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Domino's first opened in the UK in 1985, and now has over 1000 stores across the country. Last year alone, they sold 90 million freshly handcrafted pizzas.

Domino's also have a focus on technological advancement - working to ensure customers ordering is quick and easy.

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Online Food Delivery comprises services which deliver prepared meals and food that were ordered online.

The Restaurant-to-Consumer Delivery segment includes the delivery of meals carried out directly by the restaurants.
The order may be made from platforms like Just Eat,  or directly through a restaurant website, e.g. Domino's.

The Platform-to-Consumer Delivery market segment focuses on online delivery services that provide customers with meals from partner restaurants that do not necessarily have to offer food delivery themselves. In this case, the platform (e.g. Deliveroo) handles the delivery process.

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Online Food Delivery Industry Statistics (in the UK)

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Online Food Delivery Industry Statistics (in the UK)

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Revenue in the Online Food Delivery segment amounts to £2,703 million in 2018. This is the 4th highest in the world, after China, USA and India.

Revenue is expected to show an annual growth rate of 10%.

The market's largest segment is the Restaurant-to-Consumer Delivery with a market volume of £2,300 million in 2018. This is the segment that Domino's operates in.

Source: Statista

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The UK's restaurant industry has experienced growth in recent years. Consumer expenditure on restaurants and cafes reached £88 billion in 2017.

This market makes up the largest proportion of the leisure sector revenue.

The quick service restaurant (QSR) sector is a significant contributor to spending, with 44% of consumers visiting a quick service or fast food restaurant at least once a week as of 2015.

Source: Statista

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Oxford Academic (Oxford University Press)

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Marketing Case Insight 8.1: Domino’s Pizza

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Pizza Hut is a that specializes in Italian-American cuisine, particularly pizza. The global restaurant chain company was founded in 1958 by brothers Dan and Frank Carney in Wichita, Kansas, and has since grown into one of the largest and most well-known pizza chains in the world.

The company in the sale of ready-to-eat pizza products and operates in the delivery, carryout and casual dining operates over 19,000 locations in more than 100 countries, including both company-owned and franchised stores with more than 3,50,000 employees. Pizza Hut is also an innovator in the fast-food industry, being one of the first to introduce online ordering and delivery services. Its commitment to providing delicious and affordable meals has helped it to remain a leader in the pizza industry for over 60 years. Today, Pizza Hut specializes segments around the world.
- To take pride in making the perfect pizza while providing courteous, helpful service at all times, striving to have every customer say that they plan to be back.
STRENGTHS OF PIZZA HUT

1. Diverse range of products

Pizza Hut's product portfolio includes a variety of popular pizza options such as pan pizza, stuffed crust pizza, hand-tossed, thin n crispy, dippin strips pizza, the P'Zone, bigfoot pizza, curry zazzle, and natural pizza. In addition to pizza, Pizza Hut also offers baked rice dishes, pasta, and other types of American and Italian pizza, providing customers with a diverse range of options to choose from.

2. Significant Global Reach

3. Leveraging technology to enhance its customer experience

Pizza Hut has to enhance the implemented several delivery technologies customer experience. These technologies include GPS tracking, mobile ordering, delivery management system, and contactless delivery. By utilizing these technologies, Pizza Hut can provide customers with real-time updates, optimize the delivery process, and ensure timely delivery.

4. Effective Sponsorship Strategies

Pizza Hut has used successful sponsorship , the by funding strategies to boost brand recognition and consumer loyalty. Pizza Hut has been able to connect with a large audience via sponsoring a range of international events, including sporting events, motion pictures, and festivals. Also to kindness and CSR business has shown its commitment have not only aided organisations that encourage literacy, disaster assistance, and education. These sponsorship programmes in the expansion of the Pizza Hut brand but have also boosted its standing with clients and the general public.

5. Innovation

Pizza Hut's innovation lies in its ability to adapt and introduce new menu items and technology to cater to customer preferences. This includes new crusts, online ordering, and even experimenting with robot delivery.

6. Region Sensible Menu

Although the pizzas they serve are often the same across all of their franchises, they also sell various culinary items tailored to the regional cultural preferences.

WEAKNESSES OF PIZZA HUT

1. Heavily Dependent on US market

Pizza Hut's business heavily relies on the US , as well as a notable market, with a significant portion of 41% of its total sales and also 6852 franchises out of 19,000 located in the US market share and brand recognition in the country. Such reliance on 1 market may makes the company vulnerable to economic downturns, competitive pressure, limited growth opportunities, and changing consumer preferences.

2. Stagnant revenue growth

The yearly sales of Pizza Hut were $12.106 billion in 2014, and they were $12.955 billion in 2021, may indicate challenges in keeping up with changing consumer preferences and increased shows its inability to significantly increase its revenue competition. This could impact the company's ability to maintain its market position and profitability over the long term.

3. Sales in Africa & India is low

4. High Employee Turnover rate

Pizza Hut has a high employee turnover rate of 36% as per the research report, which affects its productivity and quality of service. It also incurs high training and recruitment costs.

5. Brand hopping

The food and beverage business has expanded as a result of competitiveness and the abundance of options. Pizza Hut's this by enhancing their menu selections, marketing initiatives, and market share has declined, which can be linked to factors including shifting consumer preferences and inadequate marketing tactics. Pizza Hut can address to reduce brand churn. customer service

6. Dependence on Third-Party Delivery Services

While Pizza Hut has its own delivery system, it on third-party delivery services like , which can negatively impact also relies Uber Eats and DoorDash. This dependence on third-party delivery services can affect the quality of service and delivery times customer satisfaction.

OPPORTUNITIES FOR PIZZA HUT

1. Expanding into Catering Services

Pizza Hut can expand its services to include catering for events such as parties, corporate events, and weddings. According to Research and Markets, the global catering services market is expected to grow by $206.43 billion between 2021 and 2025.

2. Developing Loyalty Programs

Pizza Hut can develop loyalty programs to retain existing customers and attract new ones. According to a study, 57% of consumers are willing to spend more with a brand that they are loyal to.

3. Partnerships and Collaborations

Pizza Hut can collaborate with other brands and companies . For example, Pizza Hut has partnered with Beyond Meat to offer a plant-based meat pizza. Such to expand its reach and tap into new markets collaborations can help Pizza Hut to stay relevant and innovative in the fast-food industry.

4. Expansion into Developing markets

Growing middle classes and higher disposable incomes in emerging markets . Pizza Hut can adapt to the local present opportunities for Pizza Hut to expand culture, expand operations, leverage technology, and engage in social responsibility programs to enhance customer experience.

5. Using data analytics

Pizza Hut can increase sales and revenue by using advanced data analytics to better understand customer preferences, optimise menu options, and improve targeted marketing campaigns.

6. Social responsibility

By engaging in social responsibility programs like supporting local communities or reducing their environmental impact, Pizza Hut can improve their brand image and attract more customers.

THREATS TO PIZZA HUT

1. Intense Competition

In the pizza industry, there are numerous competitors fighting for market share. Pizza Hut's like Domino's, that provide new products, aggressive growth and profitability may be impacted by rivals Papa John's, Little Caesars, and other nearby and regional pizza businesses pricing, or superior customer service.

2. Significant Portion of sales from China

3. Decline in QSR Industry

4. Hike in raw material price

5. Franchise Model

6. Consumer Preference is changing

The shift towards healthier, fresher, and locally-sourced food options is a threat to Pizza Hut's sales and menu offerings, especially among younger generations. Additionally, the rise of online ordering and delivery services may impact Pizza Hut's market share and operations.

CONCLUSION

In summary, Pizza Hut such as heavy dependence on the US market and high has several strengths including their diverse range of products, global reach, and innovative strategies. However, the company must also address weaknesses employee turnover rate.

To maximize their potential, Pizza Hut can take advantage of opportunities such as expanding into catering services and utilizing data analytics. Additionally, the company should be cautious of threats such as intense competition and rising costs of raw materials.

Liked this post? Check out the complete series on SWOT
By doing so, Pizza Hut can position themselves for continued success in the dynamic QSR industry.

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Pizza Hut is a global restaurant chain that specializes in Italian-American cuisine, particularly pizza. The company was founded in 1958 by brothers Dan

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Papa Johns Pizza is an American Pizza Chain which has operations currently in all parts of the world. The pizza chain was established by John Schnatter in 1984 who started in a very modest manner using just basic pizza making equipment. However, within a short span of time, the personalization of the pizzas made by Papa Johns made it hugely popular in the US because they were quite different from other mass customized pizzas.

The company later expanded to countries across the world and today they have outlets in various parts of Europe, Asia, Middle East, Latin America, Australia, UK and North Africa. Papa Johns Pizza is also a publicly traded company today and it registered an annual turnover of USD 1,5 billion and currently has around 20,800 employees.

Strengths in the SWOT analysis of Papa Johns Pizza

Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Papa Johns Pizza :

Natural Ingredients: Quite unlike the other pizza companies in the US, Papa Johns is known to use freshly prepared ingredients in their pizzas. The veggies and toppings are also freshly cut and processed and each pizza is made individually. The veggies used like peppers, tomatoes or jalapenos are sourced freshly and hand cut so as to give it a homemade feeling.

Pizza Family: Papa Johns refers to itself as a pizza family and not a pizza company. This essentially means that all people associated with Papa Johns come in not just because they want a job but because of their love for cooking and more specifically pizzas. The company also has a work culture which is not about hierarchies but about warmth and affection where the workplace seems like a family.

Differentiation: Papa Johns follows a quality differentiation as is evident from their tagline " Better Ingredients Better Pizza ". The company states that they follow stringent quality guidelines in each step.and even their ingredient is of superior quality.

Worldwide market: Papa Johns has a presence in most countries across the world. Currently, they have a total of more than 5000 outlets with 3281 pizza joints in the US and 1159 joins in other parts of the world. The company has maintained its momentum and has been looking forward to opening more outlets in other parts of the world.

Passion for pizzas: John Schnatter, the founder of Papa Johns Pizza started the business because of his passion for pizza and this is reflected in every strategy of the company since he has been personally involved in the strategy exercises.

Weaknesses in the SWOT analysis of Papa Johns Pizza

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of Papa Johns Pizza are:

Inability to reach volumes: Papa Johns sells around 4000 pizzas per week in some of its top-selling outlets. However, their machinery is not highly updated and often they are unable to meet the demand on time.

High prices: In comparison to their competition Papa Johns price their pizzas higher.The differentiation of quality os there but many customers feel that it may not be strong enough for them to pay the higher price preferring to opt for lower-priced products.

Poor margins: Most of the pizza outlets make their money from mass cooking and low-quality mass procured ingredients. Both these are not possible for Papa Johns because of the quality differentiation. Thus in spite of the high prices, Papa John is not able to keep their margins sufficiently high.

High cost of delivery: The distribution channel management in pizza delivery is a critical task and many competitors use this as a core differentiator. Managing the order processing and delivery of time needs a lot of technology and manpower investment.

Low shelf life: The pizzas have the low shelf life and cannot be stored.Thus inventory management becomes a huge challenge when it comes to perishable items like pizza. The unused inventory may just have to be disposed of.

Challenges in differentiation: There is not much of scope to differentiate a pizza in terms of taste.So the company has to rely on promotion and advertisements to differentiate from the competition.

Opportunities in the SWOT analysis of Papa Johns Pizza

Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:

Growing demand for fast food in semi-urban markets: With the popularity of social media and internet fast food like pizza which was once restricted to urban markets and cities have now also become popular in semi-urban markets and small towns.

Steep growth potential in emerging economies: There is a steep growth potential for fast food in emerging economies. The recent trends indicate that cities in economies like India and China are some of the biggest potential markets for fast food like pizza.

Threats in the SWOT analysis of Papa Johns Pizza

Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:

Competition: The main competitors of Papa Johns are Dominoes and Pizza Hut. Because of their vast distribution and presense in the market, they are a major threat to Papa Johns Pizza.

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SWOT analysis of Papa Johns Pizza - Papa Johns Pizza SWOT analysis

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This is the SWOT analysis of Papa Johns Pizza. Papa Johns Pizza is an American Pizza Chain which has operations currently in all parts of the world. The pizza chain was established by John Schnatter in 1984 who started in a very modest manner using just basic pizza making equipment.