Pizza Hut Corporation: Concept, Analysis and Criticism

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Table of Contents

Introduction: The Concept of the Corporation
The History of the Company
Pizza Hut Restaurant Formats
Pizza Hut Radical Menu
Corporation Rankings
Criticism of Pizza Hut Corporation’s Work
Conclusion: Pizza Hut as a Global Mechanism of Fast Food Production
References

Introduction: The Concept of the Corporation

Pizza Hut Corporation presents one of the most recognized restaurant chains in the USA. Moreover, the industry has lately expanded its status and became an international franchise as well as a subsidiary of Yum! Brands. The global corporation possesses a status of a fast food leader, due to its fabulous Italian-themed kitchen and multidimensional restaurant formats.

The History of the Company

The establishment of the company dates back to 1958. Primarily, it was founded as a small restaurant by two Kansas students, Frank and Dan Carney. The name of Pizza Hut Corporation derived from the shape of the first company building that resembled a hut.

The original architectural trend of the company’s buildings implied the usage of shingled red roofs and trapezoidal windows. When the managers of the industry made a decision about a shift to delivery, the projects of building constructions were altered. Still, by that time there were already more than 6 000 traditional “huts” throughout the world (Peterson, 2012).

Pizza Hut Restaurant Formats

A huge success of Pizza Hut Corporation is partly stipulated by its innovative business facets. Thus, the company is split into multisided restaurant formats such as pasta bars, dine-in establishments, carry-out locations and complex restaurants that provide their customers with all the types of eating options.

A progressive politics of the corporation targets the food concepts as well. Deck ovens, high-tech menus and open environments reveal the company’s orientation upon a constant development and improvement. Carrie Walsh, chief manager of Pizza Hut Corporation, described the tactic in the following way: “as the category leader, it is our responsibility and obligation to drive our business forward to meet and exceed the needs of our customers, and we feel these new assets are one of the many ways we are doing just that” (Terfehr, 2014, para. 2).

Therefore, one of the leading strategies of the corporation is its innovation-based approach that predetermines a progressive development of the company restaurants.

The introduction of bold flavors within the Pizza Hut restaurants contributed to the popularity of the company. A consistent modernization of the menu was a step that had to be taken by the company managers so that to enhance the sales that had dropped in 2012.

As a result, lately, the corporation has launched the sales of new asiago breadsticks with the various types of sauces. Balsamic drizzles and cherry peppers became the ideal complements to the new signature menu. Moreover, Pizza Hut elaborated the types of crusts so that to give the customers a chance to choose not only the toppings, but the dough for their pizzas as well (Sanburn, 2014).

Consequently, Pizza Hut Corporation maintains the innovative format standards and improves the quality of its food in order to get the clients’ attention.

Corporation Rankings

A number of Pizza Hut franchise units increases every year. Thus, according to Koup (2004), the company owned 7,083 establishments in the U.S. and 4,570 units in the world in 2011, while the total number of units in 2015 increased to 7,337 and 5,911 accordingly. The general investment into the corporation ranks from $297,000 to $2,109,000 and the net worth of Pizza Hut equals $700,000 (p. 134).

Due to its global character and an immense popularity, the corporation rankings are the highest among the top pizza companies of the world. Thus, the gross sales of Pizza Hut equal $12,600 000 000 comparing to $7,400 000 000 and $ 2,939 273 000 of Domino’s Pizza and Papa John’s International respectively (Top 100 pizza companies list, 2013). Consequently, one may deduce that the financial status of the corporation turns it into the leading company on the fast food market of the U.S.

Criticism of Pizza Hut Corporation’s Work

The leader among the contemporary pizza corporations, Pizza Hut is not devoid of disadvantages and weak strategic points. In 2007, the company was severely criticized by the British media. The matter of controversy was the high content of salt in Pizza Hut meals. Thus, it was claimed that the corporation had to follow the distinct nutrition guidelines (Fast food salt levels ‘shocking’, 2007).

Besides, the ruling corporation is often described as a plagiarizer of the celebrated McDonalds. Specifically, it is argued that Pizza Hut targets the markets that are marked with a presence of McDonalds. This strategy implies a gradual substitution of famous fast food units for Pizza Hut establishments.

Consequently, one may conclude that the pizza company with the highest world rankings possesses some crucial drawbacks that disrupt the corporation’s fame and reputation.

Conclusion: Pizza Hut as a Global Mechanism of Fast Food Production

To sum it up, Pizza Hut Corporation is described as a dominating mechanism that functions on the global market of pizza production. The net worth and the ranking of the company exceed the exponents that are presented by the analogues corporations. Nevertheless, the underlying principles of the company’s work are often disapproved due to the low food quality and plagiarized concepts.