We previously looked at the SWOT Analysis of Dominios, a trusty pizza outlet. This time, we’ll take a look at the SWOT Analysis of Pizza Hut, its competitor.
Pizza Hut is an American Multinational food chain that has gained huge acceptance and is expanding accordingly for a decade. They are always bustling with the right crowd, positive vibes, and delicious food. It’s as good as it gets. You simply can’t say no to pizza if you are craving one.
Pizza Hut’s marketing efforts have been successful in supporting them. Marketing evolves with time, according to the demands and preferences of the present population. The bulk of effective campaigns have now migrated to digital media. If you want to learn more about today’s effective marketing, check out our Free MasterClass on Digital Marketing 101 taught by Karan Shah, CEO and Founder of IIDE.
To better understand the reasons behind Pizza Hut’s continuous growth and how they manage to gain such a strong position, let’s go through the SWOT analysis of Pizza Hut. Before we begin, let us learn more about Pizza Hut, its founding, products, financial status and competitors.
About Pizza Hut
Pizza Hut is the world’s largest chain of restaurants with an international franchise, having more than 18,000 restaurants and 350,000 teams serving more than centuries. The company began in 1958 as a restaurant operated by two brothers named Dan and Frank Carney headquartered in the United States in Wichita Kansa
The first pizza place was made by borrowing $600 from their mother. The name Pizza Hut came because their signboard only had room for eight letters, How profound!
They have exciting offers and the menu consists of signature pizza, appetizers, pasta, desserts, beverages. They are not stopping themselves to deliver hot pizzas and fast every time anywhere you won’t enjoy.
Pizza Hut made its invasion into Indian restaurants in Bangalore as the first international franchise. Their dining experience of Brand Equity of ‘Most Trusted Food Services Brand’ for 11 Years in rows.
In 1994 Pizza Hut became the first National chain to offer Pizza delivery orders on the Internet. It was also the first to deliver space with pizza delivery to the space station. Farmers have grown alongside Pizza Hut, and the ingredients they use are still the highest priority. No one loves Pizza quite like Pizza Hut
|Founder||Dan Carney and Frank Carney|
|Origin||Kansas, United States|
|No. of Employees||350,000|
|Company Type||Subsidiary of Yum! Brands, Inc.|
|Market Cap | Yum!||$36.48 Billion|
|Annual Revenue||$1.03 Billion|
|Net Profit||$570 Million|
Products of Pizza Hut
Pizza Hut has been successfully rising in the pizzeria market for half a century by selling –
- Flavoured Bread
- Breadsticks and Cheesesticks
- Cold and Hot Beverages
Competitors of Pizza Hut
They are various restaurants in the industry. These are the top 5 major competitors of Pizza Hut –
- Domino’s Pizza
- Papa Johns
- Olive Garden
Now that we have tackled the areas that give us insight into the company’s core business. Let’s look into the SWOT Analysis of Pizza Hut.
SWOT analysis of Pizza Hut
SWOT Analysis helps the business realize its strengths and weaknesses, which in turn aids in the easy management of the company. This also helps in determining its business and performance in comparison to its competitors.
This analysis helps the company to determine how the company can prosper in the competitive market and devise countermeasures wherever needed
1. Strengths Of Pizza Hut
The strengths of a company are the distinctive skills that offer it an edge in gaining a greater customer base and high profitability. Let’s see how Pizza Hut is a competitively strong company and is related to its peer competitors
- Innovation: Pizza Hut has a hugely popular brand name and a strong database of loyal customers. They provide a great range of pizzas with different innovations, such as hand-tossed pizzas, cheesy crusts and a lot more, while being true to the originality of pizzas from Italy.
- Sponsorships: A lot of international sports events, movies, and project teams for various companies are sponsored by Pizza Hut in an attempt to increase brand awareness and an increasing customer base. In 2018 pizza hut has become the official sponsor of the NFL and In 2019 it has also been debuted its first esports Football stadium. Pizza Hut has shown its brand popularity all over the world.
- Worldwide Reach: Pizza Hut being a Multinational Global driven brand has franchises in over 18 thousand locations in 120 countries. This amplifies the brand’s awareness and influence within markets of various cultures.
- Country Wise Menu: The pizzas they offer are generally the same throughout their franchises, however, they do sell other food products pertaining to the cultural requirements of each area.
2. Weaknesses Of Pizza Hut
Next in the segment of the SWOT Analysis of Pizza Hut, we have the Weaknesses. These are characteristics of a company or brand that require to be strengthened. The following are Pizza Hut’s significant flaws:
- Brand Franchise: The major weakness of pizza hut is that while maintaining its brand loyalty, Pizza Hut is losing its turnover by not focusing its availability in Remote area companies they should concentrate on pizza delivery locations present in B grade towns. If not the fast-food chain, then at least Pizza hut delivery, which is pizza hut’s home delivery franchise should be present in such places which will make customers easier to trust .and by doing this they will have high turnover over other competitors worldwide
- No Variation: Another weakness of Pizza hut is that the taste of their pizzas is there for ages and customers recent polls have shown that customers aren’t satisfied with an equivalent old pizza taste and there is more interest in a wider range of pizzas. Thus pizza hut needs to keep inventing more different types
3. Opportunities for Pizza Hut
Potential areas that provide a company with the chance to enhance its outcomes, boost sales, and profit is known are considered Opportunities. Following are opportunities Pizza Hut can grab:
- Developing Markets: The best opportunity for pizza hut is a further extension in the food range is the greatest option. There are many opportunities for the opening of new malls or shops to spread out in selected B towns and make their awesome pizza available in these places. Sooner or later Pizza Hut has to do it manner if not the dining experience they can start a home delivery franchise which will help them to compete with Dominos
- New Flavour: New variety according to the local taste is a great opportunity to attract customers I am waiting for an mc spicy type pizza to be served in Pizza hut. This will give customers the spicy variety that they want. The same strategy has worked wonders for McDonald’s
- Advertising: More promotions on social media and showing them great works done all over the world will help to grow and compete
4. Threats to Pizza Hut:
External elements that might affect a company’s growth are known as Threats. Pizza Hut’s threats include the following:
- Competitions: Dominos is one of the single significant challenges to the pizza hut when concerned with pizza or Italian Food. Dominos cannot match the quality of Pizza Hut in crust comparison. Dominos are present in most locations where Pizza Hut is not. McDonald’s, Burger King, and KFC are also indirect competitors trying to steal customers from pizza hut regularly.
- Increasing Cost: Cheese, flour, and chicken/meat are some of the main ingredients used in pizza, and their cost has been increasing for the past few years. The increased price rates in the different sectors are pushing the company to increase the retail price, and that would impact the sale
- Health Consciousness: Rising health concerns people being more fitness conscious might also cause a drop in pizza consumption. Consuming too much pizza can increase the risk of heart disease customers as most toppings have a ton of saturated fats. As pizza hut is also trying to bring plant-based meal pizza coast to coast. Food regulatory agencies ’ constant alertness might have an impact on their business operations.
A SWOT Analysis is a fantastic approach for major businesses like Pizza Hut to break down their existence to grasp management risks and benefits. With this, we come to the end of the SWOT Analysis of Pizza Hut. Below we shall conclude the case study.
Pizza Hut is one of the largest chains of Italian restaurants with international franchises. The increasing cost, competitors, brand switching, healthy diet trends, and regulations are some of the main issues. Based on the data above, Pizza Hut should expand its grip and offer healthy food to deal with these issues. All its products are the finest in town because farmers who grew ingredients cared for quality.
Its reach extends beyond its borders not only in its home country but also geographically around the globe. With the strong presence on both online and offline marketing strategy of the brand which has control over the production and distribution.
As we saw Pizza Hut’s sponsorship path brought it great attention. Additionally, they make use of various digital marketing channels such as SEO, Emailing and Content Marketing to promote and educate their clients about newer products and upcoming offers.
Gaining the appropriate expertise in Digital Marketing and completing Certified Courses might lead to opportunities to work for leading brands like Pizza Hut.
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