Pizza Hut

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“Should Pizza Hut open a new outlet in Baroda?”

Word count:4059(without abstract)

Abstract

Pizza Hut is the largest restaurant chain with over 123 restaurant crossways in 32 cities. Pizza Hut is planning to open a new outlet in Baroda. Consequently, Pizza Hut believes that they can increase their growth by forthcoming outlet successfully. Executives at Pizza Hut are currently investigating various methods in support of opening a new outlet. This essay aims to answer the following question:

“Should Pizza Hut open a new outlet in Baroda?”

In order to reach a valid conclusion, analysis of both qualitative and quantitative factors were conducted. The primary data was obtained through interviewing the Manager of Pizza Hut in Baroda’s present outlet. Additionally, questionnaires were distributed among the other. Business techniques such as the ansoff matrix, cost analysis, pest-g analysis, swot analysis, and investment appraisal were conducted and implemented in order to collect the data. This essay recommends that Pizza Hut should open a new outlet as a means of augmenting domestic sales. The questionnaire was conducted in Baroda, Gujarat; therefore the response received from the customers only presented the views of them in Baroda and not the whole of Baroda, and it only presents limited view in the locality near proposed site of Pizza Hut’ outlet. Consequently, further research will have to be undertaken in Baroda to determine if opening a new outlet will be a successful to increase growth in Baroda.

Word count : 227

Table of content

Introduction ………………………………….4
Research question…………………………6
Theoretical framework………………….7
Methodology………………………………….8
Market research…………………………….9
Analysis of market research………..11
Swot analysis ………………………………12
Ansoff’s matrix………………………………15
Pest-g…………………………………………….17 Competitor analysis……………………….18
Cost analysis…………………………………..19
Investment appraisal……………………..21
Organizational changes…………………..24
Recommendation
Conclusion

Introduction

Pizza Hut is based in Wichita, Kansas USA 19581. A woman and her two sons created pizza recipes. From here, a family friend advised the sons to open their own Pizza Parlor.2. Pizza Hut is one of the flagship brands of Yum! Brands, Inc., which also has KFC, Taco Bell, A&W and Long John Silver’s under its umbrella. Pizza Hut is the world’s largest pizza chain with over 12,500 restaurants across 91 countries 3.

In India, Pizza Hut has 133 restaurants across 34 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Chandigarh amongst others. Yum! is in the process of opening Pizza Hut restaurants at many more locations to service a larger customer base across the country 4.

Borrowing $600 from their mother, the two brothers purchased second-hand equipment and rented a small building on a busy intersection in Wichita, Kansas. The result of their efforts was the first Pizza Hut and the foundation for what would become the largest and the most successful pizza restaurant in the world 5. Pizza Hut franchisees exemplify the entrepreneurial spirit, which launched their system back in 1958. Through interest and initiative, the Pizza Hut system was able to develop new territories in the United States and overseas.

Today, franchisees and joint-venture partnerships account for more than half of the Pizza Hut system's total units. Their development on the international front is a good indication of the growth that has characterized their system. Following the opening of the first international restaurant in Canada in 1968, the Pizza Hut restaurants quickly appeared in Mexico, South America, Australia, Europe, the Far East and Africa. Today, Pizza Hut operates in more than 100 countries and territories throughout the world 6. When Pizza Hut opened its outlet in Baroda, Gujarat they firstly...
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