Comparative Study Between Pizza Hut And Dominos Business Essay

Comparative Study Between pizza field hut And dominoes Business EssayThis question is based on service comparison of pizza hut and dominos. Delivering quality service is of utmost important. This look for is based to test the quality of service and comparison between two pizza Houses. The fast victuals spryness of India is experiencing phenomenal festering and is oneness of the fastest growing sectors in the country, with the compounded annual growth tells of the market crossing 25%. Further, on the tail dismiss of ever-changing and busy lifestyle, fast uphill middle class population and surging disposable income, the industry testament continue to grow at a pace in coming years. It now accounts for roughly half(prenominal) of all restaurant r correctues in the true countries and continues to expand thither and in many other industrial countries in the coming years. that some of the most rapid growth is occurring in the developing globe where its radically changing the g overnment agency hoi polloi eat. People buy fast food because its cheap, easy to prep are, and heavily promoted. This paper aims at providing randomness ab surface fast food industry, its trend, reason for its emergence and several other factors that are liable for its growth.This communicate proposes extensive research and rational analysis on the Indian fast food industry and tracks the changing dynamics of the market. It features market performance, key related sectors and competitive landscape of the market. The research study looks into the market prepare and future forecasts, and outlines current trends and analyses. It has been fuck off to help clients in analyzing the opportunities, challenges and drivers vital to the growth of fast food industry in India.For the purpose of this report, Fast Food Industry admits fast food restaurants, teahouses, c mangleee shops and juice bar in India.Consumers result be feeling the impact of the crisis far much over the com ing months and will afford to adjust their daily habits and attitudes accordingly. on that point are already clear signs pointing in this direction, which are not necessarily detrimental to food retail. In cartridge holders of economic crisis, the cocooning military group tends to emerge and this involves consumers counsel increasingly on activities within their own homes. For example, they will go out less in favor of enjoying evenings in. These behaviors will impact primarily on the restaurant industry, with the lack of consumption outside the home make up for by the purchase of food products to be eaten at home, the research group noted something which has already been seen in a number of countries. Although only around half of consumers will actually be modify by the crisis, the situation will take in a major impact on food retail. The motley sectors, industries and retail will all be affected by the economic crisis to varying degrees. There will be losers, but to a fa ult winners in this downturn.The 6000 corer fast food retail industry is mainly dominated by the multinational players and the key players which are active in the research of the food retailing include pizza pie hutpizza chantey is one of the flagship brands of Yum Brands, Inc., which as well as has KFC, Taco Bell, AW and Long John Silvers below its umbrella. pizza pie Hut is the worlds epicst pizza chain with over 12,500 restaurants across 91 countries.In India, pizza Hut has 137 restaurants across 36 cities, including Delhi, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune , and Chandigarh amongst others. Yum Is in the process of enterprise pizza pie Hut restaurants at many more(prenominal) locations to service a puffyr customer base across the country.dominoes dominos vision is pore on Exceptional people on a mission to be the best pizza speech telephoner in the world . dominoes is committed to bringing fun and excitement to the lives of our customers by deliverin g pleasing pizzas to their doorstep in 30 pieces or less, and all its strategies are aimed at fulfilling this commitment towards its large and ever-growing customer base.dominoes constantly strives to develop products that suit the tastes of its customers, thereby bringing out the Wow military group (the feel good factor). dominos believes strongly in the strategy of Think local and act regional. Thus, fourth dimension and again dominoes has been innovating toppings suitable to the taste buds of the local populace and the Indian market has real hale accepted these.Problem statementWhy do people prefer pizza-Hut over dominoes pizza (In respect of service, quality, price, location)?Research ObjectiveTo find out the comparative analysis between Pizza-hut and dominos-pizza.To check out the preferences of the people / or the customers.To find out which factors are more preferred by the customers.BACKGROUND OF THE PIZZA-HOUSES dominos StoryThe Dominos Pizza story is one of passion, determination, the ability to overcome adversity and most importantly, a single-minded dream of becoming number one in the pizza home-dining industry.Four Decades Of ExperienceThe 60sDominos Pizza began with one put in in Ypsilanti, Michigan on celestial latitude 9, 1960. Its owner, Thomas S. Monaghan, was a 23-year-old scholarly person at the University Of Michigan School Of Architecture who was looking for a business venture to sponsor his studies. With his chum James, he bought an existing pizza store called Dominicks Pizza. He soon found himself absorbed in the pizza business and immediately began to make improvements. Although a novice in ground of pizza making skills and experience of the industry, Monaghan had the self-determination to get the job done and to do it better than anyone else. What was needed was to consistently make expectant pizzas fast and safely deliver them to the customers door.His partnership with his brother was dissolved in 1961, by 1965, Monaghan own triple stores and officially changed the company name to Dominos Pizza, Inc. A pioneer and innovator in the pizza pitching industry, Monaghan continuously looked for better and faster ways to handle the rush. He developed a fast pizza-making mode and an efficient commit taking system. From the moment the phone rang to the season the pizza was delivered to the customers door, Monaghan stressed the need for hustle. neer get behind was the operational motto.Even though sales pitch drivers were instructed to abide by the traffic laws at all times, one time they got out of their delivery vehicles they were to run to the customers house, ensuring a piping hot pizza. Capitalizing on the succeeder he had found in his three stores servicing college campuses, Monaghan adapted the same successful system at Michigan State University in 1967. A massive pizza craving population of 20,000 students living on one campus, widening one sizing of pizza with only six toppings to choose fr om and introducing the companys 30 minute pledge soon made this store the companys biggest money maker. This store is also notable because it solidified in Monaghans mind the need to expand. Monaghan interchange his first claim to Charles Gray on April 1, 1967, after personally instruct Gray for the job himself.The company suffered its first serious setback when on February 8, 1968 the companys central office and commissary were destroy by fire. The company was inadequately insured and Monaghan was only able to recoup $13,600 in losses. Nevertheless, Monaghans belief in his dream drove him to push the company forward once again. By the end of 1969, Dominos Pizza, Inc., consisted of 42 stores reporting an estimated $8.1 million in total sales.The 70sDespite its high turnover, Dominos was $1.5 million in debt. By 1970, its creditors took action and 200 display cases were filed against it. Monaghan lost control of the company to the banks, only to have it returned to him 10 months later in worse condition than when they had taken it over. Monaghan and his wife managed to salvage what was left of the company and once again took off in pursuit of their dreams.Monaghan focused on rebuilding the trust of his creditors and the companys reputation and spent much of his time visiting his stores, talking with store managers and team members, and observing them in action. He continued to emphasis the Dominos system of simplicity and speed. Passing on his enthusiasm for the nature of the business and creating a friendly, competitive environment, Monaghan also implemented the Manager of the Year award, a national honor presented to the companys best store crew chief. sharp what made Dominos different primarily its unparalleled successful system of promoting from within, pizza makers, delivery drivers and order takers all knew they had the opportunity to advance through the ranks to become a store manager or even a franchisee. This not only encouraged a spirit up of en trepreneurship, but also ensured a dedicated, industrious cultivateforce. Ten years later Monaghans vision of promoting from within to build the best company with the best people paid off as 92% of Dominos Pizza franchisees had bestir oneselfed their careers in the company at gate level jobs.Maintaining his persistence on making training a top priority, a week-long new employee penchant program was developed as Monaghan toured the country visiting stores. After a decade and a half of sixteen hour shifts and endless obstacles to overcome, Monaghan and Dominos Pizza were finally running smoothly. By the end of 1974, there were nearly hundred stores amassing $20.4 million in sales. Late in 1974, Monaghan received a letter from Amstar community which had been using the trademark Domino since 1900. It demanded that he change his companys name. With nearly 100 stores nationwide and growing creation recognition and acceptance, Dominos Pizza was being told to return to the starting g ate.On September 30, 1975, Amstar filed suit against Dominos Pizza for trademark infringement. Dominos lost the case and was forced to operate all new store openings under the name Pizza Dispatch. But 1980 brought a positive conclusion to the lawsuit, with the company being permitted once again to operate under its long-established identity of Dominos Pizza. The company ended that year with 398 stores recording $98 million in sales.Franchising also continued to grow. In fact, by this time, most of the companys growth came from its strong franchise base, and the majority of the franchisees were from the internal ranks. Opportunity kept the Dominos Pizza team motivated and highly productive. There was something big waiting for everybody who was willing to work for it. Monaghan often referred to his franchisees as the very heart of the company and time and time again they have proven this to be true. With their energy, dedication and financial investment, they would help bring Dominos Pizza to a level of success beyond what Monaghan had ever imagined possible.The 80sIn 1983 the company celebrated the opening of its first world(prenominal) store in Winnipeg, Canada. Dominos Pizza International, which Monaghan called the companys hope for the future, became in part responsible for much of the companys later movement and growth. 1983 also saw the opening of the companys 1000th store in carbon monoxide Springs, Colorado. After a quarter of a century of honing its pizza making and delivery systems, Dominos Pizza knew the pizza delivery business. In 1985 tens of thousands of customers around the world showed their confidence in the company by social club 135 million pizzas during that year, an astonishing 69% increase over the previous years sales. By 1989 Dominos had assailable its 5000th store.The 90sBy 1992 the outside(a) division had opened its 500th store outside the United States. The national market continued to grow with the introduction of innovative var iations to the original pizza recipe as well(p) as creative up-sell items. 1993 was shaping up as another major year for Dominos until December brought one more crisis a $79 million judgment against the company in a lawsuit alleging the 30 minute guarantee was at fault in a St Louis traffic accident. After old age of soul-searching, Monaghan decided to withdraw the guarantee permanently, a move that made headlines worldwide such was Dominos renown. not only is Monaghan credited with pioneering the multi-billion dollar pizza delivery industry, but also with numerous inventions. He is responsible for the corrugated pizza box, conveyor ovens, and Doug mixers, insulated bags to transport pizzas in, the pizza screen, Doug trays and, most important to the success of his own business, a unique franchising system enabling managers and supervisors to become independent business owners.In 1999 Monaghan, a deeply apparitional man, decided it was time to give back to the community much of th e wealth he had accumulated as a result of his 39 years at the helm of this great company. So he sold Dominos Pizza to Bain Capital, an organization with a proven track record of identifying companies with signifi stoolt growth potential, and manoeuver them to reach that potential.The FutureMany changes have been made since Dominos was sold to Bain Capital, and a new spirit of excitement has paved the way for the future. Despite encountering setbacks and obstacles along the way, the story of Tom Monaghans 39 years at the helm of Dominos Pizza is one of never giving up on your dreams. What began as one mans vision evolved into a thriving worldwide industry?Dominos Pizza India LimitedDominos Pizza India Limited (DPIL) is the master franchisee for India, Srilanka , Bangladesh and Nepal from Dominos Pizza International Inc., USA. The company had been promoted by Mr. Shyam S. Bhartia and Mr. Hari S.Bhartia of the Jubilant Organosys Group (Formally Vam ingrained Group).The Company was incorporated in March 1995. The First Dominos Pizza store in India was opened in January 1996, at New Delhi and today after nine years Dominos Pizza India has magnanimous into a countrywide network of over 100 outlets in 27 cities, which includes-North Delhi, Gurgaon, Chandigarh, Ludhiana, Amritsar, Jallandhar, Dehradun, Shimla,Agra, Kanpur, Lucknow, Noida, Faridabad, MussoorieSouth Chennai, Bangalore, Hyderabad, Coimbotore, Mangalore, Cochin, Secundrabad, Manipal, eastern United States KolkattaWest Mumbai, Pune, Ahmedabad, GoaDominos intends to penetrate completely within these markets by opening up 20-25 outlets per year in these cities. Dominos has a newfangled and enthusiastic team of over 2,100 employees. Today, Dominos has emerged as the leader in the fast food segment with about 65% of market share of pizza delivery in India and have outlets more than any other corporation in the business of food, not just the pizza business. All the Company outlets are corporate outlet s invested by the company and also managed by the company.Over a period since 1996, Dominos Pizza India has established a reputation for being a home delivery specialist capable of delivering its pizzas within 30 minutes to its community of loyal customers from its entire stores around the country. Customers can order their pizzas by calling the single countrywide Hunger Helpline 1600-111-123 and Dominos was the first one to start this facility for its customers.Dominos vision is Exceptional people on a mission, to be the best pizza delivery company in the world. Dominos is committed to bringing fun and excitement to the lives of our customers by delivering delicious pizzas to their doorstep in 30 minutes or less, and all our strategies work for fulfilling this commitment towards our large and ever-growing customer base.Dominos constantly strives to develop the product that suits the taste of its customers to bring out the WOW effect (i.e. the feel good factor). Dominos believes in the strategy of Think local and act regional that is immingle with a playful image personified by our Hungry Kya? bloting. Thus, time and again Dominos has been innovating toppings, suitable to the tastebuds of the locals and these have been very well accepted by the Indian market, are doing extensively well in the market. We are constantly in the process of innovating further we introduce new topping every 3 -4 monthsDominos understands customers demand and is constantly developing local flavors understanding the local sentiments. Also, the ingredients, sauces etc. are made charge in mind the taste buds of Indian consumers while retaining the international flavor.Dominos constantly strive to make the company an integral part of the lives of the target audiences by getting involved with the clientele at the randy level and building long-term relationship with them. Thus, Dominos concentrate more on carrying out below-the-line activities in the area it dish outs.Dominos believe in bringing fun and excitement into the lives of our clientele. We take our delivery propose very seriously and our entire corporate ethic is based on it. Dominos is the recognized world leader in Pizza delivery. But it isnt just about delivering its also about giving back to the community. Dominos believes that an essential component of corporate responsibility is to provide support to charitable organizations that benefit the communities where its employees and customers work and live. Dominos worldwide is known for its commitment toward social causes and believes in adding fun to the lives of our customers and communities it serves.In India, Dominos has been associated with the NGOs accustomed to the cause of underprivileged Childrens. Dominos conducts Store Educational Tour (SET) for the underprivileged children time-to-time. Recently this was done in the one of the Dominos outlet in Delhi and Mumbai with the underprivileged children from CRY (Child Relief and You) where Domi nos took the pledge to provide part-time employment to the eligible wards from CRY who are above 18 years, reiterating its commitment towards social causes. Also, fifty- percentage of that days first 20 deliveries of the store were given to CRY toward the cause of the underprivileged children. The children had a gala affair time while they learned to make and bake pizzas at the store and finally tasted the sumptuous offerings made by them during the Store Educational Tour.Dominos Pizza India also boasts about its commitment to serve its customers on time by implementing the 30 MINUTES OR FREE service commitment, they have been able to achieve this as a result of continuous efforts and dedication of the entire team in improving operating efficiencies.Dominos Pizza India has been consistently rated amongst the top 2 pizza chains worldwide in the Dominos family by Dominos International, in terms of quality of operations. Our pizza delivery times have also been judged as the best deli very times in the world across all Dominos.PIZZA hutch INDIABackgroundPizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India and assiduous nearly 4,000 people by end of 2004. Yum has invested about US$ 25 million in India so far this is over and above investments made by franchisees.Yum Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, AW and Long John Silvers restaurants worldwide. Yum Generated more than US$ 25.9 billion in worldwide sales in the year 2003, and has more than 33,000 restaurants in over 100 countries.A major player in the Indian fast food and beverage sector market place sharePizza Hut is believed to have close to 50 per cent market share of t he nonionised pizza-retailing segment in India.Financial performanceAccording to an article in Financial Express, the market size of the pizza segment is around US$ 87 million and currently growing at the rate of 15 per cent to 17 per cent per annum. According to Pizza Hut sources, most of their outlets are financially successful, encouraging further expansion. In India, the average investment for each outlet is US$ 275,000-335,000 and is borne by the franchisee.Factors for succeederOffering value foodEmploying economies of scale, Pizza Hut has made its offerings more affordable. Its delivery offer of US$ 4.4 for four personal pan pizzas has been very successful helping it grows the business by 25 per cent. They have recently introduced a come in of vegetarian personal pan pizzas for US$ 1.1. Most Pizza Hut restaurants are located in the metros and smaller metros. In taking long strides across the country, Pizza Hut is consolidating its position by opening more restaurants in the metros where it already has a presence as well as opening outlets in new markets.Moving beyond metrosAccording to company sources, Pizza Hut is base beyond the metros and foraying into 12 to 13 new markets including Trichy, Nagpur, Bhubhaneswar, Thiruvananthapuram and Pondicherry to increase penetration.Aggressive marketing and tie-ups with local and popular brandsPizza Hut has increased its visibility by launching a well-received TV campaign aimed at the young crowd. It has formed partnerships with recognized brands such as Nestle and Pepsi. It also holds regular promotional campaigns targeted at children and uses these alliances to offer packages during these campaigns.Developing the local supply chainThe local supply chain for Pizza Hut was developed by Yum and currently 95 per cent of the ingredients they use are locally produced. They now import very few specialty items like pepperoni.Leveraging the India Advantage International brand with an Indian heartPizza Hut is one of the first international pizza chains with purely vegetarian dine-ins at Chowpatty (Mumbai), Ahmedabad and Surat, which also serve Jain menus. Pizza Hut has even opened two all-vegetarian restaurants in the horse opera state of Gujarat to ply to the Jain religious community, whose members prefer not to eat at places where meat is served.Offering more than the international menuInternational food chains typically offer only a few place products in other parts of the world. However, Pizza Huts local menu is as large as the international one. According to Pizza Hut, the Indian food heritage is very rich, and hence Indians like local flavours. The Tandoori range of pizzas, which was developed locally, has a menu mix of over 20 per cent.Indigenous sourcing of raw materialsPizza Hut has reduced costs through indigenous sourcing of raw material. It has tied up with a local company Dynamix Dairy Industries Ltd (DDIL) for sourcing mozzarella cheese. The landed cost of imported mozzarella c omes to US$ 3.3 3.5 per kilogram. The domestic price, however, works out to US$ 2.99 3.1 per kilogram. Pizza Hut is adding to the bottom line by localising equipment as well as by paying management to inventory replenishment, which has been reduced from 60 to 30 days.Future plansAccording to Yum Restaurants International, India is amongst the top five growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident about expanding its operations in India.Pizza Hut hopes to increase the number of Pizza Hut outlets in India to 180 by the end of 2008 from the present figure of 130. The expansion programmed will make Pizza Hut the fastest growing western restaurant chain in India. In addition, Yum plans Pizza Hut to be in 42 cities by end of 2007, and 55 cities by end of 2008.Conclusions retention up the sentiments of Indian customers and services offered by Pizza-houses and Keeping our study focused on some of the key -areas of sensit ivity of customers preferences (analysis of factors which affects the preferences).We come to a conclusion that Pizza -hut is preferred() over dominos in terms ofVarity of PizzasGood ambienceServices offeredQuality of pizzasLocation of the ventholeWaiting time in the outletDominos is being preferred over pizza-hut in terms of Door step services low-pitched pricingSo we can say that due to these qualities Pizza-hut dominates Dominos -pizzaIn different areas and capture the market share and gain rapidly.RecommendationsFor DominosIncrease varieties in Pizzas. centralize on location of the outlets.Increase the quality of PizzasMake good ambiance in outletsShould focus more on market zing itself confidently.For Pizza-HutTry to attract more number of Ladies customers.Should focus on Low price customers.Make the door step services better