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Fast Food Industry review of Pizza Hut


A major transformation in business management is the fact that organizations are trying to optimize every part of business. There has been a keen concentration into every aspect of business which can give the organization a cost or quality advantage over its challengers. Effective Supply chain management (SCM) is capable of both the previously listed advantages. If we look into the various components of SCM and review their significance in the context of the above mentioned we find that they are quite significant and capable of obtaining price and quality advantage over opponents.

In this research the emphasis will be to study various factors influencing the supply string management in junk food industry by referring to Pizza hut. The aspects associated to price quality and client satisfaction will be covered through this research. The fast food industry has seen huge transformations in the recent past; the affect of these transformations on the resource string management is also reviewed in this research.


As we know that supply chain manages the entire materials from suppliers (Suppliers of raw materials to the organization) to sellers and distributors to the customers. There are many disciplines involved with this system. for example the supplier relations management, inventory management, syndication system, retail management, invert supply string management. It has been detected that action in one discipline can effect the performance of the whole chain and likewise the performance of the business. (T. J. Peters 1982 Riddalls 2002).

More plus more organizations / establishments are identifying the importance of supply chain management. In terms of research there are three most researched issues in the whole supply chain management, they are;

Information movement through resource chain

Inventory / warehouse Management

Operations Management (queuing system)

The fast food industry is one of the very most competitive industries. The competition majorly depends upon price, quality and service (which are core aspects of Supply String Management). Hence there is immense pressure on all the organizations in the fast food industry to keep carefully the three aspects analyzed above with their supreme best.

As junk food industry is one of the very most emerged industries in the recent past, the supply chain has seen huge transformations in this industry. The industry continues to be emerging so as the transformations in the supply chain management of this industry. Hence this analysis helps the learner identify and understand the factors driving change and the factors influencing the source string performance.

Few of the research questions and research objectives are underpinned;

Research Questions

This research can not only make an effort to present the analysis associated with the title of the research but will also try to answer the questions pointed out below;

What is the main meaning of resource chain?

What is the importance of Supply String Management in junk food industry?

What will be the major the different parts of Supply Chain Management?

How significant is information writing to keep carefully the supply string effective?

What factors effect / drive resource chain management in junk food industry?

How is demand forecast & supply managed effectively?

What is the impact of source string management on overall performance of Pizza Hut and in creating brand name for Pizza Hut?

How does Pizza Hut take care of their SC effectively?

Similarly the research has set few objectives for itself to achieve throughout this study. The research objectives are described underneath;

Research Objectives

Aligned with research questions we have set few goals because of this research. They are posted underneath;

To understand the resource chain tactics in fast food industry

To understand the difference between SCM practices in junk food industry and in other establishments (processing & Service sector)

To prove that effective main competencies can result in competitive advantage

Identify significance of various celebrations in the supply chain on the performance of the supply chain

To understand the service level impact on the supply chain

The company / company chosen because of this research

Pizza hut was were only available in the entire year 1958 by two brothers Dan & Frank Carney. This was an idea advised by the common friend that they agreed to. In 1972 they launched corporate strategy. In the mid 90's the profits of Pizza Hut were declining. Hence Dan & Frank Carney thought of selling out the company. In the entire year 1997 Yum! Brands acquired pizza hut and happens to be (Pizza hut) under Yum! Brands

Highlight of Pizza hut is its variety in Pizza, garlic breads, pasta and breadsticks. To be able to meet the development of the talked about (menu) products pizza must co-ordinate all the suppliers of vegetables, chicken and bakery and work in coordination with them. Keeping this aspect efficient is the key success factor of Pizza Hut. As we realize that if a business can manage its center competencies effectively they can surely act as competitive edge for the business.

As the elements for various products of pizza hut are bought through various suppliers from different parts of the globe. There must be proper communication to keep the supplies and demand under check. To keep this aspect effective the business has hired Total Quality Management (TQM) process.

The strategic coverage of Yum! Brands involve the suppliers to comprehend their role and impact in the entire performance of the organization. This will keep the supplier relationships management aspect in place for the organization.

Pizza Hut has restaurants plus they also deliver their products to customers place. The source chain in such cases differs. If it is offered at the restaurant then it usually shortens the source chain of course, if the product (pizza, pasta etc), then the supply chain has transportation included in the supply chain.

Both these aspects will be mentioned in detail in this study

Limitations of the study

As the research targets the supply string management of junk food industry, there could be few distinctions in the source chain then your supply string of other market sectors. This research will not specifically answer questions which can be from the industry / concentration of this research.

The supply chain of junk food industry keeps changing in short intervals. We've focused this research on supply string of Pizza hut. This may answer the general questions with the supply chain of junk food industry but may well not answer the precise questions of other organizations.

Literature review

Supply chain plays a critical role in maintain the organizations brand image and service levels in the market. On this section we will discuss Supply Chain Management (SCM) generally speaking first and then will confine it to the junk food industry.

Supply string is the word used to explain the parties mixed up in process of getting together with customer demand. The get-togethers mixed up in supply chain are


Manufacturers / producers




(Riddalls, C. E. , Bennett, S. , 2002) (Stanley E. Fawcett and Gregory N. 2004)

A brief of the role in the resource string in underpinned;

As we realize that supply string management is a discipline that manages and controls the movement of information throughout the various departments to meet the customer requirements. The supply chain starts off from the extreme beginning of the developing process i. e. acquiring the recycleables from the suppliers or in other words choosing the suppliers and ends at the extreme end of the creation process i. e. the clients. (Raghavan, N. R. S. , Viswanadham, N. , 2001)

The members or functions of the resource chain are briefed below;

Suppliers: suppliers are a substantial get together in the resource chain. The raw materials are supplied / received through this source of information. In terms of quality of materials / products the suppliers are held responsible. The price of the product is dependent upon the price of the raw material as well and the supply of raw material will influence the business's ability to meet up with the customer demand at the right time. Hence we can say that suppliers have a great effect on the price tag on the product and company's ability to meet up with the customers demand promptly. (Riddalls, C. E. , Bennett, S. , 2002)

Manufacturers / Manufacturers: They are the users who convert recycleables / semi done goods to done goods. The creation process is significant as the business judges the quality and traits of the procedure in this stage; hence manufacturers also effect the quality of the merchandise. (Riddalls, C. E. , Bennett, S. , 2002)

Distributors: They are people who are responsible to make the product reach to the marketplace (vendors). The vendors can be also termed as marketing intermediaries. There are many aspects associated with marketing of a product and choosing the right marketers. The reach of the distributor will always be directly proportional to the option of the product in the market. (Riddalls, C. E. , Bennett, S. , 2002)

Retailers: These are individuals who are by the end of the supply chain. In other words these are the people who sell the product to the customers (supermarkets, stores etc). They are one of the significant people in the supply chain as they are in direct contact with the clients. They represent the merchandise on behalf of manufacturer to the customers. The demand and comments from customers can be examined at this level. (Riddalls, C. E. , Bennett, S. , 2002)

Customers: These are the end users of the merchandise. Customers were not considered as a part of supply chain, however the modern day methods and analysis has added customers in to the supply chain. (Riddalls, C. E. , Bennett, S. , 2002)

The significance of these functions in the supply chain varies in context to industries.

Few of the conditions involved in SCM are underpinned;

Inventory size

This helps the business decide the total amount (size) of inventory to be purchased. This is one of the significant aspects in the junk food industry as this helps the business not only order the right volume but also meet the customer's needs with minimal resources possible. (Raghavan, N. R. S. , Viswanadham, N. , 2001)

Replenishment Business lead Time

This refers to the time between placing an order and acquiring the organic material. Usually lead time is usually regarded as an entity which makes the supply string ineffective (loss in supply chain). (Raghavan, N. R. S. , Viswanadham, N. , 2001)

Stock outs

Stock outs are incredibly common atlanta divorce attorneys trade. This is a situation that arises credited to miscommunications in source chain parties, insufficient examination, bad demand and sales forecasting.

Safety stock

This is the surplus stock that a firm maintains to manage demand fluctuations. The safe practices stock is managed at the cheapest levels as the majority of the businesses are useful in sales forecasting.

Reorder Point

This is a spot in inventory levels wherein the firm feels the need to order more inventories.


Fast food is described food which may be cooked properly easily and can be ingested quickly. There are various food chains across the world, which are well-known for junk food.

If we check out the background of the junk food industry, the root base of junk food are from 1920's and from 1950's this industry found a rapid development. There are multiple reasons for this change in food habits of people. Individuals were busy and did not find period to cook food or even to wait for extended hours after placing your order food. There arose the word fast food. The Asians (Specifically Chinese language) are accountable for this term and industry. There is situated the trick behind the client anticipations. Customers expect food to be offered quickly, should be delightful and really should be healthy. In this particular circumstance all the celebrations of the resource chain play a major role in getting together with this expectation. (Tony Hines, 2004)

Few of the goals of supply string management in fast food industry are described underneath;

Supply string planning

This sets the chain route and the strategies associated with all the aspects of supply chain. This is the overall sketch of the source chain. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)


This is the process of selecting a distributor and managing healthy and profitable relationship with them. This also helps the business maintain quality with their products. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)

Inventory management

This process helps the organization maintain right level of stock in the business and eliminate stock outs with variant popular for the product. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)


This is a self-control that helps in ensuring right package design and minimizing the price by motivating the recycling process of packaging. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)


This is the process of holding the raw material, semi - done and finished goods. Effective safe-keeping and correct warehouse design can decrease the overall cost of the product (eliminates vehicles cost to a certain degree) and improve the availability of the merchandise. The other factors in this discipline are protection of the merchandise, storage space methods and locations of the warehouses. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)


This process refers to transport management of goods. This includes all the possible methods of moving goods in one location to another. The data maintenance are also one of them aspect. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)


This is referred to the use of technology in retaining all the disciplines of source chain effectively. The usage of softwares is a tendency in logistics management (CRM softwares). (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)

Customer Service and marketing

This refers to meeting the client objectives effectively and creating new opportunities through customer service. That is one of the major aspects that organizations are focusing in contemporary business community. (David Simchi-Levi, Philip Kaminsky and Edith Simchi-Levi, 2004)

The entire above mentioned are effective ways to stay proficient, exist and develop on the market. Therefore managing supply string effectively can help the business prosper.

There are few other associated principles which have an affect on the resource chain, one of these is Bull Whip Result.

Bull Whip Effect

This is referred to sudden upsurge in customer demand that makes the supply string to reconsider its strategy and rearrange the shares in the resource chain. This forces the management to include more stocks in to the system to meet the increased product demand. The Bull whip effect always flows backwards direction to the circulation of products. I. e. starting with realtor and ending it with the distributor of raw materials to the manufacturers. (Raghavan, N. R. S. , Viswanadham, N. , 2001), (Peter D Ball, 2006)

There are various reasons of Bull Whip Result; handful of them are talked about underneath;

Under - estimation of demand

Wrong sales report

Inefficiencies Lead time management

Miscommunication in the supply chain

(Peter D Ball 2006)

Hence we can say that effective communication (information circulation) in the supply chain is significant.

The fast food industry cannot store the stock (Raw materials) in advance. A lot of the products are fruit and vegetables and souses, which need to be fresh. Hence effective resource chain management is required.

It has been detected that the major concentration of almost all of the junk food chains is to enhance the service levels (quality of the merchandise and delivery time for you to the clients). Recently it has also been seen that in expanding countries such as India, Pakistan, Srilanka and others, the junk food industry is concentrating on the quantity and price factors. Once again this can be achieved through effective supply chain management.

Research methodology

Research methodology takes on a vital role in the results of every research. There are many aspects, which a researcher needs to consider, before during and after gathering data for a research. Several aspects are shown underneath and are mentioned in the context of the research. (Cooper, D. & Schindler, P. 1998)

Research approach

There are various research approaches possible. Handful of them are underpinned;

Inductive approach

Deductive approach

Qualitative approach

Quantitative approach

(Saunders, M. , Lewis, P. & Thornhill, A. 2003)

A quick of the above mentioned four is listed below;

Inductive strategy: The word itself indicates that this process starts with a spot and ends up adding information and few more points on the way through to making standard interpretations about the research subject matter. (Saunders, M. , Lewis, P. & Thornhill, A. 2003)

Deductive approach: This refers to an approach that starts with few ideas and ideas and tries to confine the topic in the framework of the study focus. That is one of the trusted approaches to reach to a final result in general studies to add more specific information to existing principles. (Saunders, M. , Lewis, P. & Thornhill, A. 2003)

Qualitative methodology: This approach relies on the existing theories and techniques. In other words this approach is dependant on the analyzed and proven methods. The available books is the major source in this process. That is called qualitative as the study results can become more reliable then in comparison to other methods / techniques of research. (Saunders, M. , Lewis, P. & Thornhill, A. 2003)

Quantitative methodology: This is one of the widely used research approaches. This process relies on a wider review and does not majorly count on the literature, instead will need a thought or theory from the prevailing literature and can research about it in the environment (area). That is one of the way used to make general interpretations about a principle or theory. The major ways of this research methodology are studies, questionnaire, interviews etc. (Saunders, M. , Lewis, P. & Thornhill, A. 2003)

The research way because of this research will not be restricted to any of the research techniques. We use all the strategies possible to keep this analysis effective. As there are various factors influencing the supply chain and the junk food industry is specific, hence we will try to emanate the drawbacks of various methods and will use all possible solutions to accumulate pertinent and result focused data.

Research Strategy

Research strategy for each and every research is significant. As we realize that this affects the results of the study, hence we have made a decision to formulate two questionnaires for gathering data. One will give attention to the management and the other will focus on the encounters of the customers. This will also assist in covering all the aspects in this research. Because of this research we will also contact few industry experts to analyse the interpretations and results of the study to keep it effective.

Data sources

There are various resources through which data can be gathered. The data for just about any research can be split into two categories. They are really;

Research specific data (Main data)

Supporting data (supplementary data)

The above two are explained in simple below;

Research Specific data

This is also called primary data. The term itself indicates that data is specific to the research. The info that is accumulated to answer the place research questions is known as major data. The major sources for gathering data in this category are interviews, concentrate groups, surveys, observations, questionnaires, telephonic interviews, etc (Bryman, A. & Bell, E. 2003)

Supporting data

This identifies the info that fills the spaces left by the primary data. As the major function of this data is to support the study, hence this is recognized as promoting data. This data is not research specific, instead is obtained from the available literature or various other important research. The major resources by which this data can be collected are academic literature, magazines, papers, internet, etc (Bryman, A. & Bell, E. 2003)

The data for this research will be collected through formulating two questionnaires and using two methods. First we will attempt to get hold of the management of Pizza hut through email and take their replies on the questionnaire; the second will be to carry-out an over-all survey in public to know about the client service (and associate it with the effectiveness of the supply chain). We will also make use of the secondary resources such as Internet to assemble pertinent data to help make the research effective.

Data Analysis

There are various aspects that a research needs to focus before, during and after gathering data for a research. These aspects help the researcher keep carefully the data effective in the context of the analysis.

Few of the aspects are listed below;

Validity: This refers to the relevance of variables in the study. As we know that there are many variables in a study. This aspects ensures that the data compiled should be relative to the research. In other words these aspects state that there should be inter-connectivity between your focus of the research and the data obtained. (Ghauri, R. & Gronhaug, K. 2005)

We will attempt to assemble relevant data and can avoid vagueness in data. The info obtained will be limited to the study focus but will also try to remain neutral to answer various other research associated questions.

Reliability: This aspect identifies neutral (correct or appropriate) and bias free results. In other words this aspect states that if the same data is utilized again for an identical research the results of the study should be similar. This also claims that there should be any biased interpretation or should be considered a favor for any person or organization through this research. (Ghauri, R. & Gronhaug, K. 2005)

We can not only stay neutral while interpreting the results and framing the results of this research, but will also send the leads to few skillfully developed to seek their view. This can get rid of the bias aspect from the research and will keep carefully the research effective.

Generalizability: This identifies the spectrum included in the study answers in resolving the overall issues. In other words the results of the research should be able to answer an array of real time issues. (Ghauri, R. & Gronhaug, K. 2005)

We will try to keep the results as general as possible and will also try to cover as much issues as you can.

Authenticity of data options: That is one of the significant aspects of any research. The data gathered should be from reliable options. The authenticity of data sources defines the potency of the research. (Collis, J. & Hussey, R. 2009)

We will attempt to gather data from authentic sources. As we've designed questionnaires and are gathering data through resources which can be reliable, I really believe we can surely promise the authenticity of data options.

Ethical Issues

This identifies the techniques used for gathering data. The moral issues are very significant for each research's credibility to the society. This consists of a code of conduct that areas that the methods used for data gathering and research should not include any method that is unlawful or unacceptable. The methods or results of the study should not harm anybody / company / industry. (Crowther, D. & Lancaster, G. 2009)

The methods used for this research will be chosen by keeping the above code of conduct in mind and can not include such methods which fall out of the code of carry out. We will attempt to keep the work honest and clear of any bias.











Background Reading

Research Proposal

Theoretical framework


Supply string management plays a significant role in managing resources and effective customer service regardless of industry. The junk food industry is customer powered and the service level plays a substantial role in creating targets with the customers. The fast food industry (Specifically Pizza hut) will be examined in the context of the source chain extensively and the study results will be framed.

We will analyze all the associated aspects and will try to cover all the issues under the focus of the study. We will keep the research bias free and honest to the extreme opportunity.

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