Pizza Hut is an American restaurant chain and international franchise, known for pizza and side dishes. It was was founded in 1958 by two University of Wichita students, Frank and Dan Carney.
Pragma were recently asked by Rutland Partners to undertake commercial due diligence on the UK dine-in Pizza Hut business, with a view to informing their potential investment decision. We focused particularly on the strategic initiatives the company was planning to implement in coming years, as well as consideration of the competitive landscape and brand perceptions.
Our Commercial Due Dilignce included:
• in-depth discussions with the senior team
• a detailed review of marketing strategy
• an assessment of Pizza Hut’s competition
• analysis of recent trading results
Pragma also conducted an extensive programme of consumer research to understand fully the attitudes and behaviours of consumers – this comprised focus groups, an online survey of 2,000 casual diners, and almost 400 interviews of Pizza Hut customers in restaurant.
“Pragma’s report was a very comprehensive piece of work. We were impressed at the amount of ground covered in such a short period of time. It features heavily in our investment committee paper! It will be helpful in shaping future strategy.”
Our work highlighted the strength of the management team and the cohesiveness of their plans, which combined well with the nostalgic affection many families hold for the brand despite historic underinvestment in the estate.
It became apparent that Pizza Hut fulfils a consumer need which is not easily met elsewhere and which, with successful implementation of key initiatives, has the potential to take the company to new levels of service, offer, and customer satisfaction.
Rutland Partners acquired the restaurant business of Pizza Hut UK from Yum Brands in November 2012.
Pragma provided clear and straight-forward perspectives on key questions in our business. Their views are substantiated by facts and thorough research but also by years of hands-on experience in the retail sector.