P i z z a H u t , F - 7 B r a n c h , I s l a m a b a d

2012

FINAL REPORT Group Members

Hammad Akbar E08-141

Irej Mahmood E08-044

Junaid Hussain E08-047

Umer Farooq E08-116

Fayzan Hassan E08-039

QUALITY ANALYSIS ON PIZZA HUT

TABLE OF CONTENTS

ORGANIZATION INTRODUCTION .................................................................. 3

PIZZA HUT EMPLOYEE INVOLVEMENT AND RELATIONSHIP ............ 4

Introduction ............................................................................................................ 4

Motivation .............................................................................................................. 4

Employment Classifications .................................................................................. 4

Exempt Employees: ............................................................................................... 5

Part-Time: .............................................................................................................. 5

Temporary Employees: .......................................................................................... 5

Equal Opportunity .................................................................................................. 5

Employee’s Targets................................................................................................ 5

Wages and Salaries ................................................................................................ 5

Training and Educations ........................................................................................ 6

Employee Development Programs ........................................................................ 6

Training Topics ...................................................................................................... 6

Videos .................................................................................................................... 6

Performance Appraisals ......................................................................................... 6

Employees Rank .................................................................................................... 7

Awards ................................................................................................................... 7

Employee’s training ............................................................................................... 7

Employees Pays ..................................................................................................... 7

Job rotation ............................................................................................................. 7

Security .................................................................................................................. 8

Performance ........................................................................................................... 8

Employee empowerment ....................................................................................... 8

Quality cost ............................................................................................................ 8

CUSTOMER SATISFACTION ............................................................................. 9

Atmosphere that Attracts the Customer ................................................................. 9

Customer Complains Handling .............................................................................. 9

Staff that is Always Ready to Help ......................................................................10

Listening to Voice of Customer ...........................................................................10

Strengths ...............................................................................................................11

Weaknesses ..........................................................................................................11

Opportunities ........................................................................................................11

BENCHMARKING OF PIZZA HUT (Junaid Hussain) ...................................11

Performance Benchmarking .................................................................................11

Qualitative Benchmarking ...................................................................................12

Planning ...............................................................................................................12

Compare ...............................................................................................................12

Review..................................................................................................................12

Improvement ........................................................................................................13

A SURVEY ON PIZZA HUT DELIVERY PROCESSES .................................14

GROUP PHOTO TAKEN IN PIZZA HUT F-7 BRANCH ...............................16

QUESTIONAIRS ...................................................................................................17

ORGANIZATION INTRODUCTION

The legacy of Pizza Hut® began in 1958, when two college students from Wichita, Kansas,

Frank and Dan Carney; were approached by a family friend with the idea of opening a pizza

parlor. Although the concept was relatively new to many Americans at that time, the brothers

quickly saw the potential of this new enterprise.

After borrowing $600(US) from their mother; they purchased some second-hand equipment and

rented a small building on a busy intersection in their home town. The result of their

entrepreneurial efforts was the first Pizza Hut® restaurant, and the foundation for what would

become the largest and most successful pizza restaurant in the world.

Figure: Logo of Pizza Hut

Pizza Hut came to Pakistan on December 14, 1993 and took the culinary scene by surprise. Since

then Pizza Hut has set up 36 outlets all over the country, with plans of opening more in the near

future. Pizza Hut has set new standards of dine-in restaurants and quick delivery of oven-hot

pizzas, and can be considered as a pioneer in starting the trend of franchises in Pakistan. Pizza

Hut currently has a work force of approximately 2000 under its umbrella; making it the biggest

employer amongst all the restaurants.

Pizza Hut in Pakistan has seen tremendous growth in the past couple of years. During this time

period, the brand has contributed heavily towards the development of the society as a whole. It is

responsible for creating job opportunities for the youth of the country both directly as well as

indirectly.

Pizza Hut is one of the longest standing pizza companies around, and they continue to thrive.

They've expanded to countries all over the world, including Asia and the Middle East. QSR

Brands, currently with 211 Pizza Hut outlets in Malaysia and Singapore, will now open 20 new

outlets in the nation this year. It's absolutely amazing how international this food has become.

PIZZA HUT EMPLOYEE INVOLVEMENT AND RELATIONSHIP

Irej Mahmood Baig

Introduction

Employee involvement is probably the most effective approach to improving quality and

productivity. Employee involvement is regular participation of employees in, deciding how their

work is done, making suggestions for improvement, goal setting, planning, and monitoring of

their performance. Encouragement to employee involvement is based on the thinking that people

involved in a process know it best, and on the observation that involved employees are more

motivated to improve their performance [1].

Employee involvement is a system wherein employees are encouraged to use their expertise and

knowledge to suggest methods for improvements in their work areas. These suggestions could

important to improvements in the job, the product, the work atmosphere or the company as a

whole.

Motivation

Pizza Hut Uses Motivation as a Tool for Productivity, it maintains a well-trained workforce with

a good balance of young and energetic people and background. Pizza Hut’s strategy is to

motivated employees in a way to get the company’s overall objectives. Target setting and reward

is the part of motivation system. The motivation process is continuously going on daily base;

everyday they organize the ending ceremony at the end of the day and at this time they give the

award to the employee best performance award and best employee of the day by this they

motivate their employee to do well work in the pizza hut, along they also conduct the monthly

base program and annually also.

Internal incentive is given to the employees on the basis of their performance throughout the

year, month or weeks. Employees are also motivated by the following ways

By giving free food

Beverages

Bonus

Monthly certificates

Annually certificates

Cash, Profit sharing

Employment Classifications

There are three types are of employee in pizza hut

Exempt

Part-time

Temporary

Exempt Employees:

These are the employees whose job meets the state requirements for overtime exemption.

Exempt employees are compensated on a salary basis and are not eligible for overtime pay.

Part-Time:

Part-time employees are those who are regularly scheduled to do work.

Temporary Employees:

Temporary employees are those who are employed for short-term assignments. Short-term

assignments will generally be periods of three months or less.

Equal Opportunity

It is Company policy to provide equal opportunity to all employees. Personnel actions will be

taken without regard to race, creed, color, religion, gender. They recruit, hire, train, and promote

all persons without any discrimination. Core Values at Pizza hut for Employees are

Execute with positive energy

Recognize the achievement

Listen and more importantly, respond to the voice of the employee.

Think safety first.

Employee’s Targets

Management practices are usually fun and joyous for the employees; with the shifts and jobs

rotating and cross training. If an employee gets promoted he/she is likely to distribute candy

among co-workers as a token of celebration. Managers give targets to the employees and

motivate them to accomplish it with in specified time, according to his/her leadership styles.

(The employees however are not given any autonomy to experiment with the product ingredients

or recipes i.e. the product, without high level management’s approval).

The standard shift timings are 8-9 hours but it can fluctuate based on the circumstances (longer

or shorter). They have a tea and a lunch break (half an hour for both) during working hours.

Wages and Salaries Wages and salaries of any employees are increased may depending upon the following

Performance of an employee

Length of time in the position

Salary range limitations

Criteria set for the particular salary review

Training and Educations

At every stage of development, they'll be exposed to a series of on- and off-the-job training

modules that will ensure that their employees are ready to handle more and more responsibility.

There is a schedule of training and education of employee form the top level management. After

every six months there is proper training section from top management to all employees. Mostly

all training that given to employees are internally. There is no such training program in pizza hut

that they send their employees to other companies for training.

Employee Development Programs

There is a Set Training Programs organized every month. Any employee can volunteer to be a

part of this program to hone his/her management and restaurant skills. Management also applies

a counter-check on the procedures followed in the training program for fairness and equality of

procedures. Tests are organized every month for the management and the crew and everyone has

to pass them.

Training Topics

Instructions are provided for learning about a specific job responsibility or procedure. Most

common topics that are include in training are

Customer satisfactions

Employee behavior and attitudes

Time management

Maintenance of equipment

Basic leadership skills

Sanitation & Food Safety

Safety & Security

Videos

Videos demonstrate food preparation, safety, security and other important procedures are also

shown in training section.

Performance Appraisals

Pizza Hut conducts regular and formal performance appraisals on all employees, both hourly and

management. At the restaurant level, these evaluations occur once a year for management

personnel (unit and assistant managers), and every six months for Shift Managers and, hourly

crew members. The Area Manager is responsible for conducting the Unit Manager’s evaluation

which is also reviewed and approved by the general Manager.

Pay-for-Performance

In pizza hut employees are not only rewarded with cash, certificates etc. but their pay is also

increased based on their performance annually. Except the base pay, they establish competitive

wage and promotion programs, results are recognized and rewarded. Appreciation comes in

many forms, from a simple encouragement for a job well done, to restaurant-wide recognition

through programs such as the Employee of the Month. In addition, they also establish an internal

incentive pay system and provide employees with the opportunity to earn competitive total

compensation when performance meets and exceeds goals.

Employees Rank

Q: How do you rank your employees and what keeps them motivated?

Employees are ranked according to their qualification, performance, and on seniority basis.

General Manager, Manager and assistant Manager are highly qualified. To motivate them

internal incentive, free food, bonus, beverages, and certificates are given to them.

Awards

Q: How do you award them?

On their performance basis monthly certificate, annually certificates, cash are given to them.

There is also employee of the month certificate with cash.

Employee’s training

Q: How do you train your employees related to their behavior and attitude?

Quarterly in a year and after six month there is internal training section for all employees. In

which they are educated that how do deal with customers. Any employee can volunteer to be a

part of this program to hone his/her management and restaurant skills. Management also applies

a counter-check on the procedures followed in the training program for fairness and equality of

procedures. Tests are organized for the management and the crew and everyone has to pass them.

Employees Pays

Q: What if all the employees demands to increases their pay?

There is a handsome amount of pay given to every employee. So there is no option of such case

to rise. We have our procedure of paying system. In which we usually increased the pays of

employees every year. Besides all there is bonus, additional cash etc. are given to them on

monthly basis.

Job rotation

Q: Are there any job rotation, job enlargement and job enrichment in pizza hut for employee?

Employees are given different tasks that are individual or team within a company. They are not

sent to other companies.

Security

Q: What type of security you provide to your employees?

There is life insurance policy for every employee that work for pizza hut, whether he/she general

manager, assistant manager or a crew staff.

Performance

Q: How you do performance appraisal analysis of employee what if employee not happy with

performance appraisal then what you do?

There is file of every employee in which his/her performance are record and update daily. Every

employee is informed by manager about his/her performance at the end of day. If he not happy

with performance at the end of day or month his/her previous record is shown to him/her to

satisfy him/her.

Employee empowerment

Q: How you empower your employees?

That depends on the situation in the absence General manager, manager has the authority of

general manger and in the absence of both general manager and manger assistant manager has

the final authority. Mostly from 1pm to 10pm manager is available so he has the final authority.

Quality cost

Q: How you reduce or overcome quality cost, prevention costs, appraisal cost, inter and external

failure cost?

We have very strict check and balance system for quality cost. There is proper documentations of

everything i.e. machinery which we are using, employee suggestions, comments cards, E-mails

are checked daily in which customer suggestion, complains are checked on these basis we check

our quality and try to overcome the quality cost.

CUSTOMER SATISFACTION

Umer Farooq

Pizza Hut is working hard to achieve high standard in customer satisfaction by putting a lot of

efforts and resources in it. During the past four decades Pizza Hut has built a reputation for

excellence that has earned the respect of consumers and industry experts alike. Building a

leading pizza company has required relentless innovation, commitment to quality and dedication

to customer service and value. In the Mission Statement of Pizza hut (PEARL)

P.E.A.R.L.S Core Values at Pizza hut (P.E.A.R.L.S) for Employees

Have a PASSION for excellence in everything that is being done.

EXECUTE with positive energy and urgency.

Be individually and collectively ACCOUNTABLE for growth in people, customer

satisfaction and profitability.

Find reasons to RECOGNIZE the achievement of others and have fun doing it.

LISTEN and more importantly, respond to the voice of the customer.

Think SAFETY first.

Let’s discuss some factors that tend to increase the satisfaction level of the customers.

Atmosphere that Attracts the Customer

Pizza hut provides their quality products along with quality staff, a very hygienic environment

along with a great dining experience. Customers are attracted more towards the atmosphere

nowadays as it enhances the pleasure while enjoying the quality products. The building of the

Pizza hut has also a very cool view and gives a unique look in between other shops in the area.

Customers tend to go to that restaurant which gives a cool look. The interior of the building is

very beautifully designed which a three storey is building. The lower storey of the building is

reserved for parties and other events. People can book it for a certain time to enjoy pizza parties,

birthday parties, family parties and other activities. The other two portions are reserved for

families and other customers. The nice view from the interior gives a very relaxing environment.

Customer Complains Handling

Pizza hut sees every customer complaint as an opportunity to maintain confidence in its products

and services. There is customer complains center in which any customer has right to complain

about the issues he/she is facing. To handle the customer complains pizza hut uses B.L.A.S.T

tool i.e. Believe, Listen, Apologize, Satisfy, and Thank. Customers can complain directly to

manger, through website and by mailing them. Mails are checked daily and responded back to

customer. There is also comment card system which is strictly checked.

Staff that is Always Ready to Help

One of the most critical things that an organization needs to be aware of is the Communication

with Customers, the behavior and attitude of the staff and the motivational level of the staff.

These factors can convert a customer into no lost-customers in no time. The customers expect

that all the staff treats them very well, help them when they want, guide them as they required

and provide the best service than other.

As you enter in the building of Pizza-hut, you are greeted warmly by one of the staff and he/she

asks the number of people with you. After knowing the answer he/she takes you to the exact

place where you can sit around without searching for a seat. A waiter will come to you as soon as

you take the seats and present with Pizza hut Menu. He books the order and tells the exact time

of the servings.

Apart from serving, the staff members including the waiters have a very good way of talking to

the customers. They are very humble and always ready to serve the customers. They can even

listen to anything that customers complain about in any type of attitude. They try their best to

satisfy the customer. Staff members at Pizza Hut strive each day to provide 'CUSTOMER

MANIA' - the kind of service that ensures that every visit of the customer is a memorable one.

Listening to Voice of Customer

The mission statement of Pizza-hut contains the statement “Listening to the voice of Customer”.

No organization can increase their quality without listening to customers. Pizza hut does this job

incredibly good.

As soon as you are finished eating, the crew comes and takes feedback about the food. He asks

“How was your experience today with our food?” The customer can express himself as he likes.

This one to one communication is the best approach for getting real feedback.

There is a comment card placed on each table. One can fill it up which is directly sent to the

manager. The comment card contains some given choices answers to question that explain the

quality of the service provided on by the staff. Customers can express themselves and hide their

identity if they want to.

Pizza hut has a very attractive website showing all the menu and special offers for the customers.

There is a section of collection customer’s feedback as well. Hence it seems right that they

indeed listen to the voice of customers.

Strengths

Good Quality Food (Hygiene)

Brand Name

Food worth its Price

Good Service

Weaknesses

Parking Facilities

Advertisings are very less

Fewer Outlets

Opportunities

More outlets should be open.

Sitting Area should be broader.

Environment should be more attractive.

Attractive offers should be introduced.

BENCHMARKING OF PIZZA HUT (Junaid Hussain)

Pizza hut do not really benchmark other than pizza hut. They do not try to benchmark with their

competitors which include Domino’s Pizza.

Pizza Hut focuses on its performance. There is a strict check and balance for the performance of

PIZZA Hut. They always try to improve and in search of the following

How to improve?

What can be improved?

Where are we?

In search of the answer of above questions they take feedback from their customers in the form

of questionnaires. They compare their best practices with their own organization such that they

take comparison from other outlets of PIZZA hut by giving priority to customer satisfaction and

gaining more profit.

Performance Benchmarking

They use to compare and monitor the performance of each outlet with other outlet and try to

analyze the performance indicators.

Qualitative Benchmarking

They try to look and monitor the systems which provide fruitful results. They try to find the best

practices in their own organization in such a way that they take the best practices of different

outlets. These best practices include the staff training and different session which are quarterly or

bi yearly runs which can be varied.

Planning

They plan for each outlet independently. Planning includes budgeting and important decisions

which are try to take in the favor of the whole. Manager made the final plan. Assistant manager

also contribute in it with the final approval of General Manager.

Whenever something not goes into the favor of the organization and if not give the desired result

then finally pressure comes on the manager and general manager.

Compare

They compare the plan with other outlets when the desired output is not achieved.

For example if they do not meet the actual base line sale for a specific time then they final go to

other outlets of their own PIZZA hut and compare with it. But this thing usually happens very

rare.

Review

They try to review the plan to achieve they better quality and achieving customer satisfaction to

provide the best.

Planning

Compare

Review

Improvement

Actually the managers in a town are known to each other personally and meetings are taken

place after some time where they discuss the progress of outlet and share their common goals for

the success of organization and to provide the better service.

Improvement

After review and comparison, they always look for the improvement of these processes.

In nut shell, they do not really benchmark PIZZA hut with other organization but they try to

consider the suggestions of customers, look for the tools and techniques of other outlets to

achieve the strength and overcome the weaknesses.

A SURVEY ON PIZZA HUT DELIVERY PROCESSES

Hammad Akbar

A lack of clarity of delivery area annoyed about 71% of customers, with 24% wondering why

Pizza Hut did not deliver to them, even though the restaurant is present in their area.

About 83% of the customers complained about wrong or missing food items. Follow-up calls to

Pizza Hut often exacerbated the problems

This area marks the smallest portion of delivery issues. Melted ice-cream, dried or cold pizza and

hot wine were the most complained about 50%. While 25% of customers are neutral and 25%

giving positive response.

The above figure shows the overall negative response of customers in all areas. 25% of people

complaints about their delivery areas, 23% complaints about ordering experience, 44% about

delivery speed, 6% about order accuracy and 2% of customers give negative response about food

quality.

GROUP PHOTO TAKEN IN PIZZA HUT F-7 BRANCH

QUESTIONAIRS

If there is something wrong with the food and customer complains at the spot what do

you do?

First of all we apologize for it and give them with alternate and also to relax them we

provide an appetizer like salad etc.

How do you manage complains regarding late delivery or sales man attitude?

We listen for a complaint and excuse the customer and if sales man is on guilty we first

time warn him and if he repeats the mistake then we issue a warning letter.

How do you know if the customer complaining is right or he/she is playing for fun?

It depends upon the condition. Actually we know our staff and his behavior therefore we

do manage it.

What is the source of your food ingredients like chees chicken etc.?

Source of food includes local and some imported as well.

If you would like to compare you company with some other which companies it would

be?

Obviously our competitors but mostly we do not hesitate from it since it is leading.

How do you evaluate or what do you do with comment cards. How do you handle bad

comments?

These comment cards are not just a formality it tells us our relationship of customers. Bad

comments need to be proper reasoning we consider it.

In case of home delivery, how you handle complain that the pizza is rotten?

In case if the pizza is rotten the company will replace the pizza.

Have you ever benchmarked your company with other company? Did you improve on the

basis of that data?

We do not need to benchmark it but we try to compare the performance internally. Like

from outlet to outlet.

What are the methods by which you are trying to improve pizza hut

It includes trainings and meeting at senior level.

Pizza hut is a big name, how much they pay each employee a month. Are there any

bonuses a mouth?

Pay is not fixed. It depends upon the experience and performance. At the end of month

performance is evaluated. We give certificates and awards at the end of month.

Customer is never happy. What different techniques your company does to keep the

customer satisfied?

We satisfied customers on spot by going on the table and ask them if they are in need of

something.

Where do you see pizza hut in the competition among different pizza provides in the next

10 years?

For such a thing at a top level, performance of our outlets is monitored.

How much you focus on maintenance and repair of all equipment present in pizza hut.

And are there any alternatives if equipment fails?

There is a proper trained maintenance staff which goes to different outlets and sees its

performance. Since all these things are monitored by our own staff as well.

How do you measure the performance of pizza hut?

Performance is related to the business. The more the sales are going up better is the

performance.

Do you compare your branch with other branches of pizza hut?

Yes our performance is evaluated from one outlet to another. We compare different

outlets.

Are there any communications between different branches of pizza hut?

Communication is always there and managers use to communicate regarding

performance evaluation.

Why there are very few advertisements of Pizza hut on Pakistan TV?

Actually here in Pakistan we do not need to be advertised but off and on we give our

offers in newspapers to keep the customers update.

If you face any specific problem how you solve it?

Manager and Assistant manager discuss it and go for its solution.

How do you mange if there is houseful? If there is no sitting place?

We have a staff which gives the guidance to coming customers. We provide a sitting

place outside the outlet; tell them a time in which they will be given a table and take their

order.

Is Awareness is given to all visitors/guests to take suitable measures in emergency

conditions?

We have mentioned guidance on a chart so that what they have to do in case of

emergency.

REFERENCES:

[1]. http://www.businessdictionary.com/

[2]. Pizza hut employee handbook

[3]. Pizza hut Jinnah super f-7 Islamabad

[4]. www.google.com

[5]. www.wikipedia.com

[6]. http://www.cpsc.gov/businfo/notcpsc.html

[7]. http://www.cpsc.gov/businfo/fhsa.html

[8]. http://www.cpsc.gov/businfo/pppa.html