Supply Chain Management of Pizza Hut

Introduction

Pizza Hut is one of the reputable companies that operate several franchises and food chain in different countries of the world. The specialty of Pizza Hut is to operate in the target market that attaches to the Italian food trend and (Pizza). Pizza Hut operates in the Unites States along with different other countries; however, its headquarters are in Borehamwood. According to diverse sources, Pizza Hut executes its operations around the world with almost 16,000 people. There are two areas in which Pizza Hut operates itself as a family restaurant, specializing in birthday parties; and Home Delivery, which delivers pizzas to the customer's door step. There are four types of menus that Pizza Hut offers to its customers: these menus consists the restaurant menu, menus targeted at the children, take away and delivery menus along with the collection menus.

In United States, Pizza Hut's history dates back to 1958. In 1973, Pizza Hut restaurants in the United States opened in New York. In addition, the company opened restaurants in Japan, Canada and England. PepsiCo bought Pizza Hut in 1977. Three years later, the company introduced Pan Pizza. The U.S joint venture started between PepsiCo and Whitbread in 1982. In 1988, the first U.S delivery unit opened in Los Angeles. The first restaurant converted into a restaurant based delivery store in 1989. In the following year, the company opened its restaurant in Russia. In 1997, the company launched the Sicilian Pizza. Pan Pizza was re-launched as Grand Pan in 1998. In the following year, the company launched Italian Pizza in the U.S. Pizza Hut launched its franchising program in 2001. Pizza Hut opened its 500th restaurant in 2002. The company launched the Big New Yorker Pizza in 2004; and 4 for all pizzas in 2005. The company returned to the Pizza Hut name in 2009.

Supply Chain Management of Pizza Hut

Like many of its multinational competitors, Pizza Hut uses a highly-franchised model that helps maximize profit margins. However, Pizza Hut also owns Pizza Hut's Supply Chain Services (SCS), a subsidiary that supplies dough, ingredients, equipment and services to the stores owned by the company and the franchises (Bogataj, Bogataj, Vodopivec, 345). This model allows Pizza Hut to uphold quality standards and maintain consistency across franchised units, but it also provides the company with a significant revenue stream. In 2010, Pizza Hut's domestic supply chain segment accounted for 56% of total revenues.

The supply chain subsidiary of Pizza Hut is also able to leverage its considerable size and buying power to cut costs when commodity prices fluctuate. The subsidiary of Pizza Hut has allowed the organization to attain a competitive advantage over its global rivalry. According to diverse sources, the globalization has influenced the competition in every industry and intensified it in the industry of food chains. Therefore, Pizza Hut is facing the global rivalry and striving to achieve an above hand over its competition (Bogataj, Bogataj, Vodopivec, 346). The supply chain subsidiaries of Pizza Hut provides one-stop shopping for franchise ...