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Company Profile of Pizza Hut

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Company Profile of Pizza Hut
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Pratik Kukreja
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Company Profile of Pizza Hut - May 12th, 2011

Company Profile of Pizza Hut : Pizza Hut (corporately known as Pizza Hut, Inc.) is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including pasta, buffalo wings, breadsticks, and garlic bread.
Pizza Hut is a subsidiary of Yum! Brands, Inc. (the world's largest restaurant company[2]) with approximately 34,000 restaurants, delivery/carry-out locations, and kiosks in 100 countries.

When it comes to tossing around dough, no one does it more often than Pizza Hut. The unit of YUM! Brands operates the world's #1 pizza chain with more than 13,200 outlets in about 90 countries worldwide. The chain serves a variety of pizza styles, including its flagship Pan Pizza, as well as Thin n' Crispy, Stuffed Crust, Hand Tossed, and Sicilian. Other menu items include pasta, salads, and sandwiches. Pizza Hut offers dine-in service at its characteristic red-roofed restaurants, as well as carry-out and delivery service. About 15% of the restaurants are company-operated, while the rest are franchised. The world's largest fast food company, YUM! Brands runs KFC and Taco Bell in addition to Pizza Hut.

Pizza Hut Inc. is the largest pizza restaurant company in the world in terms of both the number of outlets and the percentage of market share that it holds. A subsidiary of PepsiCo, Inc., the company oversees more than 11,000 pizza restaurants and delivery outlets in 90 countries worldwide. In October 1997, the company expected to become a subsidiary of Tricon Global Restaurants, Inc., formed from the spin-off of PepsiCo's restaurant holdings.

Pizza Hut is split into several different restaurant formats; the original family-style dine-in locations; store front delivery and carry-out locations; and hybrid locations that offer carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a special pasta. Additionally, Pizza Hut also has a number of other business concepts that are different from the store type; Pizza Hut "Bistro" locations are "Red Roof"s which offer an expanded menu and slightly more upscale options.
"Pizza Hut Express" and "The Hut" locations are fast food restaurants. They offer a limited menu with many products not found at traditional Pizza Huts. These type of stores are often paired in a colocated location with a sibling brand such as Wing Street, KFC or Taco Bell, and are also found on college campuses, food courts, theme parks, and in stores such as Target.
Traditionally, Pizza Hut has been known for its ambiance as much as pizza. Vintage "Red Roof" locations can be found throughout the United States, and quite a few exist in the UK and Australia. Even so, many such locations offer delivery/carryout service. This building style was common in the 1960s and 1970s. The name "Red Roof" is somewhat anachronistic now, since many locations have brown roofs. Dozens of "Red Roofs" have closed or been relocated/rebuilt. Many "Red Roof" branches have beer if not a full bar, music from a jukebox, and sometimes an arcade. In the 1980s, the company moved into other successful formats including delivery/carryout and the fast food "Express" model.
The oldest continuously operating Pizza Hut in the world is in Manhattan, Kansas, in a shopping and tavern district known as Aggieville near Kansas State University.


In 1994 several changes resulted in the company's first decline in operating profits in 15 years. The pizza market was no longer growing; fast food rivals cut prices; and investment in new outlets was draining corporate resources. PepsiCo's restaurant division saw sales in restaurants open at least one year fall six percent in 1994, contributing to a drop in profits of 21 percent (to $295 million).
In an effort to change this disturbing direction, Roger A. Enrico moved from PepsiCo's beverage and snack food divisions to head the restaurant division in 1994. His first move was to heavily promote a new product: stuffed crust pizza, a pizza with a ring of mozzarella folded into the outer edge of the crust. The company used a massive advertising campaign to promote the new product, including television commercials that paired celebrities eating their pizzas crust first.
Some indicators were promising: market share rose from 25.6 to 27 percent; 1995 sales increased 16 percent to $5.2 billion; and operating income rose to $414 million, up 40 percent from the year before. In 1996 Pizza Hut planned to introduce a major new product each year and two or three line extensions. The following year it followed through on this course, introducing Totally New Pizzas with 67 percent more toppings than previous pizzas and thicker sauce. The company allocated $50 million for the project, part of which was to be used to install new or improved ovens. In 1996 Pizza Hut accounted for 17 percent of PepsiCo's total sales and 13 percent of its operating profit.
However, these gains could not offset the drain that capital investment placed on PepsiCo's other divisions. The parent company's return on assets was significantly greater in its beverage and snack food divisions than in its restaurant division. In the late 1990s, PepsiCo drew together its restaurant businesses, including Pizza Hut, Taco Bell, and KFC. All operations were now overseen by a single senior manager, and most back office operations, including payroll, data processing, and accounts payable, were combined. In January 1997 the company announced plans to spin off this restaurant division, creating an independent publicly traded company called Tricon Global Restaurants, Inc. The formal plan, approved by the PepsiCo board of directors in August 1997, stipulated that each PepsiCo shareholder would receive one share of Tricon stock for every ten shares of PepsiCo stock owned. The plan also required Tricon to pay a one-time distribution of $4.5 billion at the time of the spinoff. If approved by the Securities and Exchange Commission, the spinoff would take place on October 6, 1997.
Enrico, who had risen to the position of PepsiCo CEO, explained the move: "Our goal in taking these steps is to dramatically sharpen PepsiCo's focus. Our restaurant business has tremendous financial strength and a very bright future. However, given the distinctly different dynamics of restaurants and packaged goods, we believe all our businesses can better flourish with two separate and distinct managements and corporate structures."

Statistics:
Wholly Owned Subsidiary of PepsiCo, Inc.
Incorporated: 1959
Employees: 140,000
Sales: $5.1 billion (1996)
SICs: 5812 Eating Places; 6794 Patent Owners & Lessors


Key People
• President and Chief Concept Officer: Scott O. Bergren
• COO: Patrick C. (Pat) Murtha
• CFO: David Gibbs

Address:
9111 East Douglas
Wichita, Kansas 67027
U.S.A.
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Last edited by bhautik.kawa; July 19th, 2016 at 08:06 PM..
   
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Re: Company Profile of Pizza Hut
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Re: Company Profile of Pizza Hut - June 29th, 2015

Well, we all know about pizza hut and their background. But, recently nothing seems like working for them, recently they have to closed their 4 outlets, which is the indication of their tumbling. When you tumble then there are numerous factors that contribute to it, so you cannot find what went wrong. You just have to give deep thought about it and start fresh. Pizza hut also needed to do that. They have to gear up if they want to survive in the market.
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