Pizza Hut
Careers at Pizza Hut
MISSION
Pizza Hut seeks to offer customers around the world unique and high quality pizza and related food products quickly and efficiently, both at its restaurants and at home, and to ensure that its products are produced sustainably.
FOUNDING STORY
Pizza Hut was founded in 1958 by college students Frank and Dan Carney. The brothers initially borrowed USD 600 from their mother to open a small pizza restaurant in their hometown in Wichita, Kansas.
Their business was based on using fresh ingredients and baking pizzas fresh to order. After just six months, Frank and Dan Carney opened a second restaurant, and within a year, the pair had a total of six Pizza Hut restaurants.
Pizza Hut began franchising in 1959, which led to a period of significant expansion. By 1969, the Company had opened more than 300 restaurants across the US.
Pizza Hut has continued to expand its presence, both domestically and internationally.
The Company currently serves more than a million pizzas every day across more than 15,600 restaurants in 90 countries, including across the Americas, Asia Pacific, Europe, the Middle East, and Africa.
Over the years, it has also expanded its menu to include pasta, specialty pizzas, side dishes, and regional exclusive dishes.
Pizza Hut was acquired in November 1977 by PepsiCo. The Company now operates as a division of Yum Brands. It remains one of the largest pizza chains in the world.
In 2017, Pizza Hut was ranked 24th in a list of the world’s 200 most influential brands.
Business model of Pizza Hut
Customer Segments
Pizza Hut serves a large customer base around the world, principally comprising members of the general consumer population.
The company’s principal customers comprise:
- Individual Consumers, including consumers across a range of demographics and income levels who require convenient and quick food offerings;
- Groups and Families, comprising young families with children and larger groups of consumers across a wide range of ages and demographics; and
- Event Organisers, comprising consumers organising events for private occasions or businesses who require specific requirements for large groups of people.
Pizza Hut is headquartered in the US, but serves a global customer base. The Company operates restaurants or delivery services in more than 100 markets across the Americas, Asia Pacific, Europe, Africa, and the Middle East.
Value Propositions
Pizza Hut provides value to its customers in the following ways:
- Reputation and Brand – Pizza Hut is among the most well-known and most popular pizza brands in the world, with a reputation for providing high quality products and services to customers that dates back to its establishment in the late 1950s;
- Quality and Reliability – Pizza Hut is known for providing high quality pizzas, pasta dishes, and side dishes, as well as for developing unique and innovative offerings and region-specific pizza toppings, ensuring that it is able to serve the tastes of a large, international customer base;
- Affordability – Pizza Hut offers its products to consumers at affordable prices, ensuring that its products are available to consumers across a wide range of demographics around the world;
- Convenience and Accessibility – Pizza Hut seeks to serve its in-restaurant customers quickly and efficiently, and offers home delivery and online ordering services to customers to ensure that its offerings are accessible to customers at any time; and
- Sales and Marketing Reach – Pizza Hut operates an extensive network of restaurants, comprising more than 18,000 individual outlets across more than 100 countries and territories in the Americas, Asia Pacific, Europe, the Middle East, and Africa.
Channels
Pizza Hut primarily serves its customers via its network of more than 18,000 owned and franchised restaurants around the world.
This network spans markets across the Americas, Asia Pacific, Europe, the Middle East, and Africa. The Company’s restaurants are staffed by sales and service personnel who serve customers directly.
Pizza Hut also offers products to customers on a self-service basis through its regional online ordering portals.
Through these channels, customers are able to browse products, place orders, and schedule deliveries online. Deliveries are completed by Pizza Hut’s team of delivery drivers.
Customer Relationships
Pizza Hut seeks to secure recurring business from its customers by providing high quality products and an enjoyable dining experience.
The Company’s principal point of contact for its customers is its in-restaurant personnel, who are on hand to take orders, respond to queries and complaints, and offer advice on menu items.
Pizza Hut operates a membership and rewards program for its regular guests as a means of encouraging repeat business. Through this program the Company offers its frequent customers early access to news and updates, special offers, and special promotions.
The Company also offers a range of information to customers through its website, which can be accessed on a self-service basis.
Pizza Hut operates a website at www.pizzahut.com. It is additionally able to communicate directly with its customers through its various social media accounts, including with Facebook, Twitter, Instagram, and YouTube.
Key Activities
Pizza Hut is the largest pizza restaurant operator in the world, both in terms of its number of outlets and its percentage of market share.
The Company operates a network of more than 18,000 pizza outlets across more than 100 markets spanning the Americas, Asia Pacific, Europe, the Middle East, and Africa. In addition to its restaurant operations, the Company offers delivery services through its restaurants and regional online ordering platforms.
While Pizza Hut’s core menus items are pizzas, it also offers a wide range of pasta dishes, salads, and side dishes. Pizza Hut was founded in 1958 and is headquartered in the US. It operates as a unit of Yum Brands.
Key Partners
Pizza Hut works closely with a wide network of partner companies and organisations around the world to ensure that it is able to serve customers effectively.
These partners can be organised broadly into the following categories:
- Supplier and Vendor Partners, including suppliers of equipment, ingredients, and supplies that are used in the Company’s core restaurant operations, as well as providers of other third party services that support the Company’s corporate activities more broadly;
- Franchise Partners, comprising a range of independent business owners, food service companies, and individuals that operate Pizza Hut-branded restaurants around the world on the Company’s behalf;
- Delivery and Distribution Partners, comprising a range of logistics companies, distribution specialists, and delivery companies that support the Company’s storage and distribution activities, or its home delivery services;
- Marketing and Sponsorship Partners, comprising a range of commercial brands, sports teams, and other organisations with which the Company collaborates on joint sponsorship and marketing projects; and
- Strategic and Alliance Partners, comprising various other companies and organisations, with which the Company collaborates on other projects, including on business development, community support, and other projects.
In recent years, Pizza Hut has launched a number of partnerships. This includes a delivery partnership with FedEx, sponsorship partnerships with the National Football League and the National Collegiate Athletic Association, and a community partnership with World Hunger.
Key Resources
Pizza Hut’s business model depends on its ability to provide high quality products to customers quickly and efficiently.
Its key resources are its brand name and intellectual properties, its network of restaurants and franchise partners, its online ordering platforms and IT infrastructure, its supplies and supply chain, its network of partners, and its personnel.
Cost Structure
Pizza Hut incurs costs in relation to the procurement of ingredients and equipment, the operation of restaurants and outlets – including utility and occupancy costs, the management of its partnerships, the procurement of third party services, the implementation of marketing and sponsorship campaigns, the development and maintenance of its IT and communications infrastructure, and the payment of salaries and benefits to its personnel.
In 2018, Pizza hut recorded general and administrative costs totalling USD 197 million, franchise and property expenses of USD 45 million, and franchise advertising and other service expenses in the amount of USD 328 million.
Revenue Streams
Pizza hut generates revenue through the operation of restaurants and the sale of food and drinks.
The Company generates the bulk of its revenue in the form of sales fees collected directly from customers at point of sale, including sales across its network of restaurants and its via its online ordering platforms.
The Company also generates a portion of its revenue in the form of franchise and property revenues, generated under franchise agreements with third parties.
In 2018, Pizza Hut generated annual system sales of USD 12.21 billion and total revenue of USD 988 million, up on the respective USD 12.03 billion and USD 893 million recorded by the Company in 2017. The Company’s 2018 operating profit was USD 348 million.
Our team
info: Arthur Starrs (“Starrs”) has served as President of Pizza Hut US, Pizza Hut’s US business, since May 2016. He is responsible for overseeing the operations of the Pizza Hut brand in the US and for coordinating the business’s US executive team. He first joined Pizza Hut US in August 2013 as Vice President of Analysis and Financial Planning, following which he served consecutively as Chief Financial Officer and General Manager. Starrs began his career in 1998 investment banking firm Dresdner Kleinwort Wasserstein, where he rose to the position of associate over six years. In 2005, he was appointed Executive Vice President and Chief Financial Officer at Rave Cinemas, a role he held for more than eight years before joining Pizza Hut US in 2013.
info: Regina Borda (“Borda”) has served as Managing Director for Pizza Hut Europe and UK since March 2018. He is responsible for leading and implementing the Company’s overall strategy in Europe, the UK, and Canada. Borda first joined Pizza Hut in November 2014 as International Marketing Director, following which she served consecutively as Senior Director of International Marketing and Chief Brand officer for Latin America and the Caribbean. Borda began her career in 1999 as a marketing intern at FedEx, after which she joined The Hershey Company in 2000 as a brand manager. In 2003, Borda joined Yum Restaurants International, where she served consecutively as a marketing manager, senior marketing manager, and Marketing Director for the Caribbean, Germany, and the Netherlands respectively. Between 2010 and 2014, Borda served in several leadership roles at Taco Bell, including spells as Brand Marketing Director, Director of Operations, and Managing Director of the taco Bell Foundation.
info: Helen Vaid (“Vaid”) has served as Global Chief Customer Officer at Pizza Hut since September 2016. In this role, she is responsible for overseeing all systems and solutions that directly impact customer experience, including kitchen management systems, operations standards, food safety, and fleet management systems. Vaid began her career in the early 1990s, serving in international management roles at Harman Enterprises, Twinings, Shopsmart.com, and Sigel+Gale. In 2002, she was named Sales Director at Servecast Limited, a role she held for more than two years before joining Hewlett Packard in 2004. At Hewlett Packard, Vaid served consecutively as Managing Director for Snapfish EMEA, General Manager for Snapfish Americas, and General Manager for Snapfish WW and Web Platform. Prior to joining Pizza Hut, Vaid served in Vice President roles at Walmart eCommerce from 2013 to 2016.
