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Executive Summary

Overview: The restaurant is in a small, friendly town where there is a strong demand for new dining options. The restaurant is well-positioned to capitalize on a market need and serve families in the Ann Arbor area, bolstered by the demand for more family-friendly dining options, as well as the option of home delivery.

Ann Arbor’s population is rapidly growing, thanks to new developments and young families coming to the rural suburbs of the Hewgton area. Pizza Hut’s strategy is to seize the first-mover advantage and establish itself as the preferred pizza vendor in the area. We feel that, rather than a national chain franchise, a locally owned restaurant is the best option for supplying fresh, unique meals to the rapidly growing population.

This business plan forecasts an exciting and profitable start-up year, with future growth expected as we meet community demands. Overall, this plan represents a healthy firm with strong growth prospects that want to manage its expansion soon in a controlled manner.

Financials:

Financial Highlights:

 2019-20A2020-21A2021-2022F2022-23F2023-24F
Ratio Analysis     
Liquidity    
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.200.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Use of Funds: $75K

Industry Overview

Every year, six out of every ten customers visit Pizza Hut. Pizza fast food franchises are one of the fastest expanding industries in the United Kingdom and Ireland, with pizza gaining popularity as a favorite lunch among customers. Consumption patterns in USA are similar to those in the United States, the United Kingdom, and many other international regions. According to a recent BBC World poll, 45 percent of people in the UK feel that the taste of fast food is highly appealing. Experts with little time, students, single-person homes, and households with high or medium-income make up the Pizza Hut market.

Summary of Findings

In 1977, Pepsi Co, Inc. bought Pizza Hut, Inc. and gave it to Pepsi Co, Inc.’s smaller company, Tricon Global Restaurants (later renamed Yum! Brands). Yum! Brands has been named one of the world’s fifty most advanced businesses by Forbes, a distinction that extends to all of its brands. Pizza Hut, Inc.’s goal is to become a forward-thinking company that allows consumers to enjoy Pizza Hut, Inc.’s products while also allowing for an expanding client base.

Statement of Mission 

  • The mission statement of Pizza Hut Inc. serves as the driving force behind the decisions made by customers. 
  • “We take great pride in providing the perfect pizza and providing friendly and welcoming service on time, every time,” the agency’s mission statement reads. “I’ll be back!” every consumer exclaims.

Structure of the Company

  • Pizza Hut Inc. is, as previously said, a Yum! brand. Pizza Hut Inc., a company owned by Pepsi Co, Inc., employs key individuals such as:
  • Greg Creed is a musician from the United States. Yum! Brands Inc.’s CEO. Yum! Brands’ three core brands, Pizza Hut Inc., Taco Bell Inc., and KFC Inc., are Creed’s primary focus.
  • Gibbs, David. – Pizza Hut Inc.’s Chief Executive Officer The company’s main tasks include leading the company to increase sales and ensuring that the company functions properly.
  • Joe Kim is a writer who lives in the United Pizza Hut Inc.’s Chief Operating Officer Main responsibilities include ensuring that the business functions well on a daily basis and adjusting aspects within stores to increase sales.
  • Ramirez Mena, Enrique – Pizza Hut Inc.’s Chief Financial Officer The creation and balancing of the company’s budget, as well as ensuring the company’s profitability, are among the main tasks.

Target Market

The target markets and consumers are described in this section.

  • Asians: People are arriving from far-flung places as a result of globalization. One of our main objectives is to provide those goods to Asians. Asian people like spicy cuisine and a large percentage of the population is vegetarian or eats Halal. Globalization has brought people from all around the world. By providing Halal and vegetarian pizza, you will be able to increase your market share.
  • Students: Students are Pizza Hut’s target market since they spend a lot of time with their friends at universities, colleges, and universities, and they often go out.
  • Families with two working adults
  • Households with two working parents spend less time at home in the end.

Competitors

Domino’s Pizza

It is a fast-food pizza delivery company with a global presence. Domino’s is the most popular pizza chain in the United Kingdom and Ireland. In 1985, the first Domino’s store opened. Pizza Hut’s main rival is Domino’s pizza. Domino’s is known for its low pizza prices.

McDonald’s

McDonald’s is the world’s biggest fast-food business, with almost 47 million daily consumers. Burgers, cheeseburgers, hen products, French fries, breakfast dishes, soft beverages, milkshakes, and desserts are among McDonald’s most popular items. Salads, wraps, and fruit have all just been available.

KFC

KFC, or Kentucky Fried Chicken, is a fast-food restaurant brand headquartered in Louisville, Kentucky.

Yum Brands owns KFC. While the fried rooster is its main attraction, it is giving Pizza Hut a run for its money. KFC also offers roasted chicken items, sides, and desserts.

Takeaways and Quick Service Restaurants

The quick meals sector employs hundreds of local fast-food restaurants. These neighboring takeout provide pizzas, fried chicken, and salads that are tailored to the preferences of local customers and available at affordable pricing. Pizza Hut’s rivals are these establishments.

Among the biggest Fast Food businesses, McDonald’s has the largest team. It has a large firm cost as well as revenue, and Domino’s Pizza Inc is the lowest-earning team of them all, but they all have the same goal of providing quality pizza to consumers at a reasonable cost. To be competitive in the global marketplace, a company must develop innovative techniques and cost-cutting measures to stay ahead of the competition.

Marketing and Sales Planning

Mixtures of Marketing

The primary purpose of every firm is to increase profits and earnings.

Product

Uncompromising pressure in delivering those customers the best in terms of product quality, service, cleanliness, and value is one of the driving forces for Pizza Hut fulfillment over the globe.

Pizza Hut pizzas are produced with fresh dough cooked daily and topped with 100% pure imported Mozzarella cheese. Pizza may be a delicious addition to a well-rounded dinner. Combine pickles, mushrooms, combined peppers, and black olives are among the ingredients on our pizza (customers can add any other reachable topping of their choice). Pizza Hut has built a strong business reputation for providing high-quality goods and services.

Price

When determining the retail price of its goods, Pizza Hut profitably uses higher and lower valuing or pricing techniques. This price approach of extremes will enable the company to serve more market groups. Pizza Hut employs a price skimming strategy by setting high beginning pricing for its products as a signal to consumers that its products are the finest and the service is outstanding.

Place

Currently, direct distribution channels are being used. The marketplaces are massive and distributed around the globe. As a result, Pizza Hut’s direct distribution has a large number of customers. However, just a little quantity was bought by each.

Pizza Hut’s initial mode of distribution is via home delivery. Pizza Hut provides pizza for those who would rather stay at home and enjoy pizza. Aside from that, online ordering and distribution methods are used. Clients are treated to exceptional seating facilities. Customers may go to the local Pizza Hut and sit and dine there.

Promotion

The goal of merchandising is to make a product more responsive, which will increase demand and drastically alter client behavior in the short term. The tactics for a promotion that may be employed are listed below.

  • Television advertisement
  • To gain our consumers, we put up billboards in the key districts.
  • Distribution of leaflets at colleges and institutions
  • Leaflets are distributed door to door.
  • Promotions in-store and banner advertisements
  • Advertisement on the field of play for football or any other sport
  • E-mails
  • Publicity on the World Wide Web

People

Pizza Hut provides a fantastic and enjoyable working environment for its workers. Additionally, the people are easy to work with and adapt to changes. As a result, planning educational sessions for personnel will help them develop their talents in accordance with the venture.

Process

Pizza Hut will no longer make concessions in terms of quality and selection in its locations. The method will be up to date for any new projects as well. They have enough space for new products to be offered on a charge basis in venturing. We will bring the greatest meals, as well as environmentally responsible options, on time. As a result, regardless of the issue, methods will persist.

  1. Sources of Revenue

Concerns about money

Pizza Hut has the financial strength to launch a new product into the market. The commercial pricing range will be 5% of the estimated selling price. The cooperation is expected to increase sales by 6%; this prediction is based on previous Pizza Hut merchandise sales. There will be no additional plant and tool expenditures since the present plant and equipment may be utilized to produce the venture.

SWOT 

Strengths

  • A powerful brand name: Pizza Hut’s most valuable asset is its brand awareness. Pizza hut has a strong brand name and is a market leader since it offers a large variety of pizzas. Pizza hut’s strong image will make it simple to introduce new pizzas to the market.
  • Customers that are loyal to you: Customer loyalty is the lifeblood of Pizza Hut. The devoted customer will also help Pizza Hut introduce new pizzas to the market.
  • Good financial standing: Pizza Hut has a huge worldwide turnover, and its strong economic function will help with the economics of new pizzas.
  • Pizza is their specialty: Pizza Hut is a pizza expert, and clients will associate our new pickle pizza with this skill.
  • Yum! has a subsidiary. Brands, inc: Yum is the biggest restaurant corporation in the world, and Pizza Hut is a subsidiary of Yum.
  • Restaurants with full service
  • Pizza Hut provides a full-service restaurant as well as shipping services, which several of Pizza Hut’s competitors no longer do. Pizza Hut can appeal to additional sectors such as homes because of its restaurant facilities, which other pizza shops cannot.

Weaknesses

  • Expensive: Pizza Hut’s pizzas are exorbitantly priced. In comparison to the competition, this is Pizza Hut’s worst flaw in the market.
  • Increased overhead expenses: due to the restaurant options and supplementary services that other rivals no longer have to cope with, Pizza Hut has greater overhead expenses.
  • There are fewer outlets: Pizza Hut has the smallest number of locations, and customers have difficulty finding it. In comparison to other fast food businesses, the Pizza Hut franchises are not as widespread.
  • Focused more on western tastes: Pizza Hut focuses on western-style pizzas and ignores other styles. The newcomer will also assist in overcoming that shortcoming.

Opportunities

  • New pizzas in various sizes and flavors: this opportunity is constantly there for Pizza Hut to introduce new flavors and sizes, and to provide them better than the competition. With our new progressive pizzas, we can gain more revenue. Pickle pizza will assist us in making the most of this occasion.
  • Pizza that is halal: Pizza Hut has the possibility to provide Halal pizzas and enter a new phase that will increase the company’s market share.
  • Availability of outlets: Pizza Hut has the potential to grow its company, thus it must establish more locations to boost market share and compete with competitors such as McDonald’s.

Threats

  • Completion rate has improved: The competitiveness in the fast-food industry is growing every day, and this increased competition is lowering profit margins and causing a significant decrease in market share.
  • Competitors’ low pricing: For Pizza Hut, the competition’s prices are the most important factor. Customers benefit from reduced costs, while rivals have an aggressive edge over Pizza Hut.
  • Pizzas from the freezer:
  • McDonald’s
  • KFC
  • Takeaways and Quick Service Restaurants (QSR)

Environmental Analysis

Political

Regulatory and judicial concerns are examples of political issues that might have an impact on business. Because our target market is USA, there is no collection of political issues there. Increased taxes may have an impact on Pizza Hut in the future, but higher management will help the company overcome this issue.

Economical

Unemployment and retrenchment may also have an impact. The unemployment rate is considered to be high, and people’s savings are also considered to be poor. Because Pizza Hut’s pizzas are pricey, this economic downturn will also have an impact on them.

Social

Every country has its own set of social conventions, morals, and religion, all of which may have an impact on Pizza Hut depending on where it is located. People come from many backgrounds, each with their own faith and ideals. Especially the Asian community, which was previously underserved by Pizza Hut.

Technological

Because of modern research, there are so many different marketing strategies available, such as the internet, telemarketing text messages to present and potential consumers, and so on.

Conclusion

first-class meals accompanied with first-class service and seating settings. Pizza Hut offers a large selection of pizzas, as well as salads, muffins, and a variety of other items, all under one roof. Customers may also use the restaurant amenities at Pizza Hut. With the use of extensive market research, it has been discovered that Pizza Hut is losing a significant amount of market share by neglecting an unexpectedly growing market of Asian customers. These consumers are underserved by Pizza Hut, but now is the moment to address that need by partnering with other businesses that will assist Pizza Hut to attract Asian customers.

According to the business strategy, Pizza Hut can succeed in franchising since the company has a strong brand image and the financial resources to manage the firm.

According to the research done and the business plan prepared based on the Pizza Hut Inc project opportunity, fast food trends are shifting, and consumers are becoming more agitated.

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