Comparison between SAPPHIRE and DIL storesWhat one has to know? SAPPHIRE stores• Its core competency is to cater to customers in a better way• less priority to money or income• it accepts all feedback and tries to improve to the best of its ability• it maintain good relationship with customers support agents and call centers• it also maintains good relationship with people in its distribution channel and agents (third party delivery partners – swiggy, zomato, food panda etc.) who represent its business• due to better service and relationship with customers the profit margin is higher• If there is any problems or any delay in delivery the customers are contacted and given some freebies (coupons, discounts, free side dishes)• Even if customers are misbehaving or abusive to the employee they do not react and maintain their cool while serving the customers to the best of their ability.• Customers prefer SAPPHIRE store while employee are less inclined to work in SAPPHIRE store• They do provide the store number• SAPPHIRE store prepare/make their dough themselves and supply it to the DIL store.• Most of the time SAPPHIRE store adheres o the 30 min or free delivery policy.• Complimentary items are provided free of charge in most cases• Issues are taken seriously and problems are escalated to higher authority• Work load on employee is slightly high• They have only regular offers for their customers• Franchisers prefer SAPPHIRE store over DIL stores• Most of the stores display the price including the tax DIL stores• Core competency is to increase profits and attain higher profit margins• More priority is given to generate income• They focus on the business aspect and less to the consumer feedback/suggestions• They are mostly insincere in maintaining relationships with call centers, and support agents.• It maintains average relationships with third party deliver partners such as swiggy, zomato, food panda etc.)• It is comparatively harder to maintain reasonable amounts of profits due to poor customer relations• Customers are not kept informed about the delays or any problems in the kitchen• Employee are empowered and there is a zero tolerance towards abusive customers• Employee prefer to work in DIL store as they have more freedom and flexibility• Doesn’t provide store number to customers• They always buy the dough from SAPPHIRE store and don’t make their own dough• Rarely DIL stores abide to the 30 min or free delivery policy• Complimentary items are rarely given to customers• Issues are not taken very seriously and rarely escalated to higher authority• Work load on employees is slightly lesser• There are special offers given to customers only in DIL stores to attract more customers (unlimited [email protected])• There is less preference to franchise in DIL stores• Few stores display the price including the taxSimilarities between SAPPHIRE and DIL stores? These two different franchises come under the pizza hut umbrella name.
? Terms and conditions for both stores are standard according to the pizza hut policies? They have made sure that the divisions of stores under these franchises are kept under wraps and the public are not privy to the information.? The product lines are similar in both stores with a pan India menu? Since DIL stores buy the dough from SAPPHIRE stores the quality of the base are same? The vegetables used are bought in bulk and so the standard is maintained in all the stores? All the stores of pizza hut uses only mozzarella cheese ? All the stores of pizza hut uses only wheat crust? Working hours of all the stores across India remains the same (11am-11pm)? Dress code is similar in pizza hut across India? Pizza hut is known for its pan crust pizzas since they use pan to bake pizza across all stores? Designation/post are standard in all stores? Women are empowered and every store has women employees? Birthday party option is available in all dine-in stores of pizza hut irrespective of SAPPHIRE or DIL store.? In all pizza hut dine-in stores the pizza are served and there is no self service.? They stop taking orders after 10:50pm in all stores in India? They take orders for that particular day only? All pizza hut stores are tied up with PepsiCo to serve its beverage products? Salary paid to the employees under both SAPHIREE store and DIL store will remain same for the respective designation.Pizza hut entrance into the emerging market of IndiaPizza Hut entered India in June 18, 1996 with its first restaurant opened in Bangalore though with police protection amid threats and tensions caused by Karnataka Rajya Raitha Sangha (KRRS), farmers’ association and some pro-vegetarian groups. Since then it has captured a dominant and significant share of the pizza market and has maintained an impressive growth rate of over 40 per cent per annum. Pizza Hut now has 95 outlets across 24 cities in India; and employed nearly 4,000 people by end of 2004.
Yum! has invested about US$ 25 million in India so far; this is over and above investments made by franchisees. Yum! Brands Inc is the owner of the Pizza Hut chain worldwide. A Fortune 300 company, Yum! Brands own Kentucky Fried Chicken, Pizza Hut, Taco Bell, A;W and Long John Silver’s restaurants worldwide.
Yum! Generated more than US$ 25.9 billion in worldwide sales in the year 2003, and has more than 33,000 restaurants in over 100 countries.According to Yum! Restaurants International, India is amongst the top five growth markets for Pizza Hut. Pizza Hut is also experiencing double-digit growth in India and hence is confident about expanding its operations in India.Pizza hut as a multinational company has had to adapt and change to the indigenous taste and preferences of Indian customers while also keeping the prices low/affordable.
This has led to creation of an Indian-ised menu with vegetarian/jain and local ingredients and spices combined with a few international items.Pizza hut has rapidly expanded and now currently there are around 251 stores only in India which includes Bangalore, Chennai, Mumbai, Pune, Hyderabad, Kolkata, Delhi, Noida, Lucknow, Jaipur, Agra, Jallandhar, Ludhiana, Mohali, Amritsar, Chandigarh, Bhuvneshwar, Indore, Bhopal, Pune, Nagpur, Gurgaon and many more.How pizza hut works in IndiaMenuDine inTables are arranged similar to a restaurant and waiters come and take your order and serve the food.Take awayOrders are placed through the online portal https://online.pizzahut.co.inOr you can walk in directly to a store and order for your foodOr you can contact them on the customer care number 3988 3988.Or you can use the pizza hut mobile appHome deliveryYou can order through the portal https://online.
pizzahut.co.inOr you can walk in directly to a store and order for your food and ask it to be delivered to an address at specific time on that particular dayOr you can contact them on the customer care number 39 88 39 88.Or you can use the pizza hut mobile appYou can use third party aggregators like swiggy, zomato, food panda etc for orderingMost of the out of trading area (OTA) are covered by third party aggregators.Basic rules for ordering pizza Minimum order should be at least of RS 200 and above.
At least 1 pizza or magic pan set of 4 is minimum requirement for delivery. Since Margarita pizza was introduced as first pizza in pizza hut and even if a small size pizza is ordered they will deliver it.Minimum trading area is in and around 3 km and anything more than that has to be done through third party aggregatorsUnder the box of four vegetarian or non-vegetarian all four have to be ordered anything less won’t be delivered.
Two offers or coupons can’t be clubbed together in a single order.Coupons are not applicable on Thin Crust Pizza, Beverages, Magic Pan or box of four vegetarian or non-veg. Also any Meal Deals, combo meals, or any discounted meal offers don’t have coupon application.Most of the coupons work on À la carte menu onlyAny additional topping added will be charged accordingly irrespective of removal of topping that pre existed.
Customers are provided the option of availing HALF n HALF pizza and it must be ordered in store for dine in and for take away or for home delivery it must be ordered calling call center. Some best offers provided to ameliorate the value of the brand All HAL employees were given discount if they had displayed their ID card in the Pizza hut since they had worked hard in producing TEJAS MK1 aircraft.And all women were given free pizzas for those who had SINDHU or SAKSHI in their name customer had to display their valid ID proof to claim free pizza since PV SINDHU and SAKSHI MALIK had won silver medal and bronze medal respectively in 2016 RIO Olympics. Current Famous OffersBuy one get one free/ bogo offerIt is mostly offered on Saturday and SundayIt’s valid only on À la carte menu and only on medium size pizzaHighest priced pizza under this offer is taken to be the payable oneIn case of adding cheese max or stuffed crust pizza to the pizza, the free pizza cannot avail the same additionThe payable pizza must be from signature or supremeDon’t cook WednesdayOffer is valid only on medium size pizzaPizza should be selected from favorite or signature or supreme Not valid on thin crust and magic pan pizzasWow take awayValid on all medium size thick crust pizzas Only specific stores have these offers which come only under DIL storesHalf n half pizzaThis is a kind of pizza where one can select 2 different types of pizzas which are combined into one pizza and this can be ordered which will be produced under the special request by calling the customer care support or by calling the store.Types of crust available Thick rust/ thin crust/ stuffed crust/ cheese max crust.Only thin crust pizza has 8 slices and thick crust pizza has either 4 or 6 slices.Crust and Cheese used The cheese used is mozzarella cheese which is the top grade cheese which is available in India.
Crust is made up of wheat which is considered to be very healthy compared to Maida crust. Upgrading of pizzaUpgrading to stuffed crust or cheese max will charge customer around rs 120.Any additional topping on the pizza will vary from rs.70 to 120 depending upon the topping selected from vegetarian or non vegetarian.30 minutes or freeOrder of 4 or more Pizzas qualifies as a bulk order which is not eligible for service promise of ’30 minutes or free’.Maximum Pizza Hut liability for any order delay is Rs.300.
’30 minutes or free’ promise is eligible only till the first barrier point (security guard/reception etc.)Pizza Hut reserves the right to withdraw the service promise without any prior information.’30 minutes or free’ promise is NOT APPLICABLE on New Year’s Eve, public holidays, religious festivals, rainy day and Wednesdays due its 50% OFF offer.The service promise may be withdrawn temporarily in view of difficult operating conditions for delivery, to be announced at the time of order taking.
The offer is valid for home delivery onlySalary structure Dine in/ take awayThe clients of SAPPHIRE store and DIL store at store will receive around 5lakh per monthThe area coach of the stores will receive around 2lakh per monthEmployees who work in dine in stores as full timers (8 to 9 hours) will be paid RS.15 thousand per month as take home salary.Employees who work in dine in store as part timers (4 to 4 ½ hours) will be paid RS.9 thousand per month as take home salary. Those who wish to work for 12 hours stretch every day will be paid both full time salary as well as part time salary.
People who work post 5:30 pm at least till 8 PM will receive petrol allowance of 1000 rupees.Employees who work as part timers will not come under ESI or PF benefit.Manager of the store will receive 28 thousand per month as take home salary.
Assistant manager will receive 22 thousand per month as take home salary.Riders will receive RS.15 thousand per month for those who work as full timers and RS.9 thousand per month for part timers as salary, salary is slightly less to the riders because they receive tips as incentive from customers which will add RS.5 to RS.8 thousand extra to their salary. The salary will be calculated from 21st of the respective month to 21st of the next month and the salary will be released by the 9 or 10th of every month.
Petrol or travel allowance will be paid on 24th of the every month.If any incentive earned for making customer upgrade their pizza to cheese max will be paid either along with salary or with the travel allowance.Customer care service/call centerSalary to the head of the manger or the head of all process is around 1lakh per month Client of SAPPHIRE store and DIL store at call center will receive 75 thousand per monthSalary paid to the manger is around 25thousand per monthAssistant manager will receive 15 thousand per monthQuality analyst will receive 13 thousand per monthCoordinators will receive 11thousand per monthTechnical support head will receive 15 thousand per monthAssistant technical support will receive 9 thousand per monthQuality analyst will receive 12 thousand per monthEmployees who work as part timers will not come under ESI or PF benefit.If any incentive earned for making customer upgrade their pizza to cheese max will be paid either along with salary or with the travel allowance.
The salary will be calculated from 21st of the respective month to 21st of the next month and the salary will be released by the 9 or 10th of every month.Petrol or travel allowance will be paid on 24th of the every month.Business Rivalry or competitorCustomers are usually switchers and change between Pizza hut and Dominoes Pizza and very few people are brand loyal. Depending upon the price, offers, trading areas, crust and types of pizzas, time of delivery and the way of resolving the issues people change their preferences.Benefits of Pizza hut entering India1. Promotion of technology and digital growth in India2. They use domestic factors for production (land, raw material- vegetables, flour etc) which creates returns to factors which accrue to India and only the profits go abroad.
3. Generation of employment in all places of outlets with other auxiliary industries/business create employment. (IT, BPO, call centers)4.
Provide various employments with flexible timings to employees5. Betterment of employees is given heed, since its hourly paid employment efficiency and quality of work improve as you are rewarded according to your work (motivation/ morale).6. Labor welfare is provided to the employees such as petrol allowance, food coupons, gift coupons etc.7. They contribute a lot to the tax bracket and one of the major tax payers in India as they are a large MNC contributing to growth of India.8.
They improve the employee’s ability to communicate especially in the English language and spoken English. Also the behavior and lifestyle is improved from dressing sense to food, language etc are learnt in the organization.9.
They provide around the clock service (11 am to 11pm) with delivery services also.10. Fulfilling hunger in India since 1996, they were the only ones to provide home delivery and many offers which many other organizations have followed suit.Resolutions and escalation of Problems1. Time delay – 80% of the time strict action is not taken and the time limit offer is not enforced strictly.2. Cold pizzas – usually the delivery person collect the money first before delivering the pizza to avoid the Rs.
300 compensation for cold pizza.3. Rider rude – the manager of the store is in charge of the riders and reassures the customers that strict action will be taken against the erring rider.
4. Wrong order – usually the pizza is replaced with the correct pizza or the correct order.5. Foreign substance – this is escalated and there is an immediate replacement of the order with compensation.6. Veg and non-veg issue- this is also escalated and treated very seriously with immediate replacement and offers to negate the mistake and calm the customer.
7. Less toppings- the manager assures the customer that the next order will be with better topping and apologies.8. Less cheese- they will sincerely apologies and promise compensation for the next order.9. Short change- they either convince the customer to come and collect it from the shop or they will provide it the same day or the next day.10. Seasonings, ketchup, tissue paper not provided- manager apologies for the inconvenience and convince the customer to eat the pizza without the above necessities as it will take time to get the same.
For problems to be raised seriously one has to write an email to the client or the Area Coach , who will take up the matter and provide an appropriate solution or decision based on the facts available (internal audit).Grievance of employees in pizza hut1. Rider – during the peak hours the riders are worked to the bone with a flood of orders to be delivered. Riders are the scapegoats and take all the blame from customers for any delay or problem with the delivery.
E.g. one of the riders stated in an interview with us that he was reprimanded by a customer every day and once was beaten up by one of the customers due to order delay, but no actions were taken by pizza hut since it was a Sapphire store.2. Waiters – they have a hard time in explaining the contents of the menu (types of crusts, sauce, sides etc) and the bill as customers order based on the cost printed in the menu which does not reflect the tax (more than 20%) which is shown in the bill.
3. The Manager and Assistant Manager – they are swamped with orders in peak hours and even if the capacities to deliver on the orders are exceeded they are forced to accept new orders by Area coach.4.
Area coach- the area coach will have pressure of maintaining multiple stores and to make profit in order to run the business and also have to attend escalated issues and solve them.And also has to pay rent for particular store and pay the franchise bill.5. Customer support executive (CSE)- due to high no of call flow during offer period, and no breaks are given during peak hours of sales this will create the high job stress.
6. Team leader- has to make sure all employees are on call during peak hours, and has also to make everybody to log in on time so that they won’t face dead calls or drop calls.7. Coordinator-will have to resolve all issues that occur between CSA and store or customers, and also has to update failed orders, wrong orders, swiggy, zomato ect.8. Quality analyst- has to verify every call received by CSA and has to give feedback to CSA if any improvement is needed.
(stressful part is listening to calls with keen which received every day)There are many problems faced by employee in pizza hut but there are systems and measures in place to protect and empower the employees to be successful and improve the organization.ConclusionPizza hut is a huge multinational chain of restaurants that has expanded through franchisee system which is why it has grown so rapidly and expanded into various countries. Franchising has allowed for each and every store of pizza hut to be separate and independent with the parent company only providing the brand, rules/standards to be followed (for a fee – royalty). I have through the study shown how there are two types of franchisees and how they are similar to and differ from each other.Interacting with the employee of pizza hut we can understand of the internal functioning and processes in pizza hut – the welfare policies, problems faced, how pizza is made and what raw materials are used etc.The customers are happy with pizza hut’s service and some are expecting better quality in terms of amount of cheeses, quantity of the toppings and the delivery time as promised.