Organisations & Environment
Assessment 2 – Case Study – Pizza Hut
Word Count: 1865
Introduction to Pizza HutP.2
Social/ Cultural FactorsP.4
Case study: Pest Analysis – Fast –food sector: Pizza Hut
Using Pest analysis, this report attempts to identify strengths and weaknesses associated with a company in the fast food industry.
Pizza hut is a fast food retailer originating from Wichita, Kansas, USA. The founders, Frank and Dan Carney opened the first store in 1958 with the ambition of offering great local pizza to the community. With a small 25 seating restaurant and aspiring entrepreneurs at the helm, Pizza hut was born. Fifteen years down the line and Pizza Hut goes international, opening stores in Japan, England and Canada. The first store in England was opened in Islington in 1973 and was to be the first of many. Four years later PepsiCo, a soft drink manufacturer, bought Pizza hut with the intention of expanding the business and creating a leader in the fast food industry. By 1990 there were 200 stores in the UK and a further 100 would be open before the end of 1993. By 2005 Pizza hut had over 500 stores and employed over 20,000 people in the UK. (Pizza Hut, 2009)
Pizza Hut, after another major takeover, is now owned by YUM, an American based food organisation responsible for other well-known fast food chains such as KFC and Taco Bell.
“We take pride in making a perfect pizza and providing courteous and helpful service on time all the time. Every customer says, "I'll be back!” We are the employer of choice offering team members opportunities for growth, advancement, and rewarding careers in a fun, safe working environment. We are accountable for profitability in everything we do, providing our shareholders with value growth.” (Pizza Hut Hawaii, 2008) Political
Being an international brand, Pizza Hut has a global diversity programme through the owning organisation YUM. The aim is to offer equal opportunities regardless of race, sex or age. Therefore conforming to their motto,
“Everyone, at every level, can truly make a difference.” (David Novak, 2009)
YUM boast impressive figures on employment of ethnic minorities and women within their restaurant chains. According to their website, “About 30 percent of our associates are Caucasian and the remaining 70 percent are Hispanic, African American and/or Asian. Minorities and women made up 64 percent of our external management hires and 41 percent of internal management hires (promotions) in 2007.” (YUM! Global Diversity, 2009)
Hygiene and food cleanliness is also a major part of YUM and Pizza Huts trading ethics. From information collected on the website it is apparent that YUM and its brands are dedicated to exceeding the standards required by legislation for cleanliness and hygiene in the workplace. Through active communication with suppliers YUM ensure their products are “Safe and of superior quality”, as well as boasting the most rigorous product approval process for their suppliers to conform to. (YUM Nutrition, 2009)
In the current economic downturn eating out has become a luxury and is easily bypassed as a means of saving money. The high unemployment rate has caused consumption to decrease and an alteration in consumer spending habits. However, Pizza Hut is a low cost, fast food restaurant. This makes the product more income inelastic than other, more exclusive restaurants and may help it fare better during this difficult time. Evidence of this can be found in statistics from the recession in the 1990’s when Pizza Huts sales increased by 61%. (Amanda Stock, 2008)
Despite these dated results, Pizza Hut has seen a downturn in this recession to a point where it is slowing progress and expansion for the other YUM...