Pizza Hut Franchise: The Profit Driving Investment 2

Pizza Hut Franchise: The Profit Driving Investment


What an Indian can not stop craving for? It is a pizza, not because we don’t eat that often but pizza has been the only thing that contains the protein of what we call Roti. Apart from pizza growing as no food has ever grown, the large profits made it clear that we need to invest here. But how? Pizza Hut franchise is the only way to take advantage of those profits.

all about pizza hut franchise

Since last year I have been wondering how we Indians can take part in the large profit ventures. The trends in the food industry were the answer available in front of my eyes. Organized franchising has become a trend now. Yes, I have the answer but how do I approach this method? This is the next doubt.

I spent my time coming up with a balanced analysis of the Pizza Hut and then it’s franchise needs and finally, the strategy was built. With pleasure, I reveal the strategy to you. 

Why choose Pizza-Hut?

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The more I heard about the franchise opportunities in the market, the more I found abundant options to explore. Since I have already mentioned that Pizza Hut is the nearest option. The first thing that you are thinking now is why Pizza Hut. Learn my reasons and find yours. Also, tell me in the comments whether you found these reasons satisfying?

  • Personalized experience: at the very least that you can get at Pizza Hut us a personal touch. Not just the interior decor but the service is quite friendly. You get a thank you while leaving and transparent cooking when you order. Just like eating at home.
  • 58 years: what are these 58 years? The number of years that Pizza Hut is in demand and more to come. These years have nothing but a great experience that can make you a real entrepreneur. You can learn, earn, and expand.
  • Early high techs: Pizza But was the only seller delivering at home while the rest copied but who had the vision? It was Pizza Hut so you can easily understand that it can beat its competitors anytime.
  • Global Award 2018: this was not a surprise, a company that has worldwide outlets should get this award. What you can learn from this? You will have access to each outlet in the world and learning from them will be easy.

Have you completed prior requirements for franchising?

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I know that you are on the stage to learn about the franchise and it is really early to even complete those requirements. Here is good news for you, you are already fulfilling some of the franchise requirements. If you wonder how? Then you may want to read the requirements and know for yourself. Just one condition, the requirements are only for those who are really serious but a franchise and start earning.

The importance of franchise requirements is no surprise to any of us. As the number of buyers is increasing each day, any minute you can be rejected and it has become a necessity to do your homework before stepping in the school. Let us go through with your homework, I mean franchise requirements.

  • Employee oriented: it means if you have skilled employees that don’t make you a good Pizza Hut. Your employees must grow each day by learning new skills such as communication, multitasking, and after service.
  • Customer focus: if you know how to handle a customer? How to communicate the delay? Or how to handle panic situations? That means you are ready to start a Pizza Hut in your area. As I said above you must already have some of the requirements done, this could be one.
  • Future finance plans: Pizza Hut will not wait to see the results and then take action. They will demand future plans from your aide so be ready with them. These plans will include the future strategies, profits, and demands of the franchise.
  • Experience: any individual is thoroughly checked through his/her expertise, knowledge, skills, approach, and every other possible method to ensure that franchise is in safe hands. You must acquire experience by working at reputable areas in the food industry. It adds to your knowledge and helps to get a franchise.

How to apply for the Pizza Hut franchise in India?

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Yeah! You learned about requirements for the Pizza Hut franchise. But did you wonder if it is over and you are ready to buy a franchise? No sir, it is not that easy. You need to understand some legal procedures before putting your shoes in the field. 

There is a systemic and lawful process which will help you to work out in a step by step method. In my opinion, let’s just take baby steps. So that you can avoid big blunders and total rejection. Pizza Hut franchising application process is neither a long one nor a complex one. If you are ready with prior requirements, then it will become really easy to buy a Pizza Hut Franchise.

  • Acquire the number of funds required: before jumping in the ocean, on the safe side you must acquire a good amount of investment so that proper creditworthiness can be proved. No franchisor can accept to allot a franchise without the confirmation of lenders.
  • Be ready to pay more: yes you read it right, in most cases, the amount of investment is always lacking. Beyond the fixed investment there are a lot of other expenses such as equipment, services, renovation, salaries, rent/land purchase, and miscellaneous.
  • Question yourself: are you ready to become a franchise owner? Do you have enough experience? Are you aware of popular trends? If you understand the demand and supply of the food industry and you are ready to handle the risk involved then give it a go.
  • Market research: for every business market is the playing field, you must learn about the ups and downs so as to handle them. Identify the needs of buyers to change the taste according to their preferences. Even the Indian taste can be developed by Pizza Hut if given proper focus.
  • Fill the application: go to Pizza Hut and click on applying for a franchise. Fill the complete application with all the required information. Don’t hurry in the process and fill out every detail with care. Submit your application.
  • Wait for approval: it may take some time but you will be communicated about the time period. A background check and various other formalities are done by Pizza Hut to give approval. Try to meet all the requirements of Pizza Hut especially at the time of submitting an application.

What is the expected investment for the Pizza Hut franchise?

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Pizza Hut is a worldwide popular restaurant which as mentioned above provides numerous benefits to every franchisee (who buys a franchise). Hence, it is obvious that an expected amount of investment is the first thing that can be demanded. This investment is paid basically for the goodwill maintained by Pizza Hut.

The fixed investment of buying a franchise is accompanied by additional charges. You need to learn about those charges so as to cover with a full strategy for funding. A detailed costing budget will be provided to get an estimation of the cost.

1 Initial Investment 

  • Delivery Based Restaurants: If you are up for a kind of restaurant where the facility for dine-in and delivery can be provided then this kind of restaurant is known as Fast Casual Delco system Restaurant. In this kind of restaurant, the expected investment will be 20 lakh rupees.
  • Restaurant based delivery system: it is also a kind of delivery and dine in the restaurant but there is a catch. Only the products that are approved by PHLLC can be serviced at the restaurant. The initial investment will be expected at 25 to 35 lakh rupees.
  • Delivery carryout Restaurants: Also known as Delco restaurants are a kind of restaurant where delivery service is only given. This kind of restaurant requires an expected investment of 15 lakhs of rupees.

2 Advertising fee

The fee paid for advertising does not include in the initial investment. It is paid for the part of advertising done by Pizza Hut for all the franchises present all over the world. It is an important factor in a business that contributes to a big part of expenses. Pizza hut demands that fees as it will ultimately benefit each franchise.

3 Royalty

A monthly royalty is needed to be given to Pizza Hut which is 6 percent of the total gross sales of the franchise. You have this amount to be paid because it is the profits that you earn on behalf of Pizza Hut’s goodwill.

Pros and cons of the Pizza Hut franchise in India?

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Yes, I know that you expect only the benefits while buying a franchise. Keeping in mind that you put in good investment into your future ventures I can not ignore any limitations that can cause trouble. A wise decision can only be taken if you are well aware of the pros and cons.

I want you to look at each advantage and disadvantage so that both the effects can be weighed down. The franchise opportunity is really great but everything has its flip side. If you find yourself capable to overcome the ups and downs then it is the best time to go ahead.

Pros of Pizza Hut Franchise

  • At the time of filling the application for a franchise, you may indicate the available location to set up a restaurant. Pizza Hut gives you assistance in this matter and you can choose from the list provided.
  • Each franchise buyer can acquire a building plan. These plans will be structured by architects who will consider the location and prepare a plan accordingly. Even the changes can be worked out if any required. The architect’s team will support you anytime.
  • A list of equipment is given by the side of the Pizza Hut company that enables the major working force to be up to date. Even the updates can be given by Pizza Hut. You will not be required to plan any of these as the franchise has the support from the parent company.

Cons of Pizza Hut Franchise

  • The approval process after filing the application takes around 10-12 weeks. In this period background checks will be done. Then around 3 to 9 months more are required to complete further processes.
  • The person who buys the franchise will be solely responsible for the construction of the restaurant. Yes, the support is given by pizza Hut but the final decision lies in the hands of the franchise owner.
  • The cost of construction and purchase of land is not included in the investment. It is an additional cost that will be the major part of the expenditure to be kept in mind.
  • Only approved products by Pizza Hut can be sold at the restaurant. You can propose new products but they should be given permission to be sold.

When is the renewal time?

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First of all, you must understand an important aspect of the franchise with any company. You can not buy a franchise for a lifetime, a limited period is given to each franchise. It can be between 15 to 30 years depending upon different franchise agreements. After the completion of the agreement, different options are given by the franchisor.

You may choose any option or even none of the options given by the franchisor. The renewal of a franchise is very often ignored by entrepreneurs because it is a process that takes place after a long time. But this ignorance can lead to disruption in the business. Learn it when you can.

  • If you are thinking about the renewal of the franchise agreement then you get a surprise here because there are two renewals. First of all the franchise agreement lasts for about 10 years. In these initial years, your performance is specifically monitored by the Pizza Hut.
  • The. After the completion of the franchise agreement, there can be two renewals, each for 5 years. These renewals will only be given if the franchise meets certain requirements. The most important reason for renewals is the profit earning of the franchise.

Is there any training requirements for the Pizza Hut franchise?

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Don’t you yourself want to be a part of the training from a worldwide organization? It sounds like a great opportunity for anyone. Also, the training period lets you under the working of the organization with deeper concepts. You will get to know how a brand like Pizza But got its place in the market? Every bit of various business concepts can be learned.

  • Yes, there is a training program and a compulsory one. It is mandatory to attend the training program by Pizza Hut. You can not say no to this program. Well, no one even wants to.
  • The program will give basic details so it should be attended by the owner of the franchise. Also, the key operator if the franchise must accompany the owner. (If any)
  • The program must be attended and completed before the opening of the restaurant. You must apply for the program at a reasonable time.
  • The program is conducted for 8 to 12 weeks. Also, the attending person should visit Dallas, TX as the program will be held there. The charges are borne by the owner itself.
  • Except for the cost of training, other costs are paid by the owner such as Accommodation, traveling, food, etc.

What are the popular scandals/rumors of Pizza Hut?

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Why learn about the scandals of an organization? If you are thinking this then answer this one; does any rumor won’t affect your future franchise? Of course, it will affect the same way it affects Pizza Hut. Being a member of an organization requires knowing each part of it.

The most important reason behind sharing the past rumors of Pizza Hut so that you understand how Pizza Hut efficiently handles these rumors and you will too. Also how it affects the brand image, profits, and demand? How do you need to change the organization through time? How employees should be maintained as they play an important role in the rumors.

  • The Vegan Cheese rumor: the most famous rumor of Pizza Hut was adding vegan cheese was very popular during 2019. But the rumor got denied as the customers are eager to see vegan cheese now.
  • Pizza Hut provides financing: No pizza hut does not provide any kind of financing. As you may get confused knowing Pizza Hut is an SBA which is a Small Business Administration. An SBA helps in getting fast loans from banks.
  • Discrimination of 6% GST and 10% GST: well the rumor is entirely false but Pizza Hut handled this rumor magnificently. They have given proper statements to the media and so this rumor ends.

Tap into the future: Do you know about these future prospects of Pizza Hut?

I know Pizza Hut has many outlets around the world but it is still increasing day by day. And there are many more ventures to come in the future. You must know about these ventures as they are helpful in learning about new initiatives that are introduced and techniques at different outlets.

The basic criteria for each outlet are the same but some areas earn higher than others how? Just because they maintain proper routine which if followed by others can give reasonable outcomes. So learn them, use them, and create your ones.

  • 200 outlets until 2022: ao this the breaking news for everyone who wants to buy a franchise. You have a good option here because of no need to wait for Pizza Hut as it is already planning on expanding.
  • Innovation push: Pizza Hut is moving towards an innovation hit so as to come back to its number one position. It is also a favorable task as you can promote your authentic food by proposing it to Pizza Hut. It may get accepted so get your hopes on this one.
  • Closing down US units: yes now you know it, hundreds of US units are going to be closed. So it’s time that Pizza Hut is going to expand in India. As they have already mentioned the large opportunity India.
  • New Marketing: according to the upcoming marketing plan of Pizza Hut the focus will be shifted to Asian. As the main demand in Asian countries comes from India hence wait for the boost in India and you will know it.

Is the Pizza Hut franchise profitable?

If not then do you think you will be here reading this article. It is an obviously profitable business. I want to answer the real question and that is How many risks are involved? How many profits are expected? What is our profitability? Yes, this is the real question that will be answered by me.

If you are not satisfied with the answer then you can comment below to know more about any query. Pizza Hut has grown bigger than you imagine so the minor things can also create big impacts at the business. It is very essential to learn about each of them. Let us take a quick shot at profits.

  • The approximate profitability of Pizza Hut stands at 25% to 30%. This figure is not disclosed by Pizza Hut and you may want to discuss it.
  • Also, the figure is changing according to the different operational areas. So it really depends on the demand and sales of each operational area affecting accordingly.
  • Market research is the answer to your question. Thorough research is required before starting a franchise in India. You may want to get help from a professional. It is recommended.

What is the reach of Pizza Hut?

It is time that you understand about the world reach of Pizza Hut. Yes, I know that Pizza Hut is worldwide famous but where? And how much? Don’t you wonder about this? If yes then I will answer your question right now.

  • Number of US restaurant: 6300 and counting
  • Number of US franchises: 125 or more
  • Number of team members: 150000 only in the US

The reach of Pizza Hut has been in various countries which gives you numerous opportunities but what if you have a complaint or an issue? Where would you go? So here is the direct address.

12th Floor, Tower D, Global Business Park,

Gurgaon, Haryana, India.

Pin code: 122002

Pizza Hut Franchise Contact Number:

+91-124-4025100

This address builds up confidence that anyone can reach Pizza Hut but you also have an option to communicate through social websites. From here: https://twitter.com/PizzaHutIN

Have a snack and learn about Pizza Hut

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The recent slogan of Pizza Hut “The Flavour of Now” is the thing that I lived most so starting from the slogan, it is one such redesigned slogan that describes the new identity of Pizza Hut. The freshness and variety of crusts have made Pizza Hut what it is now. The chain has been running for 6 decades.

I really wondered how companies work this long with the same culture and authentic taste? Pizza Hut much like many companies has redesigned its structure many times and the same culture myth is broken just like that. Being the first-ever pizza chain of America, Pizza Hut has got its own share of fame.

The market share of Pizza Hut has enjoyed increments over the years. But who owns Pizza Hut? The whole Pizza Hut franchise part is controlled by Yum! brands. 

Top 5 franchising alternatives

Yes, Pizza Hut is the best franchising option that I have come up with until now. But the various factors on which a franchise depends have been discussed above can change your decision. So here are some that can suit you more than a Pizza Hut franchise. Let us know about them.

  • Dominos Pizza: the best competitor that I can imagine anytime is Dominos. It is one of those cut-throat competitors that have made the position of Pizza Hut worthwhile. It is the only competitor in India.
  • McDonald’s: yes McDonald’s is a good competitor of Pizza. But when I really crave pizza I can’t go to McDonald’s. Being in India sometimes I really find that McDonald’s is ok if I can’t find a Pizza Hut. So yes it is one of the competitors.
  • KFC: it is not only a competitor but also a good alternative that you can choose as a Franchise Option. Why? The growing demand is the only reason that is enough to make your decision worthwhile. I hope you are already craving for a bucket when reading KFC.
  • Burger King: It is one of the huge competitors and a great alternative option. Even if you are not aware of this option then I must say that you should read about it once. Here is a guide to let you know about hidden details. Burger King is also a 50 years old outlet that will give you the best pricing.
  • Subway: we can’t forget the subway, it has been the largest competitor in the market. It is the only location where you can find the typical shape of a burger. It attracts abundant customers every month even though the pricing is good.

Conclusion 

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The franchise has been the word of income, large profits are the hidden word here but majorly risk is what you should understand first. Now you may think how to overcome risk? The only option is expanding your knowledge. But how do you do that? Do the same thing you are doing now, read more and learn more. 

Here is a tip# you don’t have to know everything because you can pay for what you don’t know. But it is important to be curious.

Any more queries? Which query was solved here? Which point do you want me to explain more? Have you started working on buying a franchise? If not, waiting for what? Get ready now and if still confused, comment below anytime.

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