cycle view: All of the processes in a supply chain are divided in to a sequence of cycles, and each
process is performed at the crossing point between the two successive stages of a supply chain.

Push/pull view: Push view illustrates that the supply chain processes of stock keeping, warehousing, etc. are
done in anticipation of the customers or on the forecasted data, while the pull view is on the contrary of the
push process; it illustrates that all of the supply chain’s processes are done in reaction to the customer demand.

SUPPLY CHAIN MODEL OF PIZZA HUT, Karachi

Since Pizza hut follows the Push/Pull process of supply chain and hence the supply chain model of
Pizza Hut would be:
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Supplier Manufacturer Distributor Customer

Supplier: The suppliers of Pizza Hut include the ones who supply the materials to store in
commissary (their own warehouse), they are:

Meat sellers from meat markets

Vegetable sellers from vegetable markets

Sauce companies

Manufacturer: Pizza Hut is one and only manufacturer of its own products that are unique in their
own way.

Distributor: Pizza Hut has taken care of the distribution services as well, that includes the Pizza
Hut’s logistic service of delivering the take away orders within 30-45 minutes.

Customer: The customers of Pizza Hut include everyone, from children to aged people to geriatrics.

ACHIEVING STRATEGIC FIT

Achieving strategic fit basically means that all of the competitive strategies-the ones that define the
congeries of consumers’ and customers’ needs to satisfy them in the way that their competitors are
not doing or simply the result of implied uncertainty-and the supply chain strategies are all queued on
the main goal of the company.

To further the supply chain strategy; it defines the nature of obtaining the raw materials, transporting them to &
from company, manufacturing the products or operations to deliver the services, and the distribution of the
finished goods (products/services) to the customers and the consumers, To be more succinct it can be said as
the decision of going responsive or efficient.

In order to avoid rambling in the market it is crucial for the firms to align their strategies with the
main goal(s) and objective(s) of the firm; ergo, the achievement of strategic fit holds immense
importance for a firm to stand deep rooted in the market.

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For achieving strategic fit a firm must ensure that;

The functional and competitive strategy are fitting together to establish a synchronized strategy.

All and every function in the firm is felicitously putting together the resources and the processes in
order to implement the strategies efficaciously.

The overall supply chain’s design and the role of each stage thereof is synchronized together to
support the supply chain strategy.

HOW IS STRATEGIC FIT ACHIEVED?

In order to achieve a better strategic fit, firms must ensure that the supply chain’s capabilities are
queued together in supporting its abilities to satiate the consumers.

The three fundamental steps to achieving strategic fit are;

1. Step 1: Understanding The customer & Supply Chain Uncertainty

Since consumers’ needs, wants and demands are pretty uncertain ergo an ambiguity in the supply
chain becomes apparent. A firm must acknowledge and understand to the whole the uncertainty of
demand plus the uncertainty that rises in the supply chain due to that in order to satiate the consumer
needs efficiently in an efficacious way.

Talking on a pragmatic level, Pizza hut is also in the race of understanding its consumers and their fluctuating
demands so well that it’s able to understand the resulting fluctuations in the supply chain in order to serve their
consumers with a way that leaves them feeling delighted. Pizza hut incessantly keeps peeking through the
curtains of minds of consumers during Ramazan, Eid, and other occasional/non occasional holidays/events; to
become their customers’ first choice; by coming up with new, tempting and alluring offers and tightens its
supply chain processes when the demand raises; e.g, the material procurement is increased, serving time is
reduced in order to swiftly serve the consumers waiting in the queue etc., and even keeps offering varieties in
their products, service level-and even keep asking for feedback to enhance that, and keeps innovating the
products in accord with the consumer desires to lure the consumers and outdo their competitors for standing
deep rooted in the market.

That is how Pizza hut maintains the quantity of materials needed to procure in accord with the
consumer demands, response time in accordance with the consumer’s tolerance level, the variety of
products needed, the service level required, the price of the products, and finally the desired rate of
innovation in the products.

When the implied demand uncertainty is considered; that is the augmentation in the level of uncertainty of
demands due to the value addition-that a firm once offered-being offered by the competitors as well; then Pizza
hut is keen on incessantly offering offers like no one does to lure

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its consumers and to keep on working on its supply chain strategies such as maintaining the product
level via felicitous procurement strategy, ensuring the transportation of the materials to every branch
of it so that no any branch lacks in serving the consumers, maintaining its logistics so that every take
away orders are served on time-no matter what nearest branch the consumer has ordered to etc., and
training its employees to serve their consumers in a way that is appealing and luring.

2. Step 2: Understanding the Supply Chain Capabilities:

Since achieving strategic fit is for serving the consumers in a way that leaves them beatifically
satiated, no matter the uncertainty in the demand that a firm faces ergo, the firms must go for
fulfilling the demands it has targeted, in the best possible way, even in an uncertain environment.

The characteristics of supply chain that affect a firm’s responsiveness and efficiency are henc e
crucial to understand, these include the following;

Response to wide ranges of quantities demanded

Meet short lead times

Handle a large variety of products

Build highly innovative products

Meet a high service level

Handle supply uncertainty

All of the above characteristics result in an augmented demand uncertainty but all of these is directly
linked to the responsiveness of the firms. Since the responsiveness increases the cost ergo it reduces
the supply chain efficiency. That is why a firm has to compromise on one thing if it wishes to achieve
the other. Albeit both satiate the consumers, some conditions are apparently applied like there comes
a time when a firm has to prioritize being responsive over being efficient and bear costs-sometimes
high while sometimes the situation is upside down thereof.

Pizza hut has done and is in an incessant process of doing better each day for outdoing its competitors
and serve its consumers with the best possible way. It has ensured that:

The response to wide ranges of quantities demanded (particularly on some occasions) is to or before
the time promised (on occasions or for take away),

The orders meet short lead times, so the consumers don’t end up feeling frustrated-whether they’re
dining or have ordered for their take away service.

The capacity is on an optimum level to bear/handle a large variety of products-to serve the consumers
as swiftly as they can when needed.

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Innovations in the products are offered to the consumers as augmented products more often.

Every branch meets a high service level, is open to feedback and flexible enough to change to lure
the consumers.

It handles the supply chain uncertainty-be it implied or basic-immaculately, and tries hard to be
impeccable in achieving what they targeted.

Albeit, Pizza hut sweats blood in making sure that it stands on an optimum level of being responsive, it does
not mean that it always compromises on the ‘cost’ part. Pizza hut owns a warehouse naming “Commissary”
and has good ties with the suppliers of it to ensure that the cost is low enough to bear the future expenses.
Moreover it also goes for higher margins in their pricing strategies to balance out the expenses and maintain
the profitability. This shows that Pizza Hut understands its supply chains capabilities and knows how to take
the best use of it.

3. Step 3: Achieving Strategic Fit

At this lag end of achieving strategic fit, firms ensure that the degree of supply chain responsiveness
is incessant with the implied uncertainty and hence the final goal is targeting, promising and
delivering high responsiveness for high implied uncertainty but high efficiency for low implied
uncertainty.

Pizza hut being the one facing beaucoup challenges thrown by its numerous competitors like 16th
street pizza, pizza today, pizza max, Domino-being the main competitor, California pizza etc., faces a
lot of implied demand uncertainty; where consumers immediately swerve the direction if something
more innovative, of good quality, and worth going for arrives in the market of delicious pizzas and
ergo it has to keep on trying hard to lure the consumers with being as much responsive as they can.

The reason & characteristics explained above are enough to position Pizza Hut on highly responsive
level on the responsiveness spectrum and hence it stands on the II level of the supply chain
responsiveness; with the manufacturer absorbing most of the implied demand uncertainty and the
supplier absorbing least thereof. Hence I can conclude that Pizza hut is achieving the zone of
strategic fit because it’s working in accord with the implied uncertainty level in the environment.

CHALLENGES TO ACHIEVING & MAINTAINING STRATEGIC FIT

Increasing Product Variety & Shrinking Life Cycles;

Some companies keep on acquainting the world with the new, technological, innovative, and/or
attractive/stylish products while losing on the process of elimination of the older/obsolete ones-this shrinks the
life cycles of products and hence cuts down the opening of opportunity to

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achieve the zone of strategic fit; as high level of responsiveness is demanded for achieving fit and but
the firm’s busy in introducing new varieties and is left with equal to no cost for spending on the
old/obsolete products.

The best policy to handle this challenge efficaciously, is to design product platforms with common or
similar components and keep up the tailored supply chain that provides the solution of desired level
of responsiveness in accord with the demand uncertainty for handling the new product and other low-
volume products while a cost-minimized solution for the successful high-volume products. This helps
in achieving the optimum efficiency level while providing the felicitous level of responsiveness to
each segment/product.

Globalization & Increasing Uncertainty

Since the era has gone extremely uncertain and fluctuating in terms of all the factors influencing supply chain
performance ergo, the demand has peaked out the level of uncertainty as well.

Ergo, avoidance here won’t help out any firm but will surely jeopardize it. The best way is to design
a supply chain model by taking these uncertainties in deep consideration in order to handle these or
learn to handle these.

Fragmentation of Supply Chain Ownership:

With the rapid changes in the technical and modern era, many firms have now learned to opt for a
new ownership supply chain design which enables them to take the advantage of the capabilities of
the suppliers and customers which they lack on, but since everything has a con attached to it ergo, it
also has a bad side that is making the alignment and management of supply chain more complex.

Since the chain is broken in to many owners with differences of interests, opinions and policies ergo
it is very hard to communicate or coordinate. This can give rise to consequential and substantial
problems including what many authors have indirectly claimed as democratic issue; that is each stage
focusing on their own objectives rather than the whole chain’s; which results in the disastrous
reduction of total supply chain profitability.

The only solution to this problem is to keep all the member of a supply-chain aligned, in order to gain
the strategic fit.

Changing technology & business environment

It elucidates the technological changes and the uncertainty of consumer needs which changes the
environment as well and hence a strategy that may have been a best fit in one environment end up
becoming the worst one. Ergo, firms need to incessantly keep working on their supply chain strategy
and come up with something new, innovative, and luring to lure all the customers and satiate their
needs in the best possible way.

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The environment & Sustainability

This elucidates the issue of environment & sustainability and that the firms have both opportunity to
hit and a threat to handle/lessen in the form of these issues. Opportunity in sense that they can add an
extra value to the customers and reduce their costs along this dimension by a felicitous packaging
while threat defines the increased level of coordination demanded, by a tad greatest opportunities,
across different members of supply chain. In order to lessen this threat the firms can design a supply
chain strategy that involves the overall supply chain in identifying and hit the opportunities for an
improved sustainability.

Challenges faced by Pizza Hut

The challenges faced by Pizza Hut in achieving strategic fit include;

Globalization & increasing uncertainty

Changing technology and business environment

The environment & sustainability issue

Pizza Hut has been sweating blood since its inception to lessen these issues to their minimal possible level and
is proud to publicize its success in achieving this. Globalization and increasing taxation has severely affect
Pizza Hut but they still managed to cope with these uncertainties by their interesting deal offers, increasing
service level, while reduced lead times, and by coming up with some of the most deliciously innovative
products to keep the customers lured.

In such a highly competitive market, where Pizza Hut faces a lot competition and differentiations that may lead
to outdoing Pizza Hut but it stands firm in the market of Pizzas by its counter strategies of coming up with a
higher quality innovative products, service etc.

Thirdly, environment and sustainability is an issue that every organization has encountered in this era
and so has Pizza Hut, but it deals with this issue efficaciously by introducing the boxes, in which the
pizza is served in the take away orders, which are environment friendly and do not harm our precious
nature in any way.

FORECASTING
Pizza Hut estimates demand on day by day bases. Demand estimation depends on past demands last
month and last year Demand estimation is done through the team of pizza hut which includes
managers and the directors of the specific outlet. They access clients request for pizza, both, the
home delivery \and those clients who used to eat hotel.

This is obvious that pizza hut also had to see their competitors in the market to predict the demand for e.g. a
new outlet of competitor is been launched with a great discount deals. Sales

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increases in the occasions or festivals in Pakistan like on Eid-ul-fitr. So they estimate demand of last
year’s data that how much demand was there at last year Eid. Somehow weather al so affects the
demand of pizza like in winters demand increases as compared to summers.

Initial preparations:
After forecasting demand they have to prepare Dough, toppings, dips , salad etc. so that whenever
customer places order so they can provide them as soon as possible so that they don’t have to wait
long for their order. The basic purpose of forecasting demand is to make available things for
customers.

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. They are ready with different patties pizza base). During peak hour they
provide the pizza making time of 15 – 20 minutes. In normal case they provide the pizza making time
of 10 – 14 minutes.

SALES AND OPERATIONS PLANNING

S&OP meeting brings officials from all major operational divisions – deals, advertising, materials/acquirement,
assembling and transportation. In pizza hut Month to month S&OP gatherings are a basic leadership action that
sets the general course for the organization. In pizza hut the initial phase in S&OP is to check demand, is
needed to manufacture according to the demand. The advantage streams emerging from develop and
appropriately organized S&OP procedures are very much archived: stock is diminished, limit is better used,
throughput is

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expanded, income streams turn out to be more unsurprising, new items are presented consistently, and
organizations see enhanced income and benefit. Business pioneers who utilize S&OP regularly feel as though
they have a superior handle on-or control over-their operations.

A number of tasks need to be completed prior to each S&OP meeting and the best possible
alternatives in these problems. This includes:

Innovation and Strategy review – impact of New Product in the market

Demand Planning – includes base-line demand as well as demand sensing and demand shaping
activities

Supply Planning – monitor inventory levels and production capabilities

Financial Integration – ensure demand planning, supply planning, and inventory

optimization meet company financial objectives and are within working capital constraints

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.
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CONCLUSION
As a conclusion, Pizza Hut is a great company in managing their productivity. Pizza Hut is the largest
pizza restaurant corporation in the globe according of both the number of outlets and the percentage
of market share that it has.

Pizza Hut company has a great demand in the market. There are many factors that affect demand of Pizza Hut.
Namely, price of other goods (substitute), customer preferences and tastes and consumer income. Price of other
goods affects demand of Pizza Hut. Consumer will find other alternative if price of pizza in Pizza Hut
increases. Thus demand of Pizza hut decreases. Secondly, customer preferences and tastes also affect demand
of Pizza Hut. If Pizza Hut couldn't satisfy consumer tastes, the demand of pizza Hut will drop as consumer will
find other alternative that satisfy them. Next factors that affect demand of Pizza Hut are consumer

income. Other things being equal, when income increases, consumer’s demand for more goods and services
will increase. Thus, when consumers’ income increases, the demand for Pizza Hut

will also increase. Taxation also affects demand of Pizza Hut. The higher the taxes that charged in
Pizza Hut, the lower the purchasing power of consumer. Thus this decreases the demand for Pizza
Hut.

Pizza Hut tends to have an elastic demand. Elastic demand happen when there is a small change in percentage
of price of a product will lead to a larger percentage change in quantity demanded. As a proof, consumer
will not consume Pizza Hut if the price increases. Consumer will try to find another alternative.
Therefore, it decreases demand of Pizza Hut.

It is clearly shown that from the survey that Pizza Hut has many loyal customers. This is proved
when the survey shows that customer satisfaction is at the good parameter for quality, price, store,
ambiance and service. This also can be proved when 11 out of 14 people agree that eating Pizza Hut
is value for money. The suggestions we can provide to Pizza Hut in improving their services are to
include more new dishes to their menu so that customers would have more choices to choose. Pizza
Hut also should regularly make a discount such as by creating a combo meals and giving discount
vouchers.

RECOMMENDATION
The supply chain strategy of Pizza Hut is very good but there area of supply is so small. They are providing
their 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 these 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 their 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 than making it at home.
After implementing these strategies they can get:

Maximum return on their investment

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