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    The business secret of pizza hut and pizza hut delivery near me

    The secret to bringing the name of the pizza hut chain brand to all over the world, from the early days of their start-up, the secrets to their success and the difficulties they encountered



    You have at least once passed the pizza hut store, right, if not ? then search for pizza hut delivery near me, you will find that they are right next to you everyday


    The history of Pizza Hut began in 1958 when two students from Wichita (Kansas), Frank and Dan Carney, had the idea of opening a pizza stand. Although the concept was relatively new to many Americans at the time, the two brothers were convinced of the potential of this new venture. After borrowing $600 from their mother, they bought second-hand equipment and rented a small site at a crossroads in their hometown. Their efforts culminated in the birth of the first Pizza Hut restaurant, creating what would become the largest pizza restaurant company in the world.
    Today, Pizza Hut, Inc. is a division of Tricon Global Restaurants, Inc., the chain with no less than 7,200 restaurants in the United States and 3,000 outlets in 86 countries. Two-thirds of restaurants are franchised.
    Pizza Hut achieved a turnover of 122 million euros in 2001 and employs 4,000 people. There are currently 130 Pizza Huts in France with 30 restaurants and 100 delivery stores.

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    A scientific organization of the activity

    Since 2000, the brand’s strategy has been marked by a desire for strong international homogenization both from the point of view of services and products. The consequences of such a policy are the standardization of products and services through the drafting of a manual of procedures concerning the manufacture and delivery of pizzas. The “standards bible” consists of five volumes recording the 945 points of procedure to be followed in production and service operations. The Gold Standard is the international standard that defines the quality of a product and the authorized deviation margin. Color, cut, degree of doneness, taste, texture are recorded there.
    Strategic decisions, the definition of standards, the establishment of norms are centralized at the headquarters in Dallas, which is also responsible for disseminating best practices to the entire company. The implementation of these standards is done at the local level.
    In fact, Pizza Hut represents an adaptation of the industrial Taylorian model to the restaurant sector. However, the standardization of Pizza Hut’s products and services takes a special form. Thus, to ensure the consistency of the basic products used in the composition of the pizzas, orders are centralized by continent (Europe, Asia, Middle East, Pacific). Similarly, employees must “know at their fingertips” the procedure manual corresponding to their area of expertise. In this way, they specialize in the brand’s way of doing things and then cannot have this know-how recognized by competitors. There is thus a double degree of “employee/brand” dependence.
    The recruitment of personnel is not done randomly. Pizza Hut’s US headquarters has recruiting software (about to be exported) that matches the personality of the candidate with the spirit and requirements of the company.

    The necessary adaptations of the Taylorian model

    At the production level, the leaders of Pizza Hut grant a certain margin of maneuver at the local level, which allows adaptations, in particular to take into account the cultural differences between countries. However, this room for maneuver is tenuous. Alongside the non-negotiable hard core “the appearance of the restaurant, the menu, the standards of operations, customer satisfaction”, there is a wheel of freedom for the franchisee, who can thus set his own prices or even modify a recipe. “If Korean market leaders can prove through meaningful consumer testing that local audiences prefer a spicier sauce, they will be allowed to amend the recipe.”
    Every quarter, a supervisor performs a process control audit (hospitality, quality, safety and cleanliness). It should soon be replaced by a monthly audit that the restaurant manager will self-administer.

    While there is therefore no better way to do things globally, changing procedures or amending them at local level is sometimes cumbersome: “We have to spread the peppers in the middle of two layers of garnish: impossible when we must prepare XMR Dallas, the Parisian employees were authorized to modify the instructions”.

    The management of production and services undeniably remains within the realm of Taylorism, the management of local leaders is more a matter of the managerial school. Motivation does not come solely from remuneration as in the Taylorian model. Headquarters sends supervisors to the field “who spend half their time “coaching” managers and carrying out regular audits”. Managers are motivated by recognition: “On the ninth floor of the Dallas headquarters, the portraits of P.C and J.P, restaurant owners in Toulouse and Besançon, adorn the wall of celebrities, alongside their counterparts from Poland, Hawaii or of El Salvador”. For the twenty managers with the best results of the year on the “CHAMPS” audit (satisfaction survey carried out once a month in each restaurant by a mystery shopper, each restaurant being rated out of 100), a trip to Florida and a awards ceremony by the Tricon management committee confirms this recognition.
    The manager becomes a kind of hero, a true pivot of the organization. Similar incentive systems also exist for employees. For example, managers can be promoted from the base by internal promotion through a training program.

    A questioning of organizational principles

    The group is currently experiencing a decline in its commercial and financial results worldwide.
    This questioning is illustrated in France by the persistent difficulties of the signs of the Paris region which have been confronted for nearly three years with repeated social movements.

    The main demands are:

    • application of the 13 th month for all and revaluation of wages for all up to 10%;
    • improvement of working conditions (training in partnership with Road Safety for delivery people, modification of working conditions in the kitchen, where the temperature reaches 60° in summer and 10° in winter);
    • cancellation of the abolition of the soiling premium, cleaning of work clothes by an external company;
    • increase in the amount of meal vouchers (from €2.29 to €6);
    • abandonment of “multi-unit” (a manager who manages two stores) according to the principle “one manager = one store”;
    • respect for employment contracts and the right to privacy;
    • questions for the future of employees and managers of Pizza Hut stores whose signs will close in 2004 (10 closures are planned).
      The application of a scientific organization of work in the service sector comes up against the same difficulties as in the industrial sector. The work there is difficult, the working conditions, which are optimal from the organizational point of view, are not so from the human point of view (this concerns both the material working conditions and the organization of the employees’ schedules). The underlying principle of “one best way” considerably reduces local initiatives. Thus, the best practices are developed (or validated) by the world headquarters, which decides what is best for all the subsidiaries. We find, at Pizza Hut, a Taylorian distribution of design and execution tasks. This rigidity represents a demotivating factor for non-executive employees who are led to demand higher remuneration.
      The challenge for the organization today is to make this method of coordination more flexible by granting more latitude at the local level while maintaining a certain consistency at the global level. Reducing the number of volumes of the “standards bible” could be the first step.
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