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Pizza Hut

United States of America
Quick facts
Year business began:
1958
Franchising since:
1959
Estimated number of units:
15,605
Pizza Hut was founded when two brothers, Frank and Dan Carney, opened a pizzeria in Wichita, Kansas. The two students borrowed $600 from their mother to open the restaurant, and named it 'Pizza Hut' as the sign they bought fit 8 letters. It is now the largest pizza company in the world, with more than 15,605 restaurants in 120 countries. The brand is known for its innovation, being the first pizza company to deliver pizza to the White House, offer online pizza delivery ordering in 1994, launch Stuffed Crust Pizza in 1995 and send a pizza to space in 2001.

Franchise System

Globally, approximately 76% of Pizza Hut restaurants are run by franchisees. Their parent company, Yum! Brands, is one of the world’s largest franchisors. They provide a comprehensive franchise package and assist with sourcing a location, planning, store fit out, training and recruitment. Franchisees benefit from ongoing marketing from a global brand and constant product innovation.

Pizza Hut ran their first TV advertisement in 1966, entitled 'Putt Putt to the Pizza Hut', and it dramatically increased sales for the franchise. Over the years their advertising has included a number of advertising slogans such as "Gather 'round the good stuff' and "Make it great", sponsoring the Back to the Future Part II movie in 1989, product placement in the Teenage Mutant Ninja Turtles NES game in 1990 and numerous TV advertisements featuring Donald Trump, Ringo Starr and Rush Limbaugh.

Pizza Hut invests a huge amount of time and money into their training to ensure customers are always happy with the service they receive. Franchisees take part in a comprehensive in-store training programme, including recruitment, marketing and operations. Training lasts a number of weeks and is tailored to the franchisees previous experience and the role they plan to have in the business.

Corporate Social Responsibility

The Pizza Hut Harvest Programme

Pizza Hut recognise their hand to play in the food waste epidemic as a global business. They were the first company to create a national surplus food donation programme in 1992. Pizza Hut donate error pizzas, uncollected pizzas and leftover buffet items. Partner charities then distribute the food to families and people in need in the area. So far, Pizza Hut have donated over 94 million pounds of food. They say that Harvest feeds people, not landfills.

Environment

In the US, Pizza Hut is upgrading existing restaurants to improve their performance and environmental impact. The are installing new thermostats and replacing inefficient ovens to reduce their environmental impact. They have designed compact and efficient buildings of just 1,100 sq. feet for delivery focussed restaurants, reducing energy consumption and the amount of materials needed to build a store.

In the UK, Pizza Hut has a target of sending zero waste to landfills for company-owned restaurants. This would be achieved by sending 90% of waste generated to recycling centres and the remaining 10% sent to an energy recovery plant. In Scotland, company-owned restaurants have full waste separation in place. Services are being created to collect waste oil from restaurants with fryers to convert it into biodiesel.

In South Korea, company-owned Pizza Hut restaurants are now using energy efficient LED lighting both inside and outside. They also use high efficiency air conditioning. As a result of these changes, they have reduced annual energy consumption by 20 percent.

Nutrition

Pizza Hut offer over two billion different topping combinations of vegetables, fruits and lean meats. They offer Thin 'N Crispy pizzas with less cheese and lower-fat toppings that provide customers with the option of a pizza with 25% less fat. They also offer Skinny It Up Pizzas made with smarter portions. Gluten Free cheese and pepperoni pizzas are available
in select locations in the US. Pizza Hut have also developed pizzas with 50 percent whole wheat base, low fat cheese and reduced salt meat for children.

Financial Information

· Required investment: £249,300 - £1,800,493
· Capital Required: £294,000
· Upfront fee: £20,840

Sources
http://www.pizzahutfranchise.co.uk/
http://franchise.pizzahut.com/
http://blog.pizzahut.com/deliver-hope/harvest-program/
http://yumcsr.com/brands-overview/ph-page.asp

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