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PROJECT REPORT ON Brand loyalty of pizza hut and dominos

Submitted in partial fulfillment of requirement of Bachelor of Business Administration (B.B.A) General

BBA VI Semester (2nd shift, Section -A) Batch 2010-2013

Submitted to: Ms. Palak Gupta Designation

Submitted by: Mukesh kumar 03724501710


Students Undertaking

I hereby certify that this is my original work and it has never been submitted elsewhere

by: Mukesh kumar


Description Acknowledgement Executive Summary Certificate of completion Introduction to topic Objectives Literature review Research Methodology Analysis &Interpretation Findings & Techniques Recommendations & conclusions Bibliography

Page no. 4 5 6 7 11 12 43 44 56 77 78


I would like to take an opportunity to thank all the people who helped me in collecting necessary information and making the project. I am grateful to all of them for their time, energy and wisdom. Getting a project ready requires the work and effort. I would like to thank all those who have contributed in completing this project. Specially, I would like to send my sincere thanks to Ms. Palak Gupta for her helpful hand in the completion of my project.


The study aims to study Pizza Hut started out as a pizza parlor opened up by two brothers in Topeka, Kansas. Today, the company has restaurants all over the world

and its annual sales are in the billions. The growth of the company was due to a good product being delivered at a good price and offering perceived value. The company

has adjusted to new entrants into the market and has managed to stay ahead of the competition. The philosophy for growth is simple: Take care of the customer, and the customer will take care of you. Pizza hut focused on providing good customer service in order to In return, the customer will return and more importantly, the become an advocate.

create customer loyalty. customer will

Customer feedback programs were put into place in order to measure the customer experience and also to uncover opportunities. The restaurant managers are paid The problem was that

bonuses based on the result from their respective customers.

the company noticed that managers of underperforming locations where receiving bonuses while managers of extremely profitable locations were not. Recommendations have been made in order to fine tune the bonus plan so that manager incentives will be balance between profits and customer service.

Pizza Hut is a pioneer and continues innovation with its service initiatives and product lineup. As long as the company keeps focusing on its customers, then the company

will still be a leader for generations to come.

Domino's Pizza is the largest pizza deliverer in the United States, with stores in over 50 countries. Recently, Domino's competition has come from other pizza places like Papa John's, Pizza Hut, and Little Caesar. In order to better their brand image, a marketing campaign was created that changed their recipe due to poor customer reviews. The hope is that the new and improved recipe means new and more frequent customers. Research was conducted to see if Domino's pizza's new taste and campaign had an effect on Chicago's pizza market. Chicago's pizza business consists of brands like Giordano's, Uno's, and Connie's. These chains defined the quality expected

of all pizza in Chicago. Nearly 75% of Chicago land people surveyed have not had Domino's in over six months to over a year, proving that the new campaign Domino's started is not working. In our focus group taste test, the pizza was widely construed as terrible, but not bad for the quantity of pizza. Domino's is seen as a value meal, as people order our pizza en masse for large groups because it is more cost -effective than other pizza delivery places. In an open -ended survey question, more people in Chicago preferred Giordano's pizza than to any other pizza, delivery or dine in. Domino's aims to create a new restaurant chain that can compete with well established pizza franchises like Giordanos. We have a good grasp on people who want to eat for cheap, but now energy should be focused on the dine in restaurant service


This is to certify that MUKESH KUMAR of BBA VI A (E) has prepared this project sincerely and satisfactorily under my guidance. The project is complete to the best of my knowledge and worth appreciation.

Project guide:


Fast food is one of the worlds largest fast growing industry types. Indias fast food industry is growing by 40%. The 6000 corer fast food retail industry is mainly dominated by the multinational players and the key players which are active in the research of the food retailing. Because of the availability of raw material for fast food, global chains are flooding into the country. The percentage share held by foodservice of total consumer expenditure on food has increased from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in Indian culture and changes in eating habits are very slow moving with barriers to eating out entrenched in certain sectors of Indian society. The growth in nuclear families, particularly in urban India, exposure to global media and western cuisine and an increasing number of women joining the workforce have had an impact on eating out trends.

Major players in fast food are:

McDonalds KFC Pizza hut Dominos pizza Caf coffee day Barista Subway Papa John Smoking joeys

To find out the market strateg ices of both the brands.

To find out the various forces and their results on the industry.

To find out the comparative analysis between Pizza-hut and dominos-pizza.

To check out the preferences of the people or the consumers.

To find out which factors are more preferred by the customers.



Brand Loyalty is a scenario where the consumer fears purchasing and consuming product from another brand which he does not trust. It is measured through methods like word of mouth publicity, repetitive buying, price sensitivity, commitment, brand trust, customer satisfaction, etc. Brand loyalty is the extent to which a consumer constantly buys the same brand within a product category. The consumers remain loyal to a specific brand as long as it is available. They do not buy from other suppliers within the product category. Brand loyalty exists when the consumer feels that the brand consists of right product characteristics and quality at right price. Even if the other brands are available at cheaper price or superior quality, the brand loyal consumer will stick to his brand. Brand loyal consumers are the foundation of an organization. Greater loyalty levels lead to less marketing expenditure because the brand loyal customers promote the brand positively. Also, it acts as a means of launching and introducing more products that are targeted at same customers at less expenditure. It also restrains new competitors in the market. Brand loyalty is a key component of brand equity. Brand loyalty can be developed through various measures such as quick service, ensuring quality products, continuous improvement, wide distribution network, etc. When consumers are brand loyal they love you for being you, and they will minutely consider any other alternative brand as a replacement. Examples of brand loyalty can be seen in US where true Apple customers have the brand's logo tattooed onto their bodies. Similarly in Finland, Nokia customers remained loyal to Nokia because they admired the design of the handsets or because of user- friendly menu system used by Nokia phones. Brand loyalty can be defined as relative possibility of customer shifting to another brand in case there is a change in products features, price or quality. As brand loyalty increases, customers will respond less to competitive moves and actions. Brand loyal customers remain committed to the brand, are willing to pay higher price for that brand, and will promote their brand always. A company having brand loyal customers will have greater sales, less marketing and advertising costs, and best pricing. This is because the brand loyal customers are less reluctant to shift to other brands, respond less to price changes and self- promote the brand as they perceive that their brand have unique value which is not provided by other competitive brands. Brand loyalty is always developed post purchase. To develop brand loyalty, an organization should know their niche market, target them, support their product, ensure easy access of their product, provide customer satisfaction, bring constant innovation in their product and offer schemes on their product so as to ensure that customers repeatedly purchase the product.

Brand loyalty is where a person buys products from the same manufacturer repeatedly rather than from other suppliers.[1] In a survey of nearly 200 senior marketing managers, 69 percent responded that they found the "loyalty" metric very useful.[2] Purpose Brand loyalty, in marketing, consists of a consumer's commitment to repurchase or otherwise continue using the brand and can be demonstrated by repeated buying of a product or service, or other positive behaviors such as word of mouth advocacy. [3] Examples of brand loyalty promotions

My Coke Rewards Pepsi Stuff Marriott Rewards

Construction Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of convenience.[4] Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when customers have a high relative attitude toward the brand which is then exhibited through repurchase behavior.[3] This type of loyalty can be a great asset to the firm: customers are willing to pay higher prices, they may cost less to serve, and can bring new customers to the firm. [5][6] For example, if Joe has brand loyalty to Company A he will purchase Company A's products even if Company B's are cheaper and/or of a higher quality. From the point of view of many marketers, loyalty to the brand in terms of consumer usage is a key factor. Usage rate Most important of all, in this context, is usually the 'rate' of usage, to which the Pareto 80-20 Rule applies. Kotler's 'heavy users' are likely to be disproportionately important to the brand (typically, 20 percent of users accounting for 80 percent of usage and of suppliers' profit). As a result, suppliers often segment their customers into 'heavy', 'medium' and 'light' users; as far as they can, they target 'heavy users'. Loyalty


A second dimension, however, is whether the customer is committed to the brand. Philip Kotler, again, defines four patterns of behaviour: 1. Hard-core Loyals - who buy the brand all the time. 2. Split Loyals - loyal to two or three brands. 3. Shifting Loyals - moving from one brand to another. 4. Switchers - with no loyalty (possibly 'deal-prone', constantly looking for bargains or 'vanity prone', looking for something different). Factors influencing brand loyalty It has been suggested that loyalty includes some degree of pre-dispositional commitment toward a brand. Brand loyalty is viewed as multidimensional construct. It is determined by several distinct psychological processes and it entails multivariate measurements. Customers' perceived value, brand trust, customers' satisfaction, repeat purchase behavior, and commitment are found to be the key influencing factors of brand loyalty. Commitment and repeated purchase behavior are considered as necessary conditions for brand loyalty followed by perceived value, satisfaction, and brand trust. [7] Fred Reichheld,[8] One of the most influential writers on brand loyalty, claimed that enhancing customer loyalty could have dramatic effects on profitability. Among the benefits from brand loyalty specifically, longer tenure or staying as a customer for longer was said to be lower sensitivity to price. This claim had not been empirically tested until recently. Recent research[9] found evidence that longer-term customers were indeed less sensitive to price increases. Industrial markets In industrial markets, organizations regard the 'heavy users' as 'major accounts' to be handled by senior sales personnel and even managers; whereas the 'light users' may be handled by the general salesforce or by a dealer.

Portfolios of brands Andrew Ehrenberg, then of the London Business School said that consumers buy 'portfolios of brands'. They switch regularly between brands, often because they simply want a change. Thus, 'brand penetration' or 'brand share' reflects only a statistical chance that the majority of customers will buy that brand next time as part of a portfolio of brands they favour. It does not guarantee that they will stay loyal.


Influencing the statistical probabilities facing a consumer choosing from a portfolio of preferred brands, which is required in this context, is a very different role for a brand manager; compared with the much simpler one traditionally described of recruiting and holding dedicated customers. The concept also emphasises the need for managing continuity. Cautions One of the most prominent features of many markets is their overall stability or marketing inertia. Thus, in their essential characteristics they change very slowly, often over decades sometimes centuries rather than over months. This stability has two very important implications. The first is that those who are clear brand leaders are especially well placed in relation to their competitors and should want to further the inertia which lies behind that stable position. This, however, still demands a continuing pattern of minor changes to keep up with the marginal changes in consumer taste (which may be minor to the theorist but will still be crucial in terms of those consumers' purchasing patterns as markets do not favour the over-complacent). These minor investments are a small price to pay for the long term profits which brand leaders usually enjoy. The second, and more important, is that someone who wishes to overturn this stability and change the market (or significantly change one's position in it), massive investments must be expected to be made in order to succeed. Even though stability is the natural state of markets, sudden changes can still occur, and the environment must be constantly scanned for signs of these.


Pizza hut
Pizza Hutwas founded in 1958 by brothers Dan and Frank Carney in theirhometown of Wichita, Kansas. When a friend suggested opening a pizza parlor--thena rarity--they agreed that the idea could prove successful, and they borrowed $600from their mother to start a business with partner John Bender. Renting a smallbuilding at 503 South Bluff in downtown Wichita and purchasingsecondhand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut restaurant. A year later, in 1959, Pizza Hut was incorporated in Kansas, and DickHassur opened the first franchise unit in Topeka, Kansas.

in the early 1960s Pizza Hut grew on the strength of aggressive marketing of thepizza restaurant idea. In 1962, the Carney brothers bought out the interest held byBender, and Robert Chisholm joined the company as treasurer. In 1966, when thenumber of Pizza Hut franchisee units had grown to 145, a home office wasestablished to coordinate the businesses from Wichita. Two years later, the firstPizza Hut franchise was opened in Canada. This was followed by the establishmentof the International Pizza Hut Franchise Holders Association (IPHFHA). It aimed atacquiring 40 percent of the company's franchise operations, or 120 stores, andadding them to the six outlets wholly owned by Pizza Hut.In early 1970 Frank Carney decided that the business strategy was inadequate, andthat a more developed, long-term business plan was necessary. The turning pointoccurred when Pizza Hut went public and began growing at an unprecedented pace.In 1970 Pizza Hut opened units in Munich, Germany, and Sydney, Australia. Thatsame year, the chain's 500th restaurant opened, in Nashville, Tennessee.In 1971 Pizza Hut became the world's largest pizza chain, according to sales andnumber of restaurants. A year later the chain gained a listing on the New York StockExchange. Pizza Hut also achieved, for the first time, a one million dollar sales weekin the U.S. market.At the end of 1972 Pizza Hut made its long-anticipated offer of 410,000 shares of common stock to the public. The company expanded by purchasing threerestaurant divisions: Taco Kid, Next Door, and the Flaming Steer.In 1973 Pizza Hut expanded further by opening outlets in Japan and Great Britain. Three years later the chain had more than 100 restaurants outside the UnitedStates and two thousand units in its franchise network.In 1977 Pizza Hut merged with PepsiCo, becoming a division of the global soft drinkand foodconglomerate. Sales that year reached $436 million, and a new $10 milliondollar headquarters office opened in Wichita. The 1980s brought new competitors to Pizza Hut, all challenging its number oneposition in the pizza restaurant trade, then worth $15billionin sales annually in theUnited States alone. Also, to raise its profile, Pizza Hut introduced "Pan Pizza" in1980 throughout its network.In 1984 Steven Reinemund was appointed president and chief executive officer of Pizza Hut. In 1986 Pizza Hut opened its 5,000th franchise unit, in Dallas, Texas, andbegan its successful home delivery service. By the 1990s the delivery andcarryout business had grown to account for approximately 25

percent of the company's totalsales.By 1986 there were 100 restaurants in UK and 5000

worldwide.In 1990 Pizza Hut opened its first restaurant in Moscow. The Moscow locationquickly established itself as Pizza Hut's highest volume unit in the world.Restaurants just behind in total volume served were found in France, Hong Kong,Finland, and Britain.PepsiCo took advantage of global change following the end of the Cold War,expanding Pizza Hut into new and emerging markets. In 1991 PepsiCo hadrestaurant outlets in 80 countries and by 1997, Pizza Hut restaurants had spread to90 countries.In 1994 several changes resulted in the company's first decline in operating profitsin 15 years. The pizza market was no longer growing; fast food rivals cut prices; andinvestment in new outlets was draining corporate resources. PepsiCo's restaurantdivision 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).Some indicators were promising: market share rose from 25.6 to 27 percent; 1995sales increased 16 percent to $5.2 billion; and operating income rose to $414million, up 40 percent from the year before.In 1996 Pizza Hut planned to introduce a major new product each year and two orthree line extensions. In 1996 Pizza Hut accounted for 17 percent of PepsiCo's totalsales and 13 percent of its operating profit.In the late 1990s, PepsiCo drew together its restaurant businesses, including PizzaHut, Taco Bell, and KFC. 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 boardof directors in August 1997, stipulated that each PepsiCo shareholder would receiveone share of Tricon stock for every ten shares of PepsiCo stock owned. The planalso required Tricon to pay a one-time distribution of $4.5 billion at the time of thespinoff . If approved by the Securities and Exchange Commission, the spinoff wouldtake place on October 6, 1997.In July 2000, Pizza Hut became the first company in historyto place its logo o n the worlds largest proton rocket.In 2002, Tricon Global became YUM! BRANDS INC.In 2006, Whitbread sold their shares to the joint venture to Yum! Brands Inc. Also as a result, Pizza Hut Inc. UK was100% owned by Yum! Lastly, up to date in 2008, Pizza hut owners have boughtGodfathers Pizza with 28 stores in Ireland.Enrico, who had risen to the position of PepsiCo CEO,explained the move: "Our goal in taking these steps is todramatically sharpen PepsiCo's focus. Our restaurantbusiness has tremendous financial strength and a verybright future. However, given the distinctly different dynamics of restaurants andpackaged goods, we believe all our businesses can better flourish with two separate and distinct managements and
corporate structures."


Pizza Huts Mission Statement

To be the first choice among restaurants and delivering brands by developing ourpeople capability to deliver maniacal service, product quality , 100% customersatisfaction, innovation and building great look and feel restaurants to provideattractive returns to our stake holders.And also known through the P.E.A.R.L.S conceptP.E.A.R.L.S P ASSION for excellence in doing everything. E XECUTE with positive energy and urgency. A CCOUNTABLE for growth in customer satisfaction and profitability. R ECONGNIZE the achievement of others and have fun doing it. L ISTEN and importantly, respond to the voice of the customers.


In our visit to Pizza Hut and Technological Analysis. we conducted research on Economical, Social

ECONOMICAL FACTORS:If the countrys economy is strong, hence the GDP of the country will bepowerful also, this is a green signal for the business as the per capita incomeif the people will be increased and they will spend more money. In our surveywe came to know that most of the people in the beginning of the monthsspend more and they visit pizza hut very often. When the inflation rateincreases the cost of raw material also increases and this leads towards highprices of the products and vice versa. SOCIAL FACTORS: Pizza hut is multinational. It has basically originated fromAmerica, so the organization is overwhelmed by the westernculture. There are social forms of society which consist of upper class, middle class and lower class. Every country hascultural norms, values, beliefs and religious obligationswhich can affect the organization. TECHNOLOGICAL FACTORS:Now a days technology is improving, where as baking and heating ovens willbe of new and efficient technology and will provide efficient service. Due tonew technology there are new ways of marketing like: internet, telemarketingand the organization can advertise their products with much faster pace.Computer based customer data is MIS (managing information systems) helpsin

collecting customer data, daily transactions, future forecasting anddecision making. New vehicles will make their service more efficient.


A businesss strategy is the pattern of decisions and actions that are taken by the business to achieve its goals. A business has a variety of goals and objectives. All businesses need to organize their business activities in order to achieve their business objectives. Running a business involves planning the current as well as the future activities. Hence, in order to achieve the business objectives, all business organizations adopt different strategies. Similarly, Pizza Hut has adopted many strategies which help achieve the targets set by the main office. Changes are the external as well as internal environment has led Pizza Hut to rethink their past strategies and has therefore designed new strategies after noticing the changes in the environment. These environmental changes are seen through the SWOT analysis. After considering all the factors, Pizza Hut has decided upon the strategies and their current strategies are divided into five main categories and further have sub-parts. The strategies are as below:-

Functional Strategies:
These are strategies designed to improve the efficiency of a businesss operations. They often focus on an area, such as marketing, human resources and etc. All business organizations adopt strategies at functional level and as the function all level is achieved, corporate objectives become easy. In order to make the functional strategy efficient, Pizza Hut has made all the functional departments cooperate with each other.

Total Quality Management (TQM):

This is the most important factor for a food chain like Pizza Hut. All the employees back-of-the-house i.e. the kitchen assistants are trained accordingly. They are given extra classes in order to meet the quality standards set by Pizza Hut, around the world. This strategy is important in order to satisfy the customers. This strategy is strictly implemented in Pizza Hut in order to fulfill the quality standards. Different quality management staff is also present at Pizza Hut. The shift managers have the task to observe whether the quality standards are met or not, whereas there is a total quality standards department at the main office in Karachi. This department has the task to implement quality standards and know whether they are achieved or not.

Business Level Strategy:Business level strategies are plans made to gain a competitive advantage over its rivals in a market. Hence, all the businesses need to adopt business level strategies in order to compete in a competitive environment. If we take a look at the Pakistani market, there are no large competitors of Pizza Hut, but unlimited small competitors exist in the market. The threat of competitors is very low as there is no international food chain

offering pizza in Pakistan at present. Therefore, present strategies adopted by Pizza Hut are keeping in consideration the present competition. Whereas, in the future this competition will increase and Pizza Hut will have to change all its business level strategies in order to compete with its rivals. Now as Dominos has opened in varies cities of Pakistan, it will result as a threat for Pizza Hut and hence, their strategies are to be taken into consideration for further modifications. Pricing Strategy: The level of competition a business faces determines its pricing strategy. Sometimes a business has the scope to set its price and other times it does not. When a business has the scope to set its prices this is a number of pricing strategies or policies it might choose. As there are no such competitors of Pizza Hut which could compete with the quality of pizza produced at Pizza Hut, therefore, the pricing strategy adopted by Pizza Huts market skimming. Pizza Hut has adopted this pricing strategy as they want to hold maximum share of the market by maximum profit. This is a golden era for Pizza Hut, as there are no competitors and hence, Pizza hut is free to charge any price they want. They are charging higher prices due to the uniqueness of the product. They satisfy the target market as the food quality is worth the price paid. The pricing strategy is not just to get the worth of quality but also to gain maximum profits before any competitor enters because then Pizza Hut will have to change its pricing strategy. Although the prices would be lowered with the new entrants in the market but not to a greater extent as the quality food products are not home-produced. They are imported

from different countries keeping in view the best quality

Market Share: As there are dozens of Pizza Suppliers globally providing services in different parts of the world, but Pizza Hut is the one who got the bigger market shares globally. This is a survey taken bywww.survey.comthat pizza hut is having 48% of overall Pizza market in the world. After that Dominos is leading with a percentage of 20%,while the rest 32% is divided in the remaining pizza provides globally.

WHO IS THE FRANCHISER? Pizza Hut represents a strong brand that has demonstrated economic stability over time. Pizza Hut is one of the flagships brands of YUM!Restaurant Int. Which also has KFC, Taco Bell, A&W and Long John Silvers under its umbrella. YUM! BRANDS: Yum! Brands, Inc., based in Louisville, Ky.- it is the worlds largest restaurant company in terms of system restaurants with more than 36,000restaurants in over 110 countries and territories and more than 1 million associates. Yum! is ranked #239 on the Fortune

500 List, with revenues in excess of $11 billion in 2008. Four of our restaurant brands KFC,Pizza Hut, Taco BellandLong John Silver's are the global leaders of the chicken, pizza, and Mexican-style food and quick-service seafood categories. In October 1997, Yum! Brands were spun off from PepsiCo as Trico Global Restaurants, Inc. At that moment it established as a singular goal from which they never wavered: To be the best in the world at building great brands and running great restaurants. Now At present Yum! Brands is the worldwide leader in Multi-branding, offering consumers choice, convenience, and value by combining two brands under one roof. Multi-brand opportunities still exist across America and offer franchisees a competitive edge as well as many advantages.



The Yum! System includes three operating segments: - U.S., International (Yum!Restaurants International) and China Division (includes mainland China, Thailand and KFC Taiwan). Outside the United States in 2008, the Yum! System opened more than four new restaurants each day of the year, making us the largest retail developer in the world . Franchise History When did the first Pizza Hut open?1957 When did Pizza Hut start Franchising?1959 YEAR U.S.A CANADA INTERNATIONAL CORPORATE





















How Much Does a Pizza Hut Franchise Cost? If you have a budget of between $1.3 million to $3 million and a net worth of $1 million with $360,000 in liquid assets, you can be in business within a year, but there are other requirements as well. You must commit to building at least 3restaurants over 3 years. Pizza Hut is part of an organization that offers tremendous franchise support including advertising, business coaching, training, development, and cooperative sourcing. Performance Improvement Programs and support are also offered to each new franchisee along with 12-16 weeks of required training. What We Like Yum! Brands offer the power of multi-branding that includes two National Media Budgets, two Category Leading Brands, and two menus. This can broaden customer appeal, which has the potential to increase the average check size. Field offices are located throughout the U.S. to support franchise and company restaurant operations. Pros Ranking - Ranked No. 1 in its category in 2008.


- Yum! Brand is the worldwide leader in Multi-branding. Cons Operations - Can take up to 46 weeks to open the first store, but its probably worth the wait

Today, in the Franchise 5ooRank , Pizza hut falls#7in the list whereas, in2008 itwas#4 In the list of Fastest-Growing Franchises it is listed #65 as of 2009 and in 2008 it was #23. And in the Americas Top Global Franchises it is ranked #7 in the year 2009 and in the past year it was at #9.Pizza Hut has built a strong reputation of its brand through giving quality products and has earned respect from its customers. Its innovation and quality has elevated them to higher standards during the past few years. But still the company is planning to encapsulate more market shares. In addition, Pizza Hut has diverse targets set for them and they have adopted different strategies to successfully achieve those targets set which will help them rank #1 in all categories in the near future. Pizza Hut is an American restaurant chain and international franchise that offers different styles of pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, and garlic bread. Corporately known as Pizza Hut, Inc., it is a subsidiary of Yum! Brands, Inc., the world's largest restaurant company.[2] As of 2012, there were more than 6,000 Pizza Hut restaurants in the United States, and more than 5,139 store locations in 94 other countries and territories around the world. [3] Pizza Hut was founded in 1958 by brothers Dan and Frank Carney in their hometown of Wichita, Kansas. When a friend suggested opening a pizza parlor then a raritythey agreed that the idea could prove successful, and they borrowed $600 from their mother to start a business with partner John Bender. Renting a small building at 503 South Bluff in downtown Wichita and purchasing secondhand equipment to make pizzas, the Carneys and Bender opened the first Pizza Hut restaurant; on opening night, they gave pizza away to encourage community interest. A year later, in 1959, Pizza Hut was incorporated in Kansas, and Dick Hassur opened the first franchise unit in Topeka. Concept and format This section does not cite any references or sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (January 2011)


Pizza Hut store (with distinctive roof and the older white sign used before 1999) in Athens, Ohio, typical of U.S. Pizza Hut restaurants

First Pizza Hut Building, Wichita, Kansas Pizza Hut is split into several different restaurant formats; the original family-style dinein 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 Roofs" 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 WingStreet, KFC or Taco Bell, and are also found on college campuses, food courts, theme parks, and in stores such as Target and Walmart. Vintage "Red Roof" locations can be found throughout the United States, and quite a few exist in the UK and Australia, and Mxico. Even so, many such locations offer delivery/carryout service. This building style was common in the late 1960s and early 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 mid 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. Products

Pizza Hut in Santiago, Chile

Pizza hut restaurant in Larnaca, Cyprus

Buffalo wings

Pizza Hut location in Santa Ana, El Salvador In North America, Pizza Hut sells "Stuffed crust " pizza, with the outermost edge wrapped around a cylinder of mozzarella cheese; "Hand-Tossed," more like traditional pizzeria crusts; "Thin 'N Crispy", a thin, crisp dough which was Pizza Hut's original style; "Dippin' Strips pizza", a pizza cut into small strips that can be dipped into a number of sauces; and "The Edge pizza," where the toppings nearly reach to the edge of the pizza. There was also formerly a crust that was not as thick as Pizza Hut's pan pizza,

and not as thin as its thin crust. This crust was used on the Full House XL pizza and discontinued in 2007. There are regional differences in the products and bases sold. [4] Pizza Hut experiments with new products frequently, with less successful ones being discontinued. These include the initially popular two-foot by one-foot square cut pizza Bigfoot, the 16" Big New Yorker, made with a sweet sauce, the Chicago Dish Pizza and Sicilian pizza, the latter also offered in 2006 as Lasagna Pizza. Other products Pizza Hut has offered are the "P'zone," which is Pizza Hut's version of the calzone; the Cheesy Bites pizza, similar to the Stuffed Crust pizza except the crust has been divided into 28 bite-sized pieces that can be pulled apart; and the Insider pizza, where a layer of cheese is in between two layers of dough. Another limited time offer was a Double Deep pizza with double the toppings and 50% more cheese, with the crust wrapped over the top to hold in all the toppings. In 1985 Pizza Hut introduced the Priazzo,[5] a two-crusted Italian pie that resembled a deep-dish pizza. Varieties included Priazzo Milano, a blend of Italian sausage, pepperoni, beef, pork fillings, a hint of bacon, mozzarella and cheddar cheese; Priazzo Florentine, a light blend of five cheeses with ham and a touch of spinach, and Priazzo Roma, stuffed with pepperoni, mushrooms, Italian sausage, pork filling, onions, mozzarella and cheddar cheese. The double-crusted pie was topped with a layer of tomato sauce and melted cheese. The Priazzo was introduced by a $15 million advertising campaign, but proved too labor-intensive and was removed from the menu several years later. Depending on the individual restaurant size, Pizza Huts also may offer pasta dinners such as spaghetti and Cavatini a mixture of Cavatelli (shells), Rotini (spirals), and Rotelle (wheels).

Pizza Hut Bistro concept location located in Indianapolis, Illinois A new, upscale concept was unveiled in 2004, called Pizza Hut Italian Bistro. Unveiled at fifty locations nationwide, the Bistro is similar to a traditional Pizza Hut, except that new, Italian themed dishes are offered, such as penne pasta, chicken pomodoro, toasted sandwiches and other foods.[6] Instead of black, white, and red, Bistro locations feature a burgundy and tan motif.[7] Pizza Hut Bistros still serve the chain's traditional pizzas and sides as well. In some cases, Pizza Hut has replaced a "Red Roof" location with the new concept. Pizza Hut on May 9, 2008, created and sold in Seattle, Denver, and Dallas, "The Natural", featuring organic ingredients. This was discontinued on October 27, 2009 in the Dallas market.[8] It has since launched a nationwide advertising campaign. Also in 2008, Pizza Hut created their biggest pizza ever, the Panormous Pizza.

A small Pizza Hut offering takeaway and delivery only in Bramley, Leeds, UK. Pizza Hut introduced stuffed pan pizza on August 23, 2009. Unlike a regular stuffed crust pizza, cheese is not inside the crust, just pressed into the pan crust. Pizza Hut introduced the Big Italy, a pizza that is almost two feet long on August 22, 2010. In 2010, Pizza Hut came under fire when its supplier of palm oil, Sinar Mas, was exposed to be illegally slashing and burning the Paradise Forests of Indonesia to plant palm oil plantations.[9]

Due to its previous ownership by PepsiCo, Pizza Hut, as with all Yum! Brands concepts, have a lifetime contract to sell Pepsi products. While Pizza Hut was owned by Pepsi, all three of Pizza Hut's major competitors--Domino's Pizza, Papa John's Pizza, and Little Caesars--all sold Coca-Cola products. However, since Pepsi's divestment of its restaurant business, both Papa John's (in 2012)[10] and Little Caesars (in 2007)[11] later switched to Pepsi products themselves. Pizza Hut developed a pizza for use as space food, which was delivered to the International Space Station in 2001.[12] It was vacuum sealed and about 6 inches (15 cm) in diameter to fit in the Station's oven.[12] It was launched on a Soyuz and successfully eaten by Yuri Usachov in orbit.[13] In 2012, Pizza Hut released its own brand of perfume.[14] Advertising

Pizza Hut Pepper & Salt Pizza Hut's very first ad was "Putt Putt to the Pizza Hut". It starts with a man apparently ordering take-out and driving his 1965 Mustang JR to Pizza Hut, while some of the townspeople start chasing him. He picks up his pizza and goes to his house, when all of the people who were chasing him start eating all the pizza except the man who ordered it. Frustrated, he calls Pizza Hut again. Until early 2007, Pizza Hut's main advertising slogan was "Gather 'round the good stuff", and was "Now You're Eating!" from 2008 to 2009. From 2009 to 2012, the advertising slogan was "Your Favorites. Your Pizza Hut." The advertising slogan is currently "Make it great," an updated version of the original "Makin' it great" slogan that was used from 1987 to 1993. Pizza Hut does not have an official international mascot, but at one time, there were commercials in the United States called 'The Pizza Head Show.' These commercials ran from 1993 to 1997 and were based loosely on the Mr. Bill shorts from Saturday Night Live in the 1970s. The ads featured a slice of pizza with a face made out of toppings called 'Pizza Head'. In the 1970s Pizza Hut used the signature red roof with a jolly man named "Pizza Hut Pete". Pete was on the bags, cups, balloons and hand puppets for the kids. In Australia during the Mid to late 1990s, the advertising mascot was a delivery boy named Dougie, with boyish good looks who, upon delivering pizza to his father, would hear the catchphrase "Here's a tip: be good to your mother". Adding to the impact of these advertisements, the role of Dougie was played by famous Australian soap opera and police drama actor Diarmid Heidenreich. Pizza Hut sponsored the 1989 film Back to the Future Part II, and offered a free pair of futuristic sunglasses, known as "Solar Shades", with the purchase of Pizza Hut pizza. Pizza Hut also engaged in product placement within the film itself, having a futuristic version of their logo with their trademarked red hut printed on the side of a mylar dehydrated pizza wrapper in the McFly family dinner scene, and appear on a storefront in Hill Valley in the year 2015.[15] The 1990 NES game Teenage Mutant Ninja Turtles II: The Arcade Game, came with a coupon for a free pizza. The game was filled with Pizza Hut advertising (the first ever console video game with product placement) and pizza that would refill the character's life.


In 1994, Donald Trump and ex-wife Ivana Trump starred in a commercial. The ending of the commercial showed Ivana Trump asking for the last slice, to which Donald replied, "Actually dear, you're only entitled to half", a play on the couple's recent divorce. In 1995, Ringo Starr starred in a Pizza Hut commercial which also featured The Monkees. Rush Limbaugh also starred in a Pizza Hut commercial the same year, where he boasts that "nobody is more right than me," yet he states that for the first time he will do something wrong, which was to participate in Pizza Hut's then "eating pizza crust first" campaign regarding their stuffed crust pizzas. Talk show host Jonathan Ross, co-starred in an ad with American model, Caprice Bourret. They were used to advertise the stuffed crust pizza, with Jonathan Ross saying "Stuffed Cwust", to which is a play on Jonathan's pronunciation of 'R's. Another UK ad shows British Formula One driver Damon Hill visit a Pizza Hut restaurant and order a pizza, with famous F1 commentator Murray Walker visiting with him, and narrating as though it was a Formula One race. As Hill is about to finish his meal, Walker, in a play on Hill's 1994 & 1995 seasons where he was runner up in the Formula One World Championship both won by Michael Schumacher, shouts "And Hill finishes second, again!" at which Hill grabs Walker by his shirt and shakes him angrily, Walker proclaiming, in his usual tones, "He's lost it! He's out of control!" Following England's defeat to Germany on penalties in the semi-finals of Euro 96, Gareth Southgate, Stuart Pearce and Chris Waddle featured in an advert. The advert shows Southgate wearing a paper bag over his head in shame as he was the one, who missed the crucial penalty against the Germans. Waddle and Pearce, who both missed penalty kicks in Italia 90 are ridiculing him, emphasising the word 'miss' at every opportunity. After Southgate finishes his pizza he takes off his paper bag, heads for the door and bangs his head against the wall. Pearce responds with, "this time he's hit the post". In 1997, former Soviet Union Premier Mikhail Gorbachev starred in a Pizza Hut commercial to raise money for the Perestroyka Archives. In recent years, Pizza Hut has had various celebrity spokespeople, including Jessica Simpson, the Muppets, and Damon Hill and Murray Walker. Recent commercials have Queen Latifah providing the voiceover. Also in 1997, Pizza Hut, reunited "greatest of all time boxer" Muhammad Ali with trainer Angelo Dundee in a sentimental made for Super Bowl commercial. In 1999, the game Crazy Taxi for Sega Dreamcast featured Pizza Hut as one of the locations that players were able to drive to and drop off customers. However, in the 2010 re-release of the game for Xbox Live and PlayStation Network, all of the product placement, including the Pizza Hut locations were removed.[16] Pizza Hut paid for their logo to appear on a Russian Proton rocket in 2000, which launched the Russian Zvezda module.[17] January 2003 saw Pizza Hut's Advert's Slogan Called "Eat. Laugh. Share." the Commercials are Created By Head Gear Animation as of January 2007 the New Commercial we called The "4 For All" At The End of the "Excitement" Commercial. Hew Open and Closes the Pizza Hut Box to reveal an Underwater while saying "Se puede tener un Pizza Pan" The Subtitles with the words "Can you Have a Pan Pizza" in it Early 2007 saw Pizza Hut move into several more interactive ways of marketing to the consumer. Utilizing mobile phone SMS technology and their MyHut ordering site, they aired several television commercials (commencing just before the Super Bowl)

containing hidden words that viewers could type into their phones to receive coupons. Other innovative efforts included their "MySpace Ted" campaign, which took advantage of the popularity of social networking, and the burgeoning user-submission marketing movement via their Vice President of Pizza contest. As of October 2009, Pizza Hut is advertising its WingStreet brand on a nationwide basis, having met its internal requirement of 80% of stores having the product available. Pasta Hut

Pasta Hut logo (2008present) On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer pasta items on their menu. The email (and similar advertising on the company's website) stated "Pasta so good, we changed our name to Pasta Hut!" [18] The name change was a publicity stunt held in conjunction with April Fools' Day, extending through the month of April, with the company's Dallas headquarters changing its exterior logo to Pasta Hut.[19] This name change was also used to promote the new Tuscani Pasta line and new Pizza Hut dine-in menu. The first Pasta Hut advertisement has the original Pizza Hut restaurant being imploded, and recreated with a sign saying "Pasta Hut" placed on the building. United Kingdom

Pizza Hut in Stratford-upon-Avon, Warwickshire

New Pizza Hut logo used in Southeast Asia, Europe, and newer Canadian locations

Countries with Pizza Hut restaurants In the United Kingdom, Pizza Hut announced it would be changing its name to Pasta Hut in October 2008, six months after the US 'April Fool' trial. [20] It was described as a temporary name change to reflect the chain's new emphasis on healthier foods.[20] On January 19, 2009, the company announced that following an online poll where 81% of

voters chose to keep the Pizza Hut name the Pasta Hut trial had ended and all stores converted to Pasta Hut would revert to their original name.[21] Costa Rica In Costa Rica, aside from the Pizza Hut restaurants, there is another brand called "PHD - Pizza Delivered Hot by Pizza Hut." This brand is only for food courts at malls and for express delivery. This was created to compete on the "fast food" market while restaurants will concentrate in casual food. Nicaragua In Nicaragua, aside from the Pizza Hut restaurants, there is another brand called "PHD Pizza Hut Delivery." This brand is for deliveries. There are various Pizza Hut Delivery stores which are equipped with 10-20 motorcycles per store to fulfill the demand. All of the stores are in Managua. Southeast Asia In Southeast Asia, aside from Pizza Hut restaurants, there is a subsidiary brand called "PHD - Pizza Hut Delivery by Pizza Hut," only for food courts at malls and for express delivery. Pizza varieties are changed to suit local tastes; pasta products with similarly Asian tastes are also sold in Indonesia. In Singapore, Pizza Hut have sold a baked rice dish called Curry Zazzle.[22][23] Sponsorship In the early 1990s, as part of PepsiCo's sponsorship of The NewsHour with Jim Lehrer (and its former moniker, The MacNeil/Lehrer NewsHour), Pizza Hut was included in the acknowledgment alongside Taco Bell and KFC, which PepsiCo owned at the time. In 2000, Pizza Hut was a part-time sponsor of Galaxy Motorsports' #75 Ford in the then NASCAR Winston Cup Series, driven by Wally Dallenbach Jr. Pizza Hut was the shirt sponsor of English football club Fulham F.C. for the 200102 season. Terry Labonte drove selected events with Pizza Hut as the primary sponsor of his #44 car in 2005. Pizza Hut purchased the naming rights to Major League Soccer club FC Dallas' stadium, Pizza Hut Park, prior to its opening in 2005. These were allowed to expire in January 2012. In March 2007, Pizza Hut partnered with Verizon Wireless to offer a free LG mobile phone with the purchase of a Cheesy Bites Pizza. Pizza Hut is a sponsor of the Newcastle Vipers ice hockey team for the 2007/08 EIHL season in the UK. Pizza Hut is a sponsor of Children's Joy Foundation In The Philippines. Pizza Hut Japan sponsored the anime Code Geass: Lelouch of the Rebellion, with their mascot, Cheese-kun, making cameos throughout the series. Book It!

Pizza delivery moped in Hong Kong Pizza Hut has been a sponsor of the Book It! reading incentive program since it started in 1985.[24] Students who read books according to the goal set by the classroom teacher, in any given month from October through March, are rewarded with a Pizza

Hut certificate good for one free, one-topping Personal Pan Pizza; and the classroom whose students read the most books is rewarded with a pizza party sponsored by Pizza Hut. The program has been criticized by some psychologists on the grounds that it may lead to overjustification and reduce children's intrinsic interest in reading.[25] However, a study of the program found that participation in the program neither increased nor decreased reading motivation.[25] The program's 25th anniversary was in 2009. The Book It! program in Australia ceased in 2002 when Pizza Hut in Australia was removing its dine-in stores as Australians opt for take away pizza instead of dine-in. Nutrition This section requires expansion. (January 2010) In the UK, Pizza Hut was criticised in 2007 for the high salt content of its meals, some of which were found to contain more than twice the daily recommended amount of salt for an adult. The meats that consumers demand for pizza toppings (pepperoni, sausage, bacon, etc.) are, likewise, salty and fatty meats.[26] To meet the Food Standards Agency 2010 target for salt levels in foods, between 2008 and 2010 the company removed over 15% of salt across its menu. [27]


Domino's Pizza is an American restaurant chain and international franchise pizza delivery corporation headquartered in Ann Arbor Township, Michigan, United States, near Ann Arbor, Michigan.[1][2] Founded in 1960, Domino's is the second-largest pizza chain in the United States (after Pizza Hut)[3] and has more than 10,000 corporate and franchised stores[4] in 70 countries[5] and all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public in 2004. Early years Tom Monaghan and his brother, James, purchased DomiNick's,[6] a small pizza store in Ypsilanti, Michigan, near Eastern Michigan University. The deal was secured by a US$75 down payment and the brothers borrowed $500 to pay for the store. [7] Eight months later, James traded his half of the business to Tom for a used Volkswagen Beetle.[7] As sole owner of the company, Monaghan renamed the business Domino's Pizza, Inc. in 1965. In 1967, the first Domino's Pizza franchise store opened in Ypsilanti, Mich.[7] The company logo was originally planned to add a new dot with the addition of every new store, but this idea quickly faded as Domino's experienced rapid growth. The three dots represent the stores that were open at the time (1969).[8] By 1978, the franchise opened its 200th store.[9][10] In 1975, Domino's faced a lawsuit by Amstar Corporation, maker of Domino Sugar, alleging trademark infringement and unfair competition. On May 2, 1980, a federal appeals court found in favor of Domino's Pizza International expansion

Domino's Outlet in India.


On May 12, 1983, Domino's opened its first international store, in Winnipeg, Manitoba, Canada.[12] That same year, Domino's opened its 1,000th store overall. In 1985, they opened their first store in the United Kingdom in Luton [13] Also in 1985, Domino opened their first store in Tokyo, Japan. By 1995 Domino's had 1,000 international locations. In 1997, Domino's opened its 1,500th international location, opening seven stores in one day across five continents.[9] Within the last five years, Domino's has also expanded to India with numerous locations, of at least 1,000.[14] Sale of company In 1998, after 38 years of ownership, Domino's Pizza founder Tom Monaghan announced his retirement, sold 93 percent of the company to Bain Capital, Inc. for about $1 billion and ceased being involved in day-to-day operations of the company.[15] A year later, the company named David A. Brandon Chairman and Chief Executive Officer.[16] Current era

The exterior of a Domino's Pizza store in Spring Hill, Florida. In 2004, after 44 years as a privately held company, Domino's began trading common stock on the New York Stock Exchange under the ticker symbol "DPZ".[17] Industry trade publication Pizza Today magazine named Domino's Pizza "Chain of the Year" in 2003,[18] 2010,[19] and 2011.[20] In a simultaneous celebration in 2006, Domino's opened its 5,000th U.S. store in Huntley, Illinois, and its 3,000th international store in Panama City, making 8,000 total stores for the system. [21] Also that year, the Domino's Pizza store in Tallaght, Dublin, Ireland, became the first in Domino's history to hit a turnover of $3 million (2.35 million) per ye ar.[22] As of September 2006, it has 8,238 stores which totaled US$1.4 billion in gross income.[23] In 2007, Domino's introduced its Veterans, Delivering the Dream franchising programs and also rolled out its online and mobile ordering sites. [10] In 2008, Domino's introduced the Pizza Tracker, an online application that allows customers to view the status of their order in a simulated "real time" progress bar.[24] In addition, the first Domino's with a dining room opened in Stephenville, Texas, giving the customers the option to either eat in or take their pizza home. Since 2005, the voice of Domino's Pizza's US phone ordering service 1-800-DOMINOS has been Kevin Railsback.[25]

In a 2009 survey of consumer taste preferences among national chains by Brand Keys, Domino's was last tied with Chuck E. Cheese's. In December that year, Domino's announced plans to entirely reinvent its pizza. It began a self-flogging ad campaign in which consumers were filmed criticizing the pizza's quality and chefs were shown developing the new product.[26][27] The new pizza was introduced that same month, and the following year, Domino's 50th anniversary, the company acquired J. Patrick Doyle as its new CEO and experienced a historic 14.3% quarterly gain. While admitted not to endure, the success was described by Doyle as one of the largest quarterly same-store sales jumps ever recorded by a major fast-food chain.[28][29] Products

Domino's Pizza (Malaysia), Chicken Pepperoni, New York Crust.

A makeline at a Domino's The current Domino's menu features a variety of Italian-American entrees and side dishes. Pizza is the primary focus, with traditional, specialty and custom pizzas available in a variety of crust styles and toppings. In 2011, Domino's launched Artisan style pizzas that offer a base blend of rich flavors to complement chef inspired toppings.


Additional entrees include pasta, bread bowls and oven-baked sandwiches. The menu offers chicken side dishes, breadsticks, as well as beverages and desserts.[30] From its founding until the early 1990s, the menu at Domino's Pizza was kept simple relative to other fast food restaurants, to ensure efficiency of delivery.[31] Historically, Domino's menu consisted solely of one pizza in two sizes (12-inch and 16-inch), 11 toppings, and Coca-Cola as the only soft drink option.[32] The first menu expansion occurred in 1989, with the debut of Domino's deep dish, or pan pizza. Its introduction followed market research showing that 40% of American pizza customers preferred thick crusts. The new product launch cost approximately $25 million, of which $15 million was spent on new sheet metal pans with perforated bottoms.[33] Domino's started testing extra-large size pizzas in early 1993, starting with the 30-slice, yard-long "The Dominator".[34] Domino's tapped into a market trend toward bite-size foods with spicy Buffalo Chicken Kickers, as an alternative to Buffalo Wings, in August 2002. The breaded, baked, whitemeat fillets, similar to chicken tenders,[35] are packaged in a custom-designed box with two types of sauce to "heat up" and "cool down" the chicken.[36] In August 2003, Domino's announced its first new pizza since January 2000, the Philly Cheese Steak Pizza. The product launch also marked the beginning of a partnership with the National Cattlemen's Beef Association, whose beef Check-Off logo appeared in related advertising.[37] Domino's continued its move toward specialty pizzas in 2006, with the introduction of its "Brooklyn Style Pizza", featuring a thinner crust, cornmeal baked in to add crispness, and larger slices that could be folded in the style of traditional New York-style pizza.[38] In 2008, Domino's once again branched out into non-pizza fare, offering oven-baked sandwiches in four styles, intended to compete with Subway's toasted submarine sandwiches. Early marketing for the sandwiches made varied references to its competition, such as offering free sandwiches to customers named "Jared," a reference to Subway's spokesman of the same name.[39] The company introduced its American Legends line of specialty pizzas in 2009, featuring 40% more cheese than the company's regular pizzas, along with a greater variety of toppings.[40] That same year, Domino's began selling its BreadBowl Pasta entree, a lightly seasoned bread bowl baked with pasta inside, [41] and Lava Crunch Cake dessert, composed of a crunchy chocolate shell filled with warm fudge. Domino's promoted the item by flying in 1,000 cakes to deliver at Hoffstadt Bluffs Visitor Center near Mount St Helens.[42] In 2010, shortly after the company's 50th anniversary, Domino's changed its pizza recipe "from the crust up",[43] making significant changes in the dough, sauce and cheese used in their pizzas. Their advertising campaign admitted to earlier problems with the public perception of Domino's product due to issues of taste.[44][45]

After a stock low in late 2009, the company's stock had grown 233 percent by late 2011. Even as the economy has suffered and unemployment has risen, Domino's has seen its sales rise dramatically through its efforts to rebrand and retool its pizza. [46] Domino's serves Coca-Cola products, and as of January 2012 is the only "Big Four" pizza chain to do so. Rivals Papa John's Pizza and Little Caesars sold Coca-Cola in the past (Pizza Hut, due to its previous ownership by PepsiCo, has a lifetime contract to sell Pepsi products), but both switched to Pepsi in 2012 and 2007, respectively. Domino's Pizza in Mexico switched to Pepsi in November 2012. In September 2012, Domino's announced it was going to roll out pan pizza on September 24, 2012.[47] It should be noted that following this move, Deep Dish was discontinued after 23 years of being on the menu. Corporate governance

Headquarters of Domino's Domino's management is led by J. Patrick Doyle, CEO from March 2010, formerly president of Domino's USA. Previous chief executive David Brandon, made athletic director of the University of Michigan in January 2010, remains chairman.[48] Among 11 executive vice presidents are Michael Lawton, CFO; Asi Sheikh, Team USA; Scott Hinshaw, Franchise Operations and Development; and Kenneth Rollin, General Counsel.[49] Domino's operations are overseen by a board of directors led by Brandon. Other members of the board are Andrew Balson, Diana Cantor, Mark Nunnelly, Robert Rosenberg and Bud Hamilton.[50] Charitable activities In 2001, Domino's launched a two-year national partnership with the Make-A-Wish Foundation of America. That same year, the company stores in New York City and Washington D.C. provided more than 12,000 pizzas to relief workers following the September 11 attacks on the World Trade Center and The Pentagon. Through a matching funds program, the corporation donated $350,000 to the American Red Cross' disaster relief effort.[9] In 2004, Domino's began its current partnership with St. Jude

Children's Research Hospital, participating in the hospital's "Thanks and Giving" campaign since it began in 2004, raising more than $1.3 million in 2006. [51] Advertising and sponsorship

Arie Luyendyk's Lola-Chevrolet which won the 1990 Indianapolis 500 for Doug Shierson Racing. In the 1980s, Domino's Pizza was well known for its advertisements featuring The Noid. That concept was created by Group 243 Inc. who then hired Will Vinton Studios to produce the television commercials that they created. The catchphrase associated with the commercials was "Avoid the Noid." Due to a glitch on the Domino's website, the company gave away nearly 11,000 free medium pizzas in March 2009. The company had planned the campaign for December 2008 but dropped the idea and never promoted it. The code was never deactivated though and resulted in the free giveaway of the pizzas across the United States after someone discovered the promotion on the website by typing in the word "bailout" as the promotion code and then shared it with others on the Internet. Domino's deactivated the code on the morning of March 31, 2009 and promised to reimburse store owners for the pizzas.[52] Domino's sponsored CART's Doug Shierson Racing, which was driven by Arie Luyendyk, and the team won the 1990 Indianapolis 500. In 2003, Domino's teamed up with NASCAR for a multi-year partnership to become the "Official Pizza of NASCAR."[53] Domino's also sponsored Michael Waltrip Racing and driver David Reutimann during the 2007 season in the NASCAR Sprint Cup Series. Domino's Pizza was seen in the final scene of the 1985 film The Goonies. The character of Lawrence "Chunk" Cohen exclaims it is his favorite after his mother brings him one on the beach after escaping the pirate cave. Domino's Pizza sponsored The Super Mario Bros. Super Show! in 1989, and was briefly seen in the 1990 film Teenage Mutant Ninja Turtles. Furthermore, from 1998 to 2008 the company provided funding for the American cartoon sitcom The Simpsons.[54]


30-minute guarantee Starting in 1973, Domino's Pizza had a guarantee that customers would receive their pizzas within 30 minutes of placing an order, or they would receive the pizzas free. The guarantee was reduced to $3 off in the mid 1980s. In 1992, the company settled a lawsuit brought by the family of an Indiana woman who had been killed by a Domino's delivery driver, paying the family $2.8 million. In another 1993 lawsuit, brought by a woman who was injured when a Domino's delivery driver ran a red light and collided with her vehicle, the woman was awarded nearly $80 million, but accepted a payout of $15 million.[55] The guarantee was dropped that same year because of the "public perception of reckless driving and irresponsibility", according to Monaghan.[55] In December 2007, Domino's introduced a new slogan, "You Got 30 Minutes", alluding to the earlier pledge but stopping short of promising delivery in a half hour. [56] The company continues to offer "30 minute or Free" guarantee for orders placed in its stores situated in Colombia, India[citation needed], Malaysia*, Vietnam, Mexico, Singapore* and Turkey. *A "Free Regular Pizza Voucher" is given in these markets instead if later than 30 minutes.[57][58] International operations

Map showing Domino's Pizza's global locations. Domino's Pizza has locations in more than 60 countries.[59][60] In most cases, Domino's has master franchise agreements with one company per country, but three companies have acquired multiple master franchise agreements, covering a number of countries:

The rights to own, operate and franchise branches of the chain in Australia, New Zealand, France, Belgium, the Netherlands and Monaco are currently owned by Australian Domino's Pizza Enterprises, having bought the master franchises from the parent company in 1993 (Australian and New Zealand) and 2006. The master franchises for the UK and Ireland were purchased in 1993 by the British publicly listed Domino's Pizza Group, [61] which in 2011 also acquired the

master franchise for Germany,[62] and in August 2012 the company also added Switzerland, Liechtenstein and Luxembourg by buying the Swiss master franchise holder, with an option to acquire the Austrian master franchise as well.

The master franchises for India, Nepal, Sri Lanka and Bangaladesh are currently owned by the Indian company Jubilant FoodWorks.

Mission and Vision The Mission

Maintaining high standards of the international chain of pizza delivery in Mexico and provide the experience of an excellent product with excellent customer service. Exceptional People serving the best pizza in the world. Sell more pizza. Have more fun.

The Vision

To be the best operator Domino's Pizza system with the best talent. Number one in pizza. Number one in people.



Treat people as youd like to be treated. Produce the best for less. Measure, manage and share whats important. Think big and grow. Incentivise what you want to change. Set the bar high, train, never stop learning. Promote from within. We are not ordinary, we are exceptional.

Employees Distributor Salary previously as (every 15days). Your payment is with target.8 hours and hours a day of rest, (but after you get your 8 hours to wash the dishes, mop or whatever you send the manager). You have to wash the bike all the time. They do not charge the pizza if you're late, but I scol d you are the one out of the oven and the pizza must be cut. There are times when you just gather orders leave like 5 minutes to get home from the store.


Pizzas preparer Care for expiration dates. Learn to make a pizza in Learning you a lot of code.




Telephonist learning to use computers have good customer relations your work area clean clean roomclean toilets to program their codes

Manager Is the person responsible for seeing that in a production process of the pizza meets the objectives and the production plan providing solutions to problems presented as soon as possible by ensuring that employees comply and commit to their duties.

This data has been taken from secondary source of information. Secondary Data is data or information that is already available. This data is collected by a person or organization other than the use of the data.


Advantages of secondary data : it is cheap and inexpensive. It is easily accessible. It is already available. It saves time and efforts.. It avoids data collection problems and it provides a basis for comparison.

This data is collected from various sources: Books, Magazines, websites, Already published reports, ,Journals and publications, Research papers etc.

Analysis & Interpretation

Domino's and Pizza Hut, the two big US fast food chains entered India in 1996. Each claimed it had the original recipe as the Italians first wrote it and was trying desperately

to create brand loyalty. Domino's and Pizza Hut - tried to grab as large a slice of the pizza pie as possible. While Pizza Hut relied on its USP of "dining experience", Domino's USP was a 30-minutedelivery frame. To penetrate the market, both the players redefined their recipes to suit the Indian tastes. Domino's went a step ahead by differentiating regions and applying the taste-factor accordingly. Domino's also made ordering simpler through a single toll-free number throughout the country. Dominos and Pizza Hut expanded their market ever since they entered India .Pizza Hut is the world's largest casual dining restaurant chain with over 13,000 restaurants across 97 countries and 143 stores across 34 cities in India., including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune , and Chandigarh and Yum! is in the process of opening Pizza Hut restaurant sat many more locations to service a larger customer base across the country. Today Domino's Pizza India has grown into a countrywide network of more than 300 stores with a team of over 9,000 people. According to the India Retail Report 2009, Dominos were the largest Pizza chain in India and the fastest growing multinational fast food chain between 2006-2007 and 2008-2009 in terms of number of stores

Market shares and major players

Indian taste buds are demanding more and pizza industry one of the most intensive industry is all gearing on. People across the country are consuming over three million pizzas a month currently, and the monthly sales figures are projected to double in the next four years. According to industry data, of the total branded quick service restaurant market make a sale of over Rs1,200 Crore, the pizza chains contribute around 50 per cent of the sales i.e. worth Rs. 600 Crore.The major players of the Pizza industry are:Pizza Hut Dominos Smoking joes Garcias Papa johns Us pizza Market share as on 1999



Threat of new entrants

With the economic reforms and liberalization, many new entrants also want the revenue of the200 billion Indian fast food industries.

There are many new entrants in the branded pizza industry some of them are
Papa johns pizza Us pizza

Some Indian brands are: Pizza Express Pizza Corner

Slice of Italy They have captured a lot of customers with their new style and discount offers. Mu c h y o u n g crowd flock their restaurants and their taste buds are getting modified. Now the new entrants are also likely to enter the small cities and make their presence. Thus pizza hut and dominos have to rethink their strategies so as to retain their customers. They have to constantly differentiate their services from the newer entrants

There are lots of substitutes which are available to choose with respect to the fast food industry some of them are McDonalds Barista Cafe coffee day Chinese restaurants (main land china) Other restaurants Largely it depends upon the customers what they want to have. Generally it is assumed that when people dine outside, they think of having pizza at least 25% of time. Thus if the brand recall of a particular company is good, more people will tend to go there. Higher the quality of food, service, higher will be product recall and sales

Buyers bargaining power


Pizza hut and dominos have higher market reach and greater visibility in the market with respect to the pizza industry and hence they command supplies at lower rate. However their counterparts, competitors cannot command such lower prices. Thus the muscle power of pizza hut and dominos is way beyond the others.

Suppliers growing bargaining power

Supplies till now were not a problem but with the advent of the rising food costs (raw material inflation). Suppliers are not ready to supply items at the normal rate. Thus suppliers muscle power grew only doe to inflation. Thus the company either has to increase the menu costs or reduce the operational costs to recover. Failing to do this will make the company into losses or to lose out in the industry.

Trends in the Indian market

Marketing to children Fast food outlets in India target childrens as their major customers. They introduce varieties of things that will attract the childrens attention and by targeting childrens they automatically target their parents because childrens are always accompanied by their parents. Low level customer commitment Because of the large number of food retail outlets and also because of the tendency of customer to switch from one product to other, this industry faces low level customer commitment. Attracting different segments of the market Fast food outlets are introducing varieties of products in order to cater the demands of each and every segment of the market. They are introducing all categories of product so that people of all age, sex, class, income group etc can come and become a customer of their food line Competitors of the Pizza Hut and Dominos Pizza corner McDonalds Barista Cafe coffee Day

Subway Papa johns KFC


STP Analysis

Pizza hut
Region- pizza hut outlet its in different countries is a way of segmenting the ir market according to region and finding out potential markets. City- they also segment the cities as classic lassie, metros, small towns

Annual income below 10yrs , 10 to 18yrs ,18 to 25yrs , 25 to 40yrs Family income middle class , upper class , high class

Pizza hut
In geographic segment they targeted countries where there were no pizza hut outlets. Initially opened in class i cities and then have now moved to metros.

In demographic segment their main target is the young adults ranging from 25 years to40 years and also dual income earners family. They aim basically at the upper middleclass and the high class income families. In psychographic segmentation they targeted a1, a2, b1 socio-economic classes. In behavioral segmentation they targeted for occasions such as birthday bashes, corporate lunches. It was also found that they were targeting the first time users because they felt that their quality and taste would automatically make them a loyal customer.


In geographic segment they targeted countries where there were no dominos outlets. Initially opened in class ii cities and then have now moved to class i, metros and smaller towns. In demographic segment their main target is the teenagers and college students (13 to21years), young adults ranging from 21 years to 35 years. They aim basically at the middle class, upper middle class income families. In psychographic segmentation they targeted a2, b1, b2 socio-economic classes. In behavioral segmentation it was found that they were targeting the first time users and also their regular users.

Points of difference
The major point of difference between pizza hut and dominos is that pizza hut concentrates onion-restaurant dining. The ambience and decor of all pizza hut outlets are good and the outlets are spacious. When customers think of party and decide to have pizza, pizza hut only comes into their mind. Pizza hut also arranges kitty parties, birthday parties and business meetings in their outlets. Pizza hut has customized birthday party invites with different themes for the customers to choose and use it as invitations. Dominos aims at fast home delivery of pizza. Whenever customers want to have pizza at home, they think of calling dominos and ordering for it because they are experts in home delivery of pizza. We earn 60% of our revenue from home delivery of pizzas and 40% from the restaurant sales , says Mr.navamani, manager of dominos, coimbatorev.o.c. Park outlet. In case of pizza hut, the major revenue is from restaurant sales.

Points of parity
Category points of parity the main food item that is sold in pizza hut and dominos is pizza. As we all know, pizza comes under the fast food category of foods, both the companies must be good in speed of making and service. Irrespective of the cost, both pizza hut and dominos has to deliver or serve pizza in less time as compared to other main course food items served in other restaurants.

Competitive points of parity

competitive points of parity in case of pizza hut is that, even though pizza hut is costlier than dominos, they have their own customers, who do not bother about spending, but look for quality and personalized service. When we visit pizza hut, they have restaurant hostess who will assign us tables and introduce the steward who will be taking care of us. This is generally a procedure that is followed in five star category hotels and pizza hut is also following it to emphasize on service quality. In case of dominos, they are not costly as pizza hut and do not offer great ambience to customers, but offer good pizzas at nominal price. They concentrate on turnover of covers and cater to customers who dont have time to spend on food and just stop over for refreshment. Moreover, dominos mainly looks into home delivery of pizzas and are experts in it.

Overall both the companies achieve what they want to as for Dominos they have achieved in positioning themselves as the fastest serving pizza outlet and quenching the hunger. Pizza Hut has come to become synonymous with the best pizzas under one roof. They have positioned themselves for their unique dining experience. Thus from the market feedback, it can be seen that even customers feel the same as what the company wants them to.

Strategic Formulation
Overall Cost Leadership, Differentiation and Focus
This is achieved very effectively by Dominos as they do not intend to lose their focus from delivering pizzas at home Dominos Brand thus relates mainly to service & delivery neither they promote their in dining experience nor they spend revenue for it. Domino's vision is focused on Exceptional people on a mission to be the best pizza delivery company in the world!

Thus Dominos are able to provide good pizzas at relatively lower rate as they dont spend much for the restaurant


Pizza Huts Premium price

Pizza Hut is committed for providing uncompromising product quality, offering customers the highest value for money and giving service that is warm, friendly and

Personal They stress heavily on the dining experience and the ambience

Thus at each point company charges a premium Thus Pizzas from Pizza Hut costs a premium hence their customers also changes to high income groups

Creation, Communication and Capturing Value

Domino's Pizza constantly strives to develop products that suit the tastes of its consumers and hence delighting them. Domino's believes strongly in the strategy of Think global and act local. Thus, time and again Domino's Pizza has been innovating with delicious new products such as crusts, toppings and flavors suitable to the taste buds of Indian Consumers. Further, providing value for money at affordable products to the consumers has been Dominos motto. Initiatives such as Fun Meal and Pizza Mania have been extremely popular with consumers. The Brand Positioning of Khushiyon ki Home Delivery (Happiness Home delivered) is the emotional benefit Dominos offer to consumers. Delicacies that do not rip wallets have always got the crowd coming back to the Dominos although its ambience is not up to that of its competitors. They have the maximum offers with respect to the discounts they offer throughout the year. Thus the customer has the maximum incentive to come back to Dominos. Hungry Kya?, promotion where hunger gets quelled in less than 30 minutes was a great value proposition . All other activities, be it new variants, great service, timely deliveries or more for the same price the effort of Dominos has always been directed towards making its customers happy, creating, communicating and delivering value.

Pizza Hut
Workforce of Pizza Hut is chosen with the mottoTogether we grow with primary concern being quality of service, be it in terms of delivery or quality of pizzas. A critical factor in

Pizza Huts success has been a menu that has constantly evolved and expanded to cater to the changing needs and specific preferences of customers in different parts of the world. In having understood the pulse of the customers in India, Pizza Hut has clearly established itself as a brand with an Indian heart. Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a 100% vegetarian restaurant in India in Surat and later in Ahmadabad and Chow patty, where it offers a Jain menu sans all rootbasedingredients. Moreover Pizza Hut is not just a hangout zone for youngsters. It organizes birthday bashes, kitty parties and corporate lunches They also have a variety of combinations of menu items which a customer can choose so that both the customer and the company can have a win-win situation. The company can have the maximum of the consumer surplus at the same time the consumer might feel that this was the best offer. From the menu card one can see the family size variants and the different pizza combinations in the same one pizza are all the different ways of pricing. The company attains the maximum profit in the meat items, so they give the selection of pizzas slices of different varieties and they are clubbed together to form a single pizza. Once the customer dines/ orders @ home, normally discount coupons are given to the customer so that there is an incentive for the customer to order from pizza hut. Thus customers are forced to maintain loyalty towards pizza hut


SWOT Analysis of Pizza Hut n SWOT Analysis of Dominos

Pizza hut
Good Quality Food(Hygiene) Brand Name Food worth its Price Good Service Weaknesses

Que during Peak Hour They advertise very less Fewer Outlets

Low Calorie Pizzas in their menu Faster delivery The company can come up with innovative Pizzas, new flavors and recipes

Competitors like Dominos The rising prices of special ingredients like cheese, used in pizzas


Leading pizza delivery company in the U.S. Online accessibility, order locator Over 5,000 stores located in all 50 states Strong brand awareness, supported by heavy advertising & marketing campaigns Promised half hour delivery time Affordable menu & frequent recession specials

Slow growing & declining store sales Low popularity due to public perception Carry out only restaurants

Growing presence in emerging markets Allow a dine in choice to consumers. Image re Building with new campaign Creating a nice with cheap family dining


Changing consumer habit towards healthier food choices Heavy competition from authentic pizzerias If other pizza chains reinvent/ market a new recipe


4ps of dominos and pizza hut

Pizza hut

Worldwide and in India, Pizza Hut has come to become synonymous with the best pizzas under one roof. This is because at Pizza Hut the belief is that

every pizza has its own magic, thus making it a destination product whicheveryone seeks. A critical factor in Pizza Huts success has been its unique dining experience. Pizza hut product line can be divided into:Sides: pasta and rolls Pizzas Appetizers & BeverageDessert

Pizza Hut has successfully used the high/lowpricing strategy when setting the retail price of its products Pan Pizzas start at just Rs 65, which is probablyamong the lowest in the world.

The ambience is vibrant and casual whichappeals to young people. The seats, couches are comfortable to sit. Nice music is being played in the background.

Last but not the least THE BELL the pizza huttradition to say thank you when you ring the bell.







- Currently the 2nd largest pizza chain in the United States, following after Pizza Hut. - Although Pizza Hut is the world's largest pizza chain by sales, Domino's actually delivers the most pizzas to homes and holds the title of the world's largest pizza delivery Secondary Research Cont. - They currently have nearly 9,000 corporate and franchised stores in 60 international markets, and all 50 U.S states.

- In 2009 Dominos teamed up with NASCAR for a multi year partnership to become the Official Pizza of NASCAR - Later that year, Dominos made some major changes to its menu, including the addition of oven baked sandwiches, bread bowl pasta dishes and chocolate desert cakes. - Also, they introduced the Pizza Tracker, an online application that allows customers to view the status of their order. In 2010 they made noteworthy changes in the dough, sauce and

cheese used in the production of their pizzas



Pizza Hut first time in its history introduced a customer satisfaction hotline. Managers with weekly feedback from their customers pizza hut hoped the feedback would strengthen operations within the control of each restaurantmanager. They offer variety of local dishes according todemand and liking of customers for loyalty purpose.


A Gap Model defines the various gaps or wrong understanding or lack of sufficient knowledge within the Company. Due to these Gaps the company may face huge loses and thus low market share. In Pizza Hut, the objective of the management is to demolish all the gaps on the surface of the company. In order to deal with the Gaps of Pizza Hut, we conclude on two major Gaps on hand. GAP 1: The gap between customer expectations and Management perception of customers expectations. This gap arises whenever they have peak hours, that is, during day & night and at weekends. At this time the waiting time for the food to come is quite big. Generally a single pizza took 7 minutes to get prepared but at peak hours the service provider took 3 times more than the usual time. Hence this is the case of what time customer expected for his meal to be ready and what the management thought of time to prepare the meal. GAP 4: The gap between Service delivery and external communication to customers.Thisgap arises when the services are not provided as promised. That is, for example, in their advertisement they talk of Pizza in just Rs.199 but the actual cost of that pizza is more than199 after including VAT and other taxes. Therefore, what Pizza Hut is promised to their customers are not providing to them which leads to the formation of this Gap.




Environmental Factors impacting Pizza Hut and Dominos Pizza . Running a business is a difficult task for the management team, as well as, the owners. The managers and owners must face the challenges and the risks involved in managing a business, especially if it spans internationally. Pizza is one of the most popular foods in the world. Almost every people in this world, at some point in their lives, have tasted Pizza. Pizza 29 marginalized the social status of the people, from class A to E individuals eat Pizza. Therefore, the demand for the food is high and businesses catering to this market have emerged over the past years. Some of the most popular Pizza parlors in the world today are the Pizza Hut and Dominos Pizza. Pizza Hut and Dominos Pizza continues to flourish in the business, adding more chains in every part of this world. The external environment plays an important role in the sector of business. PEST Analysis is a method utilized in order to examine, identify and assess the external forces that have a huge impact in the performance of an organization. In addition, the PEST Analysis is used to aid an organization to obtain a better comprehension of the broader environment in the sector of business and can be used in carrying out the continuous process of environmental analysis. PEST stands for Political, Economic, Social, and Technological Factors. Political Factors The policies and actions of the government wherein Pizza hut or Dominos Pizza is located, whether national or local affects how the business is being conducted. The political and legal conditions that could affect the business of Pizza Hut and Dominos Pizza are the policies of the local and national government towards business, if the government is more open in the establishment of numerous Pizza Hut restaurants, then more restaurants will be established. On the other hands, if the policies do not protect the business then fewer restaurants will be established. Another factor is the regulation of the business and the environment. If the business environment is not friendly with the company, then there is a possibility that neither Pizza Hut nor Dominos Pizza will not open a restaurant and instead move to a more business-friendly government.

Economic Factors This part is concerned on the overall perspective of the economy. The macro economy of a nation has a huge impact on the business such as Pizza Hut or Dominos Pizza. Factors in the economy include the gross domestic product, the unemployment and inflation rates, the foreign trade deficit and surplus. If the overall economy of a country is not favourable, lesser 30 people will franchise Pizza Hut or Dominos Pizza because they will most likely loss a great amount of money instead obtaining profits. Adapting To Economic Environment in India Pizza Hut In 1991 under the guidance of a visionary Narasimha Rao and his comrade Manmohan Singh India marched towards a new era of liberalisation, privatisation and globalisation. Trade barriers were eased and cultural barriers started dissolving. It was at this juncture that Pizza Hut made its infant steps in India, with its first outlet at Bangalore. Pizza Hut has 150 restaurants across 35 cities in India including metros. With its focus steadily on quality and variety, Pizza Hut has given a new dimension to regular pizza eatouts. However the trifle higher prices may remain a concern for middle class Indians with lesser purchasing power and disposable income. The status is steadily improving as more of us embrace fast foods to suit the pace of our life. Dominos Pizza Dominos made their entry in India in 1996 when the country was marching into an era of liberalisation, privatisation and globalisation. These years marked the start of some of the greatest socio economic and cultural changes in our country. Dominos focuses on value to customers and offers pizzas and Italian delicacies at affordable prices to middle class Indian consumers. Dominos has 298 outlets in 65 cities across 20 states. This is

the largest in terms of fast food restaurants. Thus they have adapted to Indian economy in terms of purchasing power and disposable income of middle class Indians. Social Factors It is the most difficult from the four factors because the attitudes and beliefs of people are difficult to quantify. Aside from the attitudes and beliefs, demographic factors such as population and life expectancy are also important aspects in the analysis of the social factors. The influence of the values and beliefs affects the business of Pizza Hut and Dominos Pizza. For example in India beef or pork is not served in the Pizza. The changing trends in the taste of the consumers also play an important role in the external analysis of the environment. If the current trend in the society is being health conscious, thus consumers will demand that the foods be healthy. Across Socio-Cultural Barriers Pizza Hut Food has no language. Good food is appreciated across the globe. Pizza Hut has outlets around the world. It has taken immense effort to cater to its customers all over the world. Dominos Pizza Dominos outlets are prevalent in every small-big town across the world. Dominos has taken cues from changing preferences of its customers and put together a tantalising menu that attracts foodies around the globe. Technological Factors The fast changes in technology nowadays have far-reaching effects in the businesses. The factors that have a huge impact are the research and development, internet and ecommerce, and new technologies. The research and development has effects on the business of Pizza Hut and Dominos Pizza because through R&D new products are

developed for the business, the internet and e-commerce also contributes to the technological factors because through them customers can give feedback regarding the products of Pizza Hut and Dominos Pizza which can also aid in the research and development, and the service of the company. Embracing Technology in India Pizza Hut Locating stores and placing orders is made easier for Pizza Hut loyalist. With their virtual store kind website, Pizza Hut offers customers a wide range of options to choose from menu and avail new offers. Now orders can also be placed through mobile phones. High end technologies are used at the cash counters. Dominos Pizza At Dominos Pizza, online sales accounted for over 70 percent of its total sales in 2008. Hence, Dominos plans to further exploit the increasing potential of the online medium as one of the promotional and distributional channels in the downturn. They do a number of different activities online to increase sales.


Dominos and Pizza Hut are both fierce competitors in the contemporary cultured pizza market. Both have been competing on the same niche market that has same market demographic characteristics and hence comparison between the two is based on a leveled ground. Today, many people take their pizzas more seriously to an extent that they would rather die queuing for their favorite fast food. For lovers of Pizza, it is either Dominos or Pizza Hut, and if not, none. This is an expression on the way in which both companies have been able to craft a market niche for their products. Comparing between the two, Pizza Hut remains favorite in due to its product quality and pricing.

Dominos Pizza, Inc. is a pizza delivery company located in Ann Arbor, Michigan, United States. The company was founded in 1990 and it is ranked as the second largest pizza chain in the United States (Dominos). Currently, the company has a franchise of more than 9,000 corporate and franchised stores, which are located in more than 60 international markets (Dominos). The company operates in all 50 states in the United States (Dominos). Dominos Pizza was sold in 1998 and the company went public in 2004. The company menu mainly features pizza, pasta, over-baked sandwiches, wings, boneless chicken, salads, and others.

Pizza Hut, Inc. is a leading American restaurant chain that offers different kinds of pizzas. The company was founded in 1958 by two brothers, Dan and Frank Carney, in Wichita, Kansas (Pizza Hut). With an initial capital of $600, the company opened the first Pizza parlor in the region that has grown to the restaurant giant it is today (Pizza Hut). The company also sells side dishes like pasta, Buffalo wings, breadsticks, garlic


bread, and many others. Pizza Hut is based in Addison, Texas but it is currently in the process or relocating to Legacy Office Park in Plano. It is a subsidiary of Yum! Brands, Inc., which is the largest worlds restaurant company operating in more than 34,001 restaurant and delivery centers in more than 100 countries (Pizza Hut). Pizza Hut has different restaurant formats. Pizza Hut Express and The Hut are the main locations for fast foods including pizza (Pizza Hut). These two offers limited menu products.

The starting point for this comparison would be on the product itself. Starting with the crust or the base, both companies have good quality standards. Dominos has pleasant standard crusts, with wheat flavor to it and it tends to have soft, doughy side. However, this depends with customer preferences. There are people who prefer doughier crust while others may find not appetizing at all. On the other hand, Pizza Hut has pretty much same standards but it tends to be crispier compared to Dominos. Pizza Hut pizzas can sometimes have burned edges. This means that there is a difference in pizza baking process between the two pizza makers. Most probably, Dominos pizzas are baked for shorter times or at lower temperatures while Pizza Hut bakes for longer or at higher temperatures (Dominos). Dominos soft crust is usually less greasy compared to Pizza Hut. However, both companies offer plenty of crust options from where one can choose depending on individual taste. Whether one is looking for deep dish, hand tossed, or crispy, they both offer a wide range bases that one can use to build the pie upon. Comparing topping of the pizzas, both Dominos and Pizza Huts sauces are standard tomato sauce. Neither of them is sweet or bitter and they have the correct amount of spice and seasoning.


Another important factor of comparison between the two would be on cost. Considering the fierce competition between the two pizza kings, their pricing strategy is mainly geared towards ensuring that they align their products to this competition. One of the featured pricing for both companies is that they tailor their price to the season. They give deals that come with different prices. For example, Pizza Hut has great value deals from $6 when one buys two pizzas (Pizza Hut). A large pizza with three toppings goes for $10 while cheesy bite pizza goes for $11.99 (Pizza Hut). Pizza Hut also sees 2 liter and breadsticks for $5.00. In the same way, Dominos also offers different deals (Pizza Hut). It offers carryout lunch deal for $5 that comes with two toppings (Dominos). On pricing strategy, it therefore appears that Pizza Hut has different pricing strategies that are meant to attract customers.

Both Dominos and Pizza Hut depends largely on online ordering and therefore the speed of delivery is very important. When considering delivery of ordered pizzas, both Domino and Pizza Hut have an average delivery rate. It is difficult to point out which is better than the other, although Pizza Hut is likely to get better compared to Dominos due to their large size of operation. Looking at internal concerns between the two companies, it is evident that they have antagonizing concerns in their delivery chain. Pizza Hut can produce but can it deliver in time? Dominos can deliver, but does it delivery quality pizzas? These are tow set of questions that define the improvement of delivery mechanism between the two. Dominos prides in crafting a delivery chain that ensure that the pizza reaches the customer within a maximum of 30 minutes from the time of the order (Bailey). It is evident that when it comes to comparing speed of


delivery, Pizza Hut has a lot of do to catch up with Dominos but at the same time, Dominos has a lot to do to catch up with Pizza Hut in terms of quality.

Another important point of comparison between the two companies would be in political and charitable affiliations. Both companies take corporate social responsibility seriously. However, Dominos seems to have cut an edge when it comes to charitable affiliation. On its order form, Dominos has a Help fight childhood cancer section that calls for donations to fight childhood cancers. Customers can donate $1, $2, $5, and $10 (Dominos). The company encourages customers to make donation and gives Free Chocolate Lava Crunch Cakes with a $10 donation. In addition, the found of Dominos, Tom Monaghan has been actively involved in charity work pledging more than $451 to charity (Dominos). Morgan has become of the largest funder of non-profit organizations, political action committees and others which means his principles has guided the organization to be actively involved politics and charitable works. Pizza Hut has also been involved in charitable work through Pizza Hut Fundraiser. It has two kinds of fundraisers. One fundraiser is pizza hut discounts car offering that mainly offers two-forone deals on more than twenty pizzas. The other fundraiser is Pizza Night that is mainly associated with group at local branches. About 20% of earnings from total revenues in this kind are committed to charity (Pizza Hut).


Loyalty Program Gives Pizza Hut Better Slice of the Pie ATLANTA -- Pizza Hut Inc. is getting a bigger piece of the pizza market, thanks to a loyalty program it began two years ago.

The fee-based program called VIP: Very Into Pizza has increased the company's incremental orders by 93 percent from members over a matched control and raised incremental net sales 65 percent. The program was discussed at a session at DMA05 here yesterday.

Pizza Hut, Dallas, a subsidiary of Yum Brands Inc., launched the loyalty program because customers were switching among Pizza Hut, Dominos and Papa John's looking for quality product, service and value.

"With sales deterioration category-wide, Pizza Hut realized it had to retain and reward its best customers," said Nagwa Pfingston, vice president and account director at Dallas-based Hawkeye/FFWD, the agency Pizza Hut worked with to start the program. At the time of the program's launch, Pfingston worked for Pizza Hut.

Pizza Hut knew that even a small shift in share among better customers generates large incremental profits, Pfingston said.

The company did research to prepare the program. Pfingston said that Pizza Hut looked at other loyalty programs in the space, "but we had yet to find one that was compelling to customers and also cost-effective."

The company gathered insight to identify customer behavior patterns. It interviewed Pizza Hut customers, reviewed existing research, built an analytic data mart based upon 5 million customers and performed a customer potential analysis. The company was in a unique position to gather customer data because, unlike its competitors, a large majority of its customers order via phone or online, so the company had customer data to work with.

From these learnings, Pizza Hut segmented customers into three groups: best customers, customers with potential to become best customers, and customers who switch often versus those who simply have low frequency. The company tested loyalty programs targeting these customers in three markets but received the best results from the fee-based program.

The program costs $14.99 yearly to join, and members get their first large pizza free. Other benefits include receiving a free pizza during the month when spending amounts are reached, free breadsticks and cinnamon sticks every month, and relevant coupons mailed to members monthly based on past behaviors.

To communicate the program, Pizza Hut uses direct mail, e-mail, Web sites and in-store promotions. Before the launch, it also developed call center training guides, quick reference guides and Web-based customer enrollment tools. It acquired and installed call center equipment and developed its database to manage customer targeting, order taking and reward fulfillment.

The company monitors the program weekly and studies customer behavior changes.

Pizza Hut's program is a success for both its best customers and other customers as well.

"While VIP grew our best customers by 300 percent, there was a 65 percent increase in spending across all of our segments as a result of the program," said Kira Lewis, manager, loyalty and data insights at Pizza Hut.

The program is evolving, Lewis said. This year Pizza Hut launched new creative, and it is testing different offers.

The fee is a key component. Paul Bowman, managing director, direct and loyalty marketing at Hawkeye/FFWD, said that Pizza Hut initially did not want a fee-based program.

"They thought, 'Why are we going to ask our best customers to pay to be in our program?' " he said. "But we explained to them that if customers pay, then they change their behavior."

Bowman also told the packed audience at the session three mistakes that many companies make when developing their first loyalty programs:

They design their program for average customers as opposed to best customers.


They choose a loyalty program model before researching loyalty drivers.

They do not create an opportunity loss for defection, such as alerting members that they lose points or miles if they leave the program. Dominos topped a recent poll which sought to discover which pizza brand had the highest level of customer loyalty. The survey was conducted by Brand Keys. The company say they set out with the aim of conducting a study which went beyond the usual figures and statistics, to get to the heart of a consumers emotional attachment to a brand. Closely following Dominos in the rundown of the pizza brands customers are most loyal to was another American company, Papa Johns, followed by Pizza Hut and Little Caesars, according to the study. Chief Executive of Dominos, J. Patrick Doyle welcomed the findings from the study. The Dominos boss said that although the pizza giant is always looking to attract new customers, they realise that customer retention is vital to the success of their brand, and so theyve made a conscious effort to develop brand loyalty over the course of the last few years by improving in store services and extending their menu. According to one franchise expert, Craig Slavin, brand loyalty is established from the ground up and stems from customers receiving a great service from frontline staff members such as pizza delivery drivers and customer service advisers. The survey aims to predict which brands will be a hit with consumers over the coming year, and so if the results are anything to go by, Dominos looks set to enjoy yet another bumper year with a further rise in profits.


here is no room for stragglers in the pizza kitchen. Every moment counts. The head of the delivery chain Domino's Pizza reckons split-second timing is the very essence of its remarkable success in catering for Britain's seemingly insatiable appetite for stay-athome comfort food. "The quicker you deliver a pizza, the quicker the customer comes back," Domino's UK and Ireland chief executive, Chris Moore, tells the Observer. "Our 'out of the oven' time has gone from 17 minutes in 2005 to 13 minutes in 2010. That creates a degree of customer loyalty our competitors find it hard to match." Moore, a genial character in a smart blue Ralph Lauren shirt bearing a Domino's logo, can afford a satisfied grin. A fixture on Britain's high streets for 26 years, Domino's has flourished financially in middle age to become an unlikely stock market star. The chain smashed forecasts this week with a 19.2% leap in annual sales to 485m. Its share price has jumped by 83% in 12 months, giving it a market capitalisation of nearly 1bn. Domino's biggest shareholder, the property magnate and Saracens rugby club chairman Nigel Wray, has seen his 11% stake surge in value to 105m. The recession has been good for pizza deliveries. Moore says some of his customers are trading down from meals out: "We've gained people who used to go out to restaurants. They might have gone somewhere like Pizza Express in the past where, if you go as a family, you might spend 70 or 80 with a bottle of wine." Less affluent customers, meanwhile, have been attracted by a successful nationwide "two for Tuesday" offer providing a pair of pizzas for the price of one. Bans on smoking in pubs and restaurants have been handy too: "People can do whatever they damn well want at home and it'll probably be considerably cheaper," says Moore. Domino's operates on an entrepreneurial basis. Its stores are operated by independent franchisees who pay a 5.5% royalty on their sales to Domino's UK head office, which hands on half of this money to the brand's ultimate owner in the US. Stores buy most of their food from a Domino's commissary in Milton Keynes although they're free to shop elsewhere if they choose. And they choose the pizzas they offer

from a central long-list. Towns heavy on vegetarians can offer more non-carnivorous options, and coastal areas can go big on seafood toppings. The nation's favourite Domino's pizza is a Pepperoni Passion, followed by the baconand-chicken Texas BBQ. The menu hasn't changed all that much over the years, Moore admits: "When I came up with the idea of a tandoori chicken pizza in 1990, the franchisees thought I'd grown three heads." The average branch makes an annual profit of 100,000. That's far more lucrative than, say, a typical pub, which might make 30,000 a year. Domino's has come a long way from the opening of its first British outlet, which was in Luton in 1985. "When we started, the delivery market was embryonic. Very few people got anything delivered to their homes. They'd just about got used to the idea that you could get a pint of milk or a bottle of Corona [the soft drink, not the beer] on your doorstep," says Moore. The public were initially sceptical about whether fresh food could truly be prepared and delivered within half an hour: "We had to convince people that it wasn't a frozen supermarket pizza that we'd bunged in a bag and delivered." Initially, almost all Domino's customers were under 35. They have stayed loyal over the years and been joined by a new generation; Domino's says its customer base now stretches from ages 18 to 55. Phone orders are gradually being replaced by those place on the internet and smartphones, which account for 36% of sales. "They're brilliantly marketing-led," says Hugh-Guy Lorriman, an analyst at stockbroker Seymour Pierce, who believes the chain's sponsorship deals with television shows such as The Simpsons and Britain's Got Talent have been shrewd initiatives. But Domino's isn't without critics. Back in 2007, the chain faced accusations of exploiting low-wage immigrant employees, appearing in a piece on the BBC's Newsnight that alleged staff were having money unlawfully docked from their pay packets. Moore disputes the details of the allegations but admits it was a "good kick up the arse", prompting Domino's to scrutinise its franchisees' employment practices far


more closely. He admits staff still don't get paid a lot: "They're paid the market rate, which is often the minimum wage." Domino's profits are forecast to jump from 29.9m in 2009 to about 38m in 2010. Moore reckons the chain has much further to go the average UK customer orders once every 35 days, compared to every 17 in the US. He wants to build the network to 1,200 outlets in Britain and Ireland. "It's still a very immature market," says Moore, who is fond of quoting the company's American founder, Tom Monaghan: "Up to 30 minutes, people are hungry. After 30 minutes, they're angry."


Faced with brand-eroding discounting in the category y, we asked ourselves what we could do to improve loyalty to Pizza Hut. We noted that while f riendship is based on loyalty, few loyalty schemes are housed within social networks. Our strategy was to reward our customers through Fa cebook with a gift for them plus one they could give away: even a modest loyalty reward has a whole lot more perceived value if you can give it to a friend. The act of giving is public: making it a loyalty s cheme and viral marketing campaign all in one. The creative solution was a Facebook App, Feed a Fr iend. It yielded $2.5m in sales, profitable redemption, greater loyalty and 1.5 million impress ions of free exposure off a development cost of just $55,000. Combining the natural fit of Facebook, the worlds largest social network, with the worlds most social food, Pizza Hut offered customers The First Facebook Gift You Can Eat. It allowed Pizza Hut to reward loyal customers, but with a public an d viral campaign that helped Pizza Hut reclaim the brand high ground of Social Food. Fast Company reports that Pizza Hut is making plans to launch a foursquare mayor special. Users who become the mayor of their local franchise will receive a free order of


breadsticks. Is a mayor special really the best way for companies like Pizza Hut to reward customer loyalty? Pizza Hut CMO Brian Niccol told Fast Company, I do think its right to reward your loyal customers, and provide an incentive for others to become more loyal. He hopes to see a bump in repeat traffic. According to Foursquare perspectives, Pizza Hut has fewer than 1,400 mayors worldwide (and many of the locations in that count are outside the US). Only one customer at each store will be rewarded for their loyalty. Other customers are left out of the deal completely, unless theyre able to take over the mayorship, which is usually difficult to do once the incumbent mayor is being rewarded. A more effective approach would be to offer a count based checkin special, offering a deal for every 5th or 10th checkin at a store. That is the kind of deal that encourages customers to visit your store more often, because they have a finite goal that can be reached no matter how often other customers check in. Additionally, foursquare must implement a way for chains like Pizza Hut to reward customers who visit different stores. Currently all specials are tied to a single location and only checkins at that specific store count toward any specials there. If a user regularly visits two different Pizza Huts, say one near home and one near the office, they would be considered a loyal Pizza Hut customer, but wouldnt receive any foursquare rewards because their checkins are split across two venues.



Pizza hut and Dominos have been successful in having leadership position in areas they are good at. Pizza Hut positions itself as a casual dining restaurant wherein best pizzas are available under one roof and it has been able to capture those customers who want to enjoy and celebrate their moments with their loved ones along with great food. On the other hand Dominos Pizza has always positioned itself as pizza delivery experts and they have been successful in having majority market share in home delivery segment. Further as competition is increasing in this industry they should focus on moving out of their comfort area and introduce new formats and strategies to retain their existing customers and attract new customers. Dominos Pizza has already proved itself in the home delivery segment now they should concentrate on the dine-in segment as well. Dominos should increase variety in their menu, focus on the location of their outlets; improve quality of pizzas with respect to competitors. Also, it is important to provide customers with good ambience with they visit Dominos outlet. Pizza Hut has always focused on making every customers visit a memorable one when they visit their outlets. Now Pizza Hut should also focus on other areas of service delivery. Pizza Hut should focus on home delivery as well as working womens have increased