Operation Innovation
Pizza Hut-São Paulo, in Brazil, was one of the first in the world to cancel the orders through call centers in October 2013.Since then, the company implemented the order fulfillment on the internet and achieved 100% conversion to online orders.Another example of operation innovation was in the express channels in the food courts. Pizza Hut-São Paulo changed the offer of products and innovated with the launching of larger individual slices (Super Fatia) to speed production and service. Retaining a favorable comparison in volume and appearance with the individual and original pizzas. It was a success and extended to other markets, including outside Brazil.
My Motivation
This is a passion project/mindmap.About Pizza Hut and about the person who implemented many operational features transforming Pizza Hut - São Paulo in Brazil into a benchmark for the company in the world, Jorge Aguirre (my father).Nowadays, he is a master franchisee of Pizza Hut in São Paulo and owns 46 stores (including the Pizza Hut with the largest revenue in the world, in Guarulhos Airport).It is worth to mention that many of the operations features mentioned in this mindmap are related to Pizza Hut-São Paulo, in Brazil. Despite being a franchisee, operations can vary through other franchisees around the world.Pizza Hut is one of the flagship brands of Yum! Brands, Inc, which also has KFC and Tacobell under its umbrella. Pizza Hut is one of the world's largest pizza chain with over 15,000 stores in 130 countries.Mission: "To be the best pizza for every pizza occasion".
Quality
Quality at the source - The importance of Food Safety from Farm to ForkFarm: Product Standard and Wholefood standard programsProcessing: Supplier Audit Standards, Auditor Certification and Approval and PremiumsDistribution: Supplier Audit Standards and Auditor Certification and ApprovalDelivery: Supplier Audit StandardsRestaurant: Food Safety Facility and Equipment Standard, Food Standard Compliance Check, Restaurants Food Safety Standards, Restaurant Pest Standard.The quality assurance standards guarantee brand protection, food safety and the highest quality products."Trust in every bite" is a food safety program that minimizes the risk of foodborne illness to customers.
aThe History
Recommendations
1- An urgent reccommendation is to the franchisees bargain with the franchisor for more supplier options of mozarella and flour. From one side, one supplier can be more cost efficient and Pizza Hut-São Paulo can have a better quality control. But from the other side, it is extremely risky to have just one supplier in Operations. In unexpected situations such as a fire in the factory or undercapacity in the supplier, the company would not have any alternative and should close the stores.2- More product innovationThe company shoud develop other category of products always associated with the brand's profile.3- Queue ManagementPizza Hut-São Paulo receives a lot of complaints regarding the wainting time on queues mainly in peak hours. The company should try to divert customer's attention when waiting, properly inform customers what to expect, provide reasons for the long queues and last but not least keep training the servers to be friendly.
Customer Experience
Some important aspects of customer experience are service, product and installations.In São Paulo, Pizza Hut is extremely serious with the execution of the products and customer service. Its mission is "Every client comes out satisfied".A great service is an important feature of customer experience, so continuous invesment in employees training is one of the ways to pursue customers satisfaction.Another way to try to achieve customer satisfaction is trough the installations. Regarding this, Pizza Hut-São Paulo comes running the remodeling of stores with changes of layout and visual identity and decor.
Process Map
Forecasting
The company works in Just in Time method and order direct suppliers according to demand.There is a Central of Supply (that works like a warehouse) in which the suppliers send the products to the logistic operator.Pizza Hut stores make the orders and receive them two or three times a week from the logistic operator.The orders are made based on sales history and sales forecast (according to the marketing calendar).It is a push strategy in which the main purpose is to prepare the company before the customers orders.Jorge Aguirre told me that one of next steps is to implement replenishment tools, automatic orders of goods based on existing production parameters.
Supply Chain
Main raw materials and 80% of the volume and cost of products come from International Pizza Hut and must be purchased in specific suppliers (indicated by the franchisor, Yum! Brands). Most of the raw materials are made especially for Pizza Hut.According to the rules set by the franchisor, mozzarella and flour can only be bought from one supplier.Yeast is the only product imported from the United States, it is another unique product made only for Pizza Hut.Prices of the inputs are negociated by a Supply Chain Commitee, composed by the franchisor and some franchisees.
Take Aways
The operations management depicts the performance of each individual unit that is participating in the overall aceleration of the engine of Pizza Hut.The operations at Pizza Hut have multifaceted situations.The each component working in the process cycle of the business have an important role in satisfying the customer and lead the company to achieve its mission.
Corporate Responsability
Social Programs
Since 1984, Pizza Hut has nutured a love for reading thourgh a program called BOOK IT! The company believes that education is a key to success and educational success is rooted in childhood reading skills.In 2013 Pizza Hut-São Paulo instituted the Activity Program aimed at the recolocation of professionals who are already over 60 years old. In addition, the initiative is based in one of the most important factors for the quality of the human being, mental health. And this, in turn, only happens when the person finds himself active, exercising his gifts, applying his experience, exercising creativity, teaching, learning, communicating, feeling useful and productive.
Yum! Brands encouraging Leadership
Yum! Brands believe that every employee is a leader responsible to generate high performance to each of its business. The company offers leadership courses and tools in its businesses.For Pizza Hut in the US, the Pizza Hut Academy develops and delivers courses to employees to develop their leadership and operational skills.In Pizza Hut-São Paulo, Brazil, the employee is seen as a partner. They are continuously estimulated to participate in decisions, give contributions and especially their remuneration is associated with the sales in the stores.