MARKETING

Impact of financial crisis on tourism industry in UK

Impact of financial crisis on tourism industry in UK

Introduction

The aim and objective of this research paper is to conduct an extensive research on the activities of Pizza Hut and the impact of economic environment on its activities. This research will identify and discuss those factors which are necessary to manage its operation in UK. The global operation of pizza hut has been discussed area wise in this report.

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). We would look into the role of economic environment specifically in the context of Pizza Hut as it has the potential to significantly hamper the growth.

Pizza Hut operates in the Unites Kingdom 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. The company was founded in Kansas in 1958 by brothers Dan and Frank Carney. In order to operate thousands of franchises of pizza hut all over the world, the company has developed certain performance standards through which it evaluates the performance of its every single store.

In contrast, pizza consumer foodservice suppose to record growth below the global consumer foodservice market. The customers of Pizza Hut are supposes to recover gradually; however, the industry is in line with economic recovery. In addition, it is likely to return to a positive value growth from 2011. By the end, of the forecast period, global growth probably will return to pre-recession levels; although, it is likely to remain below the rate achieved by the fast food category as very slow growth in North America (less than 1% constant value CAGR) will drag down the category global performance. A regional breakdown of pizza supply reveals the central importance of pizza full-service restaurants in most emerging markets, where a pizza remains an occasional (yet relatively affordable) luxury. Pizza Hut offers 100% home delivery/takeaway pizza. Particularly in the U.S, this channel is highly competitive, with thousands of small independents and minimal barriers to entry and where major chained operators such as Domino's Pizza, Papa John's and others face constant pricing pressure from the smallest independents.

Globalized operations of pizza hut

Pizza Hut is regarded as having a high level of globalization because they are US-owned and earn the majority of their sales from international activity as well as domestic market. Due to significant competition and the expected subdued ...