With great demand for its services, Pizza Hut Delivery is looking to enjoy a great 2010

The Pizza Hut story begins back in 1958 when Frank and Dan Carney opened their first-ever Pizza Hut in Wichita, USA. Today, the Pizza Hut empire has grown to a global total in excess of 13,000 outlets.

Pizza Hut (UK) Ltd is building on this success with its national franchise programme, which in the UK originally began in 2001. Its franchised delivery estate is now in the region of 170 units and is set for explosive growth.

Performing well
Mark Fox, Pizza Hut's Delivery Business Director, says despite the recession the business is performing well. “We saw an upsurge in our delivery business as more people chose to stay home and eat in,” he says. “We bore the brunt of the current economic climate incredibly well, partly because of our brand name, but also because Pizza Hut has the best of both worlds.

"In the recession people have wanted to stay in and order food such as pizza. On the other hand, as we emerge from the recession there are more people wanting to party, and again they choose pizzas for themselves, families and friends. There will always be a high demand for our products so our industry is a great one to invest in."

Upon reflecting on recent performance, the results are extremely positive. “We’ve built on a great 2009 with a fantastic start to 2010,” says Mark.
“We’re achieving double digit sales growth already this year, thanks in part to our strong promotional activities. Our 12-week TV campaign has both boosted our sales and raised our profile even further.”

The benefits of 2009/10’s success have good implications for Pizza Hut and its franchise partners. “The strong performance has helped our existing franchisees grow their businesses further, and there are more newcomers taking a greater interest in what our franchise system has to offer,” says Mark. Pizza Hut (UK) Ltd is part of YUM! Brands, one of the world’s largest franchisors. The Pizza Hut system draws on its specialist knowledge of marketing and product development, and blends this with the expertise of its franchisees in the areas of customer service and local store management. This results is a franchised business that is set for market domination.

“Just recently, I have been appointed as Delivery Business Director,” says Mark. “A specialist team with a 100% dedicated focus to delivery has also been introduced, which deals with the operation of the business. Franchisees also have access to Business Managers, who will help them plan their business. In addition to this, we have finance teams, a Head of Human Resources and a Head of Marketing.”

The great thing about Pizza Hut Delivery’s system is that franchisees and head office staff work closely together to achieve their objectives. “We have great relationships with our franchisees,” says Mark. “We listen to what they say, whether they want advice or if they are making suggestions and contributions.”

With this in mind, Pizza Hut provides platforms for discussion in the shape of specialist Marketing and Operations forums. There is also a Franchise Council. These see senior members of Pizza Hut Delivery discuss existing and future plans with franchisees in all aspects of the business. “What we have achieved is to actually make decisions with franchisees rather than for them,” adds Mark.

In order for potential franchisees to qualify for consideration, Pizza Hut (UK ) Ltd requires you to have a minimum of £130,000-£150,000-plus in easily accessible funds. As for experience and character, there are a number of requirements. “The sort of people we are after should have a record of success in their past ventures,” says Mark. “Whether they are from financial services, marketing, communications, etc, applicants must be able to demonstrate a history of success in their careers to date. They must also be prepared to roll up their sleeves, get their hands dirty and get stuck into the action.”

Believe in the brand
Business experience is a crucial requirement, but you will also need a strong belief in the Pizza Hut Delivery brand. Equally, you will have a strong set of cultural values and a passion for excellent customer service, while ensuring you continually get the best out of your teams. The pizza delivery business is hard work. Candidates must prove they have enough drive and commitment to make their business a success.

As part of the selection process, franchisees will have the chance to get hands-on with the operation by spending a shift in-store. That way they get a feeling for what it’s like to be in a Pizza Hut Delivery outlet, and whether or not they are comfortable working in this environment.

Once approved, new franchisees embark on a dedicated training programme tailored to their needs. Training usually takes place over two-three months and comprises a mixture of theoretical and practical coaching. Whether learning from module-based workbooks or participating in online and classroom tests, a huge bonus of the training programme is franchisees are able to interact with established Pizza Hut employees who bring their own knowledge and expertise to the table.

In order to make their working lives as efficient as possible, franchisees have a wealth of state-of-the-art technology at their finger tips. Management information systems, for example, allow stores to monitor performance, labour usage, food ordering and inventory control.

There are also further technological developments in the pipeline. These include real-time performance reporting - allowing progress of the business to be monitored by franchisees from a remote location. Also planned is a function that enables franchisees to recruit team members online (where only the most suitable candidates are added to the shortlist), online manager and team member training, and major advancements in digital marketing that will further utilise online and mobile technologies.

Mark says that franchising is a great boon for Pizza Hut in terms of developing the business. “If you compare franchise growth with corporate growth you can see the difference,” he explains. “Franchisees have a greater understanding of their business because they can concentrate on their own region, as opposed to a corporate body of 150 stores. They can dedicate their time to the business, and that is what we’re after when we choose our new franchise partners. Real commitment.”

For Pizza Hut Delivery’s immediate future, growth plans are in place and will be implemented in partnership with its franchisees. “We carefully choose areas in which to put our stores so as to make sure they are big enough to sustain expansion,” says Mark. “To achieve this growth we need to be 100 per cent focused on delivering the basics brilliantly - great quality food, hot and on time, every time.”