Pizza Hut

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Home Delivery that increased to $7 Billion from just $0.1 Billion in a span of 8 years.
In the time span of 1984 and 1985 the home delivery of pizza grew to be the newest and fastest growing fast food concept. People who had enjoyed dining out for pizza were also ordering delivery pizza for additional meals or even evening snacks. The market was opening up and becoming very successful. felt they needed to jump into this area of sales. By 1986 there was a surge of business in the pizza market. The main reason for this increase was the home delivery of pizza which had suddenly gained great popularity.
FRANCHISING CONCEPT & ITS DISADVANTAGES
had a logistical problem with the delivery aspect of sales being added to the market. Franchising was done for each restaurant opened. The initial fee was $15,000 for each system. The company or franchise also paid 4% of monthly gross sales to the company. An investment of $466,000 to $816,000 was made when the dine-in/carryout ...

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to established stores or the set-up of delivery-only facilities which involved less cost and less land area. The delivery-only facilities did not need to maintain large parking lots. They only needed a small area for the employees, including the delivery people. The company tried using a computerized central ordering system called the Customer Service Center (CSC). The use of one single number to order pizza from Pizza Hut sounded good but it was less than efficient.
EXPENSIVE AND INEFFICIENT CUSTOMER SERVICE CENTER
The principle was that all calls would go into one central computer that would direct the orders by fax to the appropriate store. There was a time delay in getting ...

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