I.

INTRODUCTION The Company Pizza Hut International Pizza Hut was founded on June 15, 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. To be able to accommodate large amount of buyers and costumers,Pizza Hut is split into several different restaurant formats; the original familystyle dine-in locations; store front delivery and carry-out locations; and hybrid locations that offer carry-out, delivery, and dine-in options. Many full-size Pizza Hut locations offer lunch buffet, with "all-you-can-eat" pizza, salad, bread sticks, and a special pasta. Additionally, Pizza Hut also has a number of other business concepts that are different from the store type; Pizza Hut "Bistro" locations are "Red 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. 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.

 Pizza Hut Philippines Pizza Hut, home to the countrys Pinaka pizza, was started in 1958 by two enterprising college students, Frank & Dan Carney, in their hometown in Wichita, Kansas. Since then it has become the largest & most popular pizza chain with over 13,000 restaurants in 97 countries around the globe in 2012. Pizza Hut is now more than just a pizza place. It offers a unique casual dining experience that is different from the usual fast-food environment. The casual dining restaurant now has an expanded pizza menu, appetizers such as ribs and a new line of desserts, soup options, smoothies, a variety of pasta dishes and a whole lot more. Veering away from plastic and tiles typical of fast-food joints of old, Pizza Hut now has a very classy, casual-dining feel with sleek wooden furniture, warm, ambient lighting, and a touch of whimsy dominating the whole interior. With the new ambience come more customer interaction and service that is made doubly fast and extra friendly.Philippine Pizza Inc., the franchise owner and operator of Pizza Hut, has over 150 restaurants, here in the Philippines since it began in 1984. Its locations are strategically located from Ilocos Norte to Mindanao & are now the countrys most popular pizza restaurant, with its dine-in restaurants, delivery units and express counters. For the more discerning food enthusiast, theres Pizza Hut Bistro. A breakthrough concept in dining, Pizza Hut Bistro concept offers the best of casual dining, giving you the chance to enjoy the best ItalianAmerican, along with classy ambience and first class service. Market Offering 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. Pizza Hut has always been known for innovation. After all, it takes a lot of creativity to find a new place to insert mozzarella into a pie. Thats how the Stuffed Crust pizza was born. 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. 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.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).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.Instead of black, white, and red, Bistro locations feature a burgundy and tan motif. 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. Quick Product and Company History: Year 2007 2006 Thick n thin, Pizza Huts best of both offering is launched. -Whitbread sells their share of the joint venture to Yum! Brands Inc. Pizza Hut UK Ltd is now 100% owned by Yum! -Cheesy Bites is launched! 697 restaurants now in the UK! 154 stores are franchise owned by 61 franchisees. -The 4forALL is launched - The biggest new product launch in the history of Pizza Hut. -Over 600 restaurants now open in the UK. 70 of them are Franchise units Pizza Hut launch The Big New Yorker

2005

2004

Year 2003 2002 500 restaurants are now open throughout the UK, employing over 20,000 people. -Tricon Global becomes YUM! Brands Inc. The Quad Pizza is launched in the UK. -Pizza Hut opens its 500th restaurant. A & W and Long John Silvers join the Yum brand. Pizza Hut begins a franchising program with its delivery stores. Pizza Hut introduces The Edge, a thin pizza with toppings all the way round the edge Pizza Hut has over 400 restaurants, employing 14000 people. The Italian Pizza is launched in the UK Pan Pizza is relaunched as Grand Pan in the UK -PepsiCo decided to focus on their drinks business. As a result, Tricon Global Restaurants is born, creating the largest restaurant brand in the World. Tricon became the partner company with Whitbread. The Sicilian Pizza is launched in the UK. -There are 277 restaurants and 100 delivery stores in Stuffed Crust is launched in the UK 10,000 Pizza Huts are open world-wide There are 300 restaurants and delivery stores in the UK There are 9000 restaurants in 84 countries Pizza Hut reaches Russia. In the UK there are now 200 restaurants The first restaurant is converted into a Restaurant Based Delivery store The UKs first delivery unit opens in Kingsbury, London An average of one restaurant opened each week in the UK 100 restaurants in the UK and 5000 world wide

2001 2000 1999 1998 1997

1995 1994 1993 1992 1990 1989 1988 1987 1986

Year 1984 1982 1980 1977 1973 50 restaurants so far in the UK UK joint venture commences between PepsiCo and Whitbread Pan Pizza Introduced PepsiCo buys Pizza Hut Pizza Hut goes international with restaurants in Japan, Canada & England. The first UK Pizza Hut opens in Islington, London 1000 restaurants are open throughout the USA Frank and Dan Carney open the first Pizza Hut in Wichita, Kansas

1972 1958

II.ENVIRONMENTAL SCANNING Pizza Industry

The pizza industry here in the Philippines have really grown big. Originating from Italy, pizza pies have become a national dish, thanks to the power of advertising, marketing acumen, product endorsement, and what-have-you. Enterprising entrepreneurs have also come up with native pizza pies. The product is ideal for snacks or a full meal, washed down with a cool drink, mug of beer or a glass of wine.

Expanded Menus

Traditionally, pizza franchises have only offered pizza and closely related items like breadsticks and other Italian dishes to their customers. But in recent years, many pizza franchises have increased their menus diversity by launching new product lines to further compete with other lower-cost food chains in a bid to retain or gain customers. A favorite amongst a demographic similar to pizza eaters, chicken wings, is one of the foods that has found its way onto the menu of many pizzerias. For example, Pizza Hut, a company not afraid of making changes, introduced their latest permanent menu items in early 2011 boneless chicken and wings. The chicken fare, which was promoted in a grand manner very much like their reformulated pizza, joined Pizza Huts diverse menu that features pasta, oven-baked sandwiches, and desserts along with their trademark pizza. Salads have also proved to be popular amongst pizza franchises looking to expand their respective menus. Industry Players The major players in this scenario are Shakeys, Greenwich, Pizza Hut, Sbarro, Yellow Cab, and California Pizza Kitchen. Market share is hard to determine, for one company may say one thing, and another company something else. Greenwich, for one, claims it is leader of the pack. There seems to be no authoritative site (online) on the pizza industry, observes one source.Aggressive marketing and the number of ads may be a gauge. You see or hear these over the radio, TV and the print media, flyers, and even announcements in the LRT-MRT trains. Pizza Hut came after Shakeys and its oldest operating branch is in Manhattan, Kansas, near Kansas State University. It is a casual dine-in restaurant with popular small stands which sell two pieces of a pizza pie for P55.

Competitions & Competitive Assessment LOTS'A PIZZA has been spread all over Luzon and parts of Cebu with 169 branches through the strong SM Mall Branches, Puregold Branches and independent

franchises, and soon all over Visayas and Mindanao. What can't be liked in LOTS'A PIZZA? It's value for money, quality products with premium toppings at very affordable prices & true to it's slogan "Lots' of Toppings, Lots of Savings," it catered to the mass with it's affordable, palette friendly flavors and less oily and healthy par-baked crusts for the adults and kids. Try their signature Great Manhattan, 100% Pure Beef Special and Kid-Friendly Hawaiian. Pinoy pizza in taste but international in standards. Truly, one of the mainstays for Pinoys' Pizza craving. Pizza Hut may be the pizza of choice of Filipinos. Pizza Huts delivery service is good because they deliver on time and their hotline number is very easy to remember. Plus, it was Pizza Hut who popularized the stuffed crust idea, and from then on the flavor of the pizza wasnt our only dilemma: will it be cheesy pops, sausage pops, or cheesy volcano for you. Greenwich is really way in, thanks in part to the amount of starpower theyre using in their ads. But not only that: Greenwich pizzas just simply taste good. Grab a party square pizza to eat with your friends, and if youre not sure which flavor to order, try out their G4 pizza (4 different flavors in one). Remember their sisig pizza and their lechon pizza,which has a very Pinoy taste. Shakeys. Pinoys love the thin crust variant because of its crispiness. Dont miss out on their famous Managers Choice pizza. Shakeys also offer Angus Steakhouse pizza for meat lovers. And dont forget the ambience that Shakeys pizza parlors are loved for. Founded in 2001, Yellow Cab is a relatively young pizza chain, but it soon outgrew its competitors. Now, visions of giant 18 inch pizzas fit for any party (or for one very hungry person) come to mind whenever we think of Yellow Cab. Its most popular flavor would remain to be their Four Cheese pizza (mozzarella, cheddar, romano and feta), though they offer other flavors, most notably their Roasted Garlic and Shrimp and their Barbecue Chicken Pizza.

Sbarros may not hold that much mass appeal; its target market is mostly the middle to upper-class. However, its always considered a worthy treat to eat pizza at Sbarros. If youre on a budget you could always order pizza at Sbarros by the slice; youll likely to find one sumptious slice to be heavy enough to live on, at least for five hours. They have thin crust pizzas like the rest, and the also offer deep dish pizzas,spinach and mushroom pizza (for veggie lovers), and their white cheese pizza. Microenvironment The four major competitors, Pizza-Hut, Shakeys, Lots a Pizza and Greenwhich are the market leaders in the take-out pizza industry. Having a strong brand equity in the take-out pizza industry allows a company to gain a significant advantage in the market. Customers in the take-out pizza industry place a high value on the product quality and price of a company. Maintaining a good reputation is very important in this industry for companies because customers will build a relationship with the company and will keep on coming back or ordering from that company if they feel like they are getting a good deal. Even though the take-out pizza industry is very competitive, many investors will surely be looking for investment opportunities in the years to come due to the growth potential in the industry. Macroenvironment The demographic factors in the take-out pizza industry have provided new positive opportunities for companies in the industry. Economic factors can also influence the industry in a positive or negative way during a good or bad economy. Ecological factors such as rising prices in gas and rising prices on dairy products has hurt the industry. Technological factors are helping companies meet new customer needs and demands and are opening up new opportunities for companies all around the world. Political and legal factors have not had a tremendous recent impact on companies in the industry. Cultural factors that have affected the take-out pizza industry have been

primarily the increase in consciousness of health and fitness among the public in the Philippines. SWOT Analysis Strengths Pizza Hut is the market leader in providing different products of pizzas. They are ISO (International Standard Organization) certified. Another big strength and even a competitive advantage is that they have established their name through the years and because they have a lot of branches through out the country they have a full service restaurant as well as delivery services. Weaknesses Pizza Hut has higher overhead cost, due to the restaurant that other competitors don't have to deal with. As a result of higher overhead cost is higher prices that Pizza Hut must charge. Because of this Pizza Hut cant be considered as a low cost producer, so they rely on their quality pizza and good service to account for their higher prices. Opportunities New Markets can be explored and new opportunities can be gained. Pizza Hut can diversify their new products to increase market share. They can reduce their prices by looking for more resources.

Threats

The threats that they face today are the competitors that continue to improve their products like what they are doing. Other local competitors can affect their market share by offering pizzas with lower price.