CONSUMER SATISFACTION TOWARDS PIZZA

HUT

A report submitted to
as a part fulfilment of

Submitted to:

Submitted by:

ACKNOWLEDGEMENT
Concentration, dedication and application are necessary but not sufficient to achieve any goal.
Without a proper combination of inspection and perspiration, its not easy to achieve anything.
There is always a sense of gratitude, which we express to others for the help and the needy
services they render during the different phases of our lives. Therefore, it is my duty to
acknowledge to those honorable personalities of the who helped me to follow the path to success
for the completion of this project.

I would like to thank my project guide Mr. ___________________who was always there to help
and guide me when I needed help. His perceptive criticism kept me working to make this project
more full proof. I am thankful to him for his encouraging and valuable support. Working under
him was an extremely knowledgeable and enriching experience for me. I am very thankful to
him for all the value addition and enhancement done to me.

I would like to thank all the respondents who have taken their precious time to fill up the survey.
No words can adequately express my overriding debt of gratitude to my parents whose support
helps me in all the way. Above all I shall thank my friends who constantly encouraged and
blessed me so as to enable me to do this work successfully.

PREFACE

Human being enters the world with a raw brain and mind. Until he works out with his
imagination, he cannot reach the soaring heights of success. Study of management will be
worthwhile only if it is coupled with the practical studies and imagination power.

Practical Training constitutes an important part in a good practice oriented management course.
According to the syllabus of MBA, every student has to undergo practical project training for
exposure in any commercial industry or organization. So for the partial fulfillment of this
requirement, I underwent my training at Pizza Hut.

Practical training, which is a part of management studies intends to provide a student with
sufficient knowledge to develop an equation to connect theory and practical aspects and thereby
gives an opportunity to test and verify application of theory and comprehends interaction
between management concepts and practice.

It is with great sincerity and enthusiasm that I take up the challenge that this field has placed
before me and hope to succeed with guidance from my professors.

TABLE OF CONTENTS

Sr. no

Contents

Page.
No.

Executive Summary
Industry profile
Industry Overview
Emergence
Impact
Current Scenario of Fast food restaurant industry in India
Growth Driver
Challenges for the industry
Problem of Industry
Competitors
Company profile
About Parent Profile Yum Brand Inc.
Business strategy
Vision
Values
Pizza Hut
Products

Theoretical Framework of Customer Satisfaction

Introduction of customer satisfaction
Purpose
Importance of Customer Satisfaction
Review of Literature

Design of the Study

Objective of the Study

Research Design
Data Collection
Questionnaire Design
Sample Design
Data Analysis
Limitations of the Study
5

Data Analysis and Interpretation

Findings

Suggestions

Bibliography

Annexure

EXECUTIVE SUMMARY

The foray of multinational fast food retailers into India has impacted the taste buds of Indian
consumers significantly. Instant food is scoring over traditional food due to influence of Western
countries, and rise in income & subsequent standard of living, convenience, etc. As a result, fast
food menus are gaining wider acceptance from the Indian consumers
The Indian fast Food Industry Dryer has witnessed high growth strides in the past years, with
increasing disposable income; exposure to a number of cuisines; and consumers willingness to

experiment a mix of both Western and local menu. It has not only provided convenience to
people who shuttle between home and work for a bigger part of the day but also eliminated the
requirement of conventional cutlery. This industry at the moment thrives on international appeal
endorsed by niche chains. The development of nutritious and healthier replacements for the
traditional servings at fast food restaurants has transformed into mass promotion of portable
foods.

Currently the Indian fast food industry is driven by a growing number of working professionals
and increasing westernization. Apart from this, busy life schedule, standardized food, and less
time consuming processes are also fuelling the demand from domestic consumers in the industry.
As demand for all types of fast food items are consistently on the rise, pizza, burger, and French
fries have become the all time favorite among young Indians, more so with some of the wellknown burger and pizza restaurants like McDonalds, Dominos, KFC, Pizza Hut, Nirulas etc,
operating in India.
This project put emphasis on knowing customer satisfaction towards Pizza Hut. Project starts
with introduction of industry profile, its current scenario, major players and challenges. Second
chapter is about the company profile, its vision, mission, products etc. Third chapter is about
theoretical framework of customer satisfaction. Fourth chapter is about the design of the study,
its objective and research methodology. Last chapter is about the survey of customer satisfaction
of Pizza Hut restaurant. Findings and Suggestions were given on the basis of survey conducted.
Both primary and secondary data were used to do the project.
Study showed that most of the customers are satisfied with product, service and price of Pizza
Hut and Pizza Hut is successful in satisfying the customer.

CHAPTER -1

INDUSTRY PROFILE

INDUSTRY OVERVIEW
Fast food (also known as Quick Service Restaurant or QSR within the industry itself) is the term
given to food that can be prepared and served very quickly. While any meal with low preparation
time can be considered to be fast food, typically the term refers to food sold in a restaurant or
store with preheated or precooked ingredients, and served to the customer in a packaged form for
take-out/take-away. The term "fast food" was recognized in a dictionary by MerriamWebster in
1951.
Outlets may be stands or kiosks, which may provide no shelter or seating, or fast food restaurants
(also known as quick service restaurants). Franchise operations which are part of restaurant
chains have standardized foodstuffs shipped to each restaurant from central locations.
The capital requirements involved in opening up a non-franchised fast food restaurant are
relatively low. Restaurants with much higher sit-in ratios, where customers tend to sit and have
their orders brought to them in a seemingly more upscale atmosphere, may be known in some
areas as fast casual restaurants.
The concept of ready-cooked food for sale is closely connected with urban development. In
Ancient Rome cities had street stands that sold bread and wine. A fixture of East Asian cities is
the noodle shop. Flatbread and falafel are today ubiquitous in the Middle East. Popular Indian
fast food dishes include vada pav, panipuri and dahi vada. In the French-speaking nations of
West Africa, roadside stands in and around the larger cities continue to sellas they have done
for generationsa range of ready-to-eat, char-grilled meat sticks known locally as brochettes
(not to be confused with the bread snack of the same name found in Europe).

Quick food outside the home or workplace has become an essential part of lifestyle in India over
the past decade. McDonalds, Pizza Hut, Dominos Pizza, and Nirulas fast food chains have
outlets in every nook and cranny of large cities. They efficiently serve burgers, fries, chicken
nuggets, hot dogs, sandwiches and drinks to the busy person who doesnt have more than five

minutes to spare for his meal. Fast food has also rapidly gained popularity among the youth ever
since its emergence. It is the youths idea of a quick and tasty lunch on-the-go.
Why fast food? Its tasty, economical and only a drive-through or phone call away.

Emergence
The fast food culture emerged as early as the 19th century. During the Industrial Revolution, a
large workforce was required to work for 10 to 12 hours a day. With so much work to be done,
fast food was the idea of a quick and easy lunch.
In India, fast food culture emerged in the decades after independence, starting from the 1950s.
Eating at home used to be a significant aspect of Indian culture, so the change was gradual. Over
a period of time, with a growth in the number of nuclear families, economic growth and
increasing per capita income as well as globalization, fast food culture gained prominence.
Women were shifting from their conventional roles of managing the household and taking care
of the children. With growth in literacy, they started joining the workforce in large numbers. Fast
food became a time-saving alternative to cooking for them.
Similarly, children resorted to fast food to fill their stomachs in school and college. Their
exposure to global urban culture and Western cuisine accelerated their want for cheap and
delicious fast food.
Moreover, fast food costs less than traditional long meals commencing with appetizer and
concluding with dessert.
Nirulas and Pizza Corner Indias most popular domestic fast food chains gained rapid
popularity during this period. Though the fast food culture originated abroad, these domestic
food chains could create a perfect blend of international food with Indian ingredients. Paneer
pizzas and aloo tikki burgers were indeed able to satisfy Indian taste buds.
With the liberalization of the economy in 1992, new multinational fast food giants started dotting
India with their outlets. Burger King, Wimpys, Pizza Hut, Dominos Pizza, McDonalds, and
KFC outlets can be seen today in nearly every shopping mall and other public areas. In fact,
these multinationals have given their domestic counterparts a run for their money. They are
growing at a much faster pace than the Indian chains.

Impact
The emergence of the fast food industry has, to an extent, transformed urban food culture in
India.
It is common knowledge that too much fast food is bad for health and may lead to obesity. An
essential component of most fast food is fat the kind of fat that in excess can lead to artery
clogging. In large quantities, fast food may lead to obesity as well as hypertension, diabetes, high
cholesterol and heart diseases. Even certain types of cancers have been observed to spread due to
lack of safety standards in some sectors of the fast food industry.

There are also several environmental problems associated with how fast food outlets process and
package their products. Food packaging is done using plastic, Styrofoam and other synthetic
products which are not biodegradable. In recent times, many fast food outlets have switched to
paper bags. Though paper is biodegradable, at the large quantities in which paper waste is
generated in India, currently paper is seen more as a pollutant. Metal and glassware would be
more favorable to serve food, but they destroy the whole purpose of consuming food on-the-go.
The need of the hour is a law or regulation that forces these outlets to recycle the paper, plastic
and foam they use everyday.

CURRENT SCENARIO OF FAST FOOD AND RESTAURANT INDUSTRY IN INDIA:

Eating at home remains very much inbuilt in Indian culture and changes in eating habits are very
slow moving with barriers to eating out entrenched in certain sectors of Indian society. The
growth in nuclear families, particularly in urban India, exposure to global media and Western
cuisine and an increasing number of women joining the workforce have had an impact on eating
out trends. Which has lead us to a new era of eating- fast food

INDIAN consumers are increasingly spending large sums, eating out with family and friends on
weekends and holidays, churning up a huge appetite for the global quick service restaurant
(QSR) and casual dining restaurant (CDR) business.
Young and old Indians can be seen devouring billions of dollars worth of fast food at shopping
malls, multiplex complexes, metro stations, highway eateries and even in office blocks, as the
eating out culture spreads across urban India. Even Tier-2 and Tier-3 cities are witnessing this
gastronomic revolution, much to the delight of QSR and CDR majors.

The fast food, or QSR, format took off in India about 15 years ago with the arrival of
multinational players such as McDonalds, KFC, Dominos Pizza and Pizza Hut. These players
initially had a tough time understanding the Indian consumer, as their home-market models did
not work well in India.
Over the last decade, though, many of these players have got their act together through a better
understanding of the Indian market in the form of Indianised menus, breakfast menus, sit-and-eat
formats and positioning their outlets as destinations for family outings.
Constantly experimenting with the tastes of consumers by mixing western and 'desi' menus, fast
food industry has seen a rapid growth in last few years. The Indian fast food market has been
witnessing rapid growth on the back of positive developments and presence of massive
investments. Currently, market growth is largely fuelled by the rising young population, working
women, hectic schedules, and increasing disposable income of the middle-class households.
Some of the unique properties of fast food like quick served, cost advantage, etc are making it
highly popular among the masses. Thus, India offers enormous opportunities for both domestic
as well as international players.

Indians had spent close to Rs 13,580 crore in 2013-14 at fast-food joints. The fast-food market
would be growing at 40% per year.

The report indicates a major shift in food habits in metropolitan cities with about 86 per cent of
respondent households preferring to have instant food due to steep rise in dual-income levels,
standard of living, convenience and influence of Western countries.

The Indian consumers have been eating at roadside eateries, dhabas and stalls which still occupy
a major share of the unorganized sector, where fast food has been eaten traditionally. However,
with the changes in the economy of the country and injection of modern employment from the
West, the non-home food market has now changed.
The market is dominated by global players, especially in the organized fast food segment.
Growing trend of consumption of multi cuisines and increasing brand awareness has led to the
increase of global players. Organized modern formats like malls and supermarkets have also
become a favorite destination for the outlets. Larger companies are teaming up with small
franchisors and mall owners to promote their brand.

The growing segment comprises of formats like fast food chains, cafes and fine dining
restaurants. Two sub segments of the fast food market are the Pizzas and Burgers. These have
now developed into part of the nations eating habits. Their share is continuously growing with
the key global brands such as Dominos, McDonalds and KFC making their marks quickly.

Growth Driver

Gender roles: Gender roles are now changing. Females have started working outside. So, they
have no time for their home and cooking food. Fast food is an easy way out because these can be
prepared

easily.

Workingwomen

have

no

time

for

cooking.

Customer sophistication and confidence: Consumers are becoming more sophisticated now.
They dont want to prepare food and spend their time and energy in household works. They are

building their confidence more on ready to eat and easy to serve kind of foods.
Paucity of time: People have no time for cooking. Because of emergence of working women
and also number of other entertainment items. Most of the time either people work or want to
enjoy

with

their

family.

Double Income Group: Emergence of double income group leads to increase in disposable
income. Now people have more disposable income so they can spend easily in fast food and
other

activities.

Large population: India being a second largest country in terms of population possesses large
potential market for all the products/services. This results into entry of large number of fast food
players in the country. Relaxation in rules and regulations: with the economic liberalisation of
1991, most of the tariff and non-tariff barriers from the Indian boundaries are either removed or
minimised.

This

helped

significantly

the

MNCs

to

enter

in

the

country.

Menu diversification: Increase in consumption of pizzas, burgers and other type of fast foods.

Challenges

for

the

industry

Social and cultural implications of Indians switching to western breakfast food:

Generally, Hindus avoid all foods that are believed to inhibit physical and spiritual development.
Eating meat is not explicitly prohibited, but many Hindus are vegetarian because they adhere to
the concept of ahimsa. Those seeking spiritual unity may avoid garlic and onions. The concept of
purity influences Hindu food practices. Products from cows (eg, milk, yogurt, ghee-clarified
butter) are considered pure. Pure foods can improve the purity of impure foods when they are
prepared together. But now, Indians are switching to fast food that contain all those things that
are considered impure or against their beliefs. Some traditional and fundamentalist are against
this transformation of food habit and number of times they provoke their counterparts to revolt
against such foods. And that is what happened when Pizza hut decided to enter the complexity of

Indian business landscape, counting only on its fast food global formula, without any apparent
previous

cultural

training.

Emphasis on the usage of bio-degradable products: Glasses, silverware, plates and cloth
napkins are never provided with fast food. Instead, paper plates and napkins, polyurethane
containers, plastic cups and tableware, drinking cartons or PET (polyethylene terephthalate)
bottles are used and these are all disposable. Many of these items are tossed in the garbage
instead of being recycled, or even worse, merely thrown on the ground. This burdens nature
unnecessarily and squanders raw materials. In order to reduce soil and water pollution,
government

now

emphasises

more

on

the

usage

of

bio-degradable

products.

Retrenchment of employees: Most of new industries will be capital intensive and may drive
local

competitors,

which

have

more

workers,

out

of

business.

Profit repatriation: Repatriation of profits is another area of concern for Indian economy. As
when multinational enters the any countries, people and government hope that it will increase the
employment rate and result in economic growth. However, with the multinational operation, host
country experiences these benefits for a short time period. In long run neither employment
increases (because of capital intensive nature of MNCs) nor it increases the gross domestic
product or gross national product because whatever MNCs earn they repatriate that profit back
to

their

home

country.

Problems of industry
Environmental friendly products cost high: Government is legislating laws in order to keep
check on the fast food industry and it is emphasising more on the usage of bio-degradable and
environment friendly products. But associated with this issue is the problem that fast food player
faces - the cost associated with the environment friendly products. They cost much higher than
the normal products that companies use for packaging or wrapping their products.
Balance between societal expectation and companies economic objectives: To balance a
societys expectation regarding environment with the economic burden of protecting the

environment. Thus, one can see that one side pushes for higher standards and other side tries to
beat the standard back, thereby making it an arm wrestling and mind boggling exercise.
Health related issues (obesity): Studies have shown that a typical fast food has very high
density and food with high density causes people to eat more then they usually need. Low
calories food: Emphasis is now more on low calories food.

Competitor

1.
Domino's Pizza, Inc. (NYSE: DPZ) is an international pizza delivery corporation headquartered
in Ann Arbor, Michigan, United States. Founded in 1960, Domino's is the second-largest pizza
chain in the United States and has nearly 9,000 corporate and franchisedstores in 60 international
markets and all 50 U.S. states. Domino's Pizza was sold to Bain Capital in 1998 and went public
in 2004. The menu features pizza, pasta, oven-baked sandwiches, wings, boneless chicken,
salads, breadsticks, cheesesticks, and a variety of dessert items.

2.
KFC Corporation (KFC), founded and also known as Kentucky Fried Chicken, is a chain
offast food restaurants based in Louisville, Kentucky, in the United States. KFC has been a brand

and operating segment, termed a concep of Yum! Brands since 1997 when that company was
spun off from PepsiCo as Tricon Global Restaurants Inc.
KFC primarily sells chicken pieces, wraps, salads and sandwiches. While its primary focus
isfried chicken, KFC also offers a line of grilled and roasted chicken products, side
dishes anddesserts.

Outside North

America,

KFC

offers

beef

based

products

such

as hamburgers or kebabs, pork based products such as ribs and other regional far
The company was founded as Kentucky Fried Chicken by Colonel Harland Sanders in 1952,
though the idea of KFC's fried chicken actually goes back to 1930. Although Sanders died in
1980, he remains an important part of the company's branding and advertisements, and "Colonel
Sanders" or "The Colonel" is a metonym for the company itself. The company adopted KFC, an
abbreviated form of its name, in 1991. Starting in April 2007, the company began using its
original name, Kentucky Fried Chicken, for its signage, packaging and advertisements in the
U.S. as part of a new corporate re-branding program; newer and remodeled restaurants will have
the new logo and name while older stores will continue to use the 1980s signage. Additionally,
Yum! continues to use the abbreviated name freely in its advertising.

3.
Subway is

an

American

restaurant franchise that

primarily

sells submarine

sandwiches (subs),salads, and personal pizzas. It is owned and operated by Doctor's Associates,
Inc. (DAI). Subway is one of the fastest growing franchises in the world with approximately
34,003 restaurants in 95 countries/territories as of February, 2014. It is the largest single-brand
restaurant chain globally and is the second largest restaurant operator globally after Yum!
Brands (35,000 locations).
Subway's main operations office is in Milford, Connecticut, and five regional centers support
Subway's growing international operations. The regional offices for European franchises are
located in Amsterdam, Netherlands; The Australia and New Zealand locations are supported
from Brisbane, Australia; the Middle Eastern locations are supported from offices located

inBeirut, Lebanon; the Asian locations from Singapore and India, Korean Peninsula operations
from Pyongyang and

the Latin

America support

center

is

in Miami,

Florida.

In

the UK andIreland the company hopes to expand to 2,015 restaurants by some time in 2015.

4.
Wimpy is the brand name of a chain of fast-food hamburger restaurants based in the UK. It is
well known for its burger known as the Bender, which is actually a frankfurter sausage and not a
hamburger patty. The restaurants were originally called Wimpy Bars, but the name was shortened
to Wimpy many years ago. The current owners of the Wimpy brand operate in several
countries under the name of Wimpy International.

CHAPTER -2
COMPANY PROFILE

About Parent Profile Yum Brands Inc.

Yum! Brands, Inc., (NYSE: YUM), based in Louisville, Kentucky, is one of the worlds largest
restaurant companies with over 40,000 restaurants in more than 125 countries and territories.

Yum! Brands is ranked #216 on the FORTUNE 500 list with revenues of more than $13 billion
and in 2014 was named among the 100 Best Corporate Citizens by Corporate Responsibility
Magazine. Co.s restaurant brands KFC, Pizza Hut and Taco Bell are the global leaders of
the chicken, pizza and Mexican-style food categories.
Since its spin-off from PepsiCo in 1997, Yum! Brands has become a truly global company going
from approximately 20 percent of profits coming from outside the U.S. to almost 70 percent in
2013. Co. is a leader in international retail development, opening on average over five new
restaurants per day outside the U.S. in 2013.
Yum! Brands has a portfolio of brands with leadership positions in China and other emerging
markets, with a long runway for growth. Co. is proud to be the worldwide leader in emerging
markets with more than 14,000 restaurants, nearly twice as many as the nearest competition.
With only 2 restaurants per million people in the top 10 emerging markets, compared to 58
restaurants per million in the U.S.

Business Strategies:

Three key business strategies:

Build powerful brands through superior marketing, breakthrough innovation and

compelling value with a foundation built on winning food and world class operations.

Drive aggressive unit expansion everywhere, especially in emerging markets, and build
leading brands in every significant category in China and India.

Create industry-leading returns through franchising and disciplined use of capital and
maximize long-term shareholder value.

With Co.s announcement to combine Yum! Restaurants International (YRI) and U.S. individual
divisions for KFC, Pizza Hut and Taco Bell, effective January 1, 2014, Co. is well positioned to
more aggressively accelerate growth in the years ahead. Yum! Restaurants China and Yum!
Restaurants India remains separate divisions given their strategic importance and enormous

growth potential. Co. remains focused on the three keys to driving shareholder value: new-unit
development, same-store sales growth and generating high returns on invested capital.
Importantly, Co. has 1.5 million associates around the globe and the unique culture Co. has built,
one thats filled with energy, opportunity, and fun.

Vision
Yum! Brands is committed to continuing the success realized during first ten years. Our success
has only just begun as we look forward to the future, one which promises a long runway for
growth, especially on an international level.

Values

We place the customer experience at the core of all we do. Our customers are the reason for
our existence. We demonstrate our appreciation by providing them with high quality food and
superior service in a clean, welcoming environment, at a great value. Our goal is quality, service,
cleanliness and value (QSC&V) for each and every customer, each and every time.
We are committed to our people. We provide opportunity, nurture talent, develop leaders and
reward achievement. We believe that a team of well-trained individuals with diverse
backgrounds and experiences, working together in an environment that fosters respect and drives
high levels of engagement, is essential to our continued success.
We believe in the Yum;s System. Yums business model, depicted by our three-legged stool
of owner/operators, suppliers, and company employees, is our foundation, and balancing the
interests of all three groups is key.
We operate our business ethically. Sound ethics is good business. At Yum, we hold ourselves
and conduct our business to high standards of fairness, honesty, and integrity. We are
individually accountable and collectively responsible.

We give back to our communities. We take seriously the responsibilities that come with being a
leader. We help our customers build better communities, support Charities, and leverage our size,
scope and resources to help make the world a better place.
We grow our business profitably. Yum is a publicly traded company. As such, we work to
provide sustained profitable growth for our shareholders. This requires a continuous focus on our
customers and the health of our system.
We strive continually to improve. We are a learning organization that aims to anticipate and
respond to changing customer, employee and system needs through constant evolution and
innovation.

Pizza Hut

Pizza Hut, a subsidiary of Yum! Brands, is the worlds largest pizza company, specializing in the pizzas
you never have to settle for Pan Pizza, Thin N Crispy Pizza, Hand-Tossed Style Pizza and Stuffed
Crust Pizza. Pizza Hut began 55 years ago in Wichita, Kansas, and today is an iconic global brand that
delivers more pizza, pasta and wings than any other restaurant in the world. A true innovator in the pizza
category, Co. is not only the first to provide America with Pan Pizza, but also the first ever online
purchase.
Effective January 1, 2014, Pizza Hut division includes over 13,300 restaurants including over 7,800
units in the U.S. and over 5,500 outside the U.S. in 88 countries, excluding the Yum! China and India
divisions. Co. is taking the powerful Pizza Hut Red Roof icon and accelerating the growth of Delivery,
Express and Dine-In channels around the world.
Co. began building delivery carryout units in 1988 and today it is the fastest growing part of its business.
With Delivery, Co.s strategy is to take advantage of its existing scale and quickly grow the brand in both
developed and emerging markets. For example, in the past three years in the U.S., Co. has built over 600
new Delco stores specializing in delivery and carry-out. Co.s Express business found in shopping
malls, large retail chains, travel centers and on military bases is the clear leader in the U.S. and Co. is

growing it internationally. Dine-In has always been at the heart of Co.s business. Co. is building vibrant
casual dining Pizza Hut restaurants in many international markets and offer a Pizza and More menu
strategy. Co. has also developed a new sub-brand in the U.S. called WingStreet , making Pizza Hut the
first big American chain to deliver chicken, sides and complete chicken dinners.

Pizza Hut entered India in 1996, and opened its first restaurant in Bangalore. Since then it has
captured a dominant and significant share of the pizza market and has maintained an
impressive growth rate of over 40 per cent per annum. In India Pizza Hut has not included
all kinds of Pizza which it serves elsewhere. But rather localized its menu as per Indian
customers. critical factor in Pizza Huts success has been a menu that has
constantly evolved and expanded to cater to the changing needs and specific
preferences of customers in different parts of the world. In having understood the pulse of
the customers in India, Pizza Hut has clearly established itself as a brand with an Indian
heart.
Besides offering an extensive range of vegetarian pizzas, it was the first pizza chain to open a
100% vegetarian restaurant in India in Surat and later in Ahmedabad and
Chowpatty, where it offers a Jain menu sans all root-based ingredients.

Products

1. Pizzas
a. Pan Pizza
b. Stuffed crust pizza
c. Thinn crispy pizza
d. Seekh kebab stuffed crust pizza

e. Supreme

f. Chicken supreme
g. Super supreme
h. Chicken tikka
i. Chicken fajita
j. The euro
k. Fajita sicilian
l. Afghani tikka
m. Shawarma pizza
n. Behari chicken pizza
o. Meat lovers
p. Hot & Spicy
q. Cheese lovers
r. Veggie lovers

2. STARTERS
a. Chicken wings
b. Spicy wedges
c. Behari chicken spin rolls
d. Garlic bread
e. Garlic bread supreme
f. Garlic mushrooms

g. BBQ Chicken Spin Rolls

3. SOUPES & SALADS

a. Sweet corn and chicken soup
b. Mexican tomato bean soup
c. Salad bar

4. PASTAS
a. Lasagna florentine
b. Creamy tomato penne
c. Fettuccine alfredo
d. Spaghetti bolognaise

5. SANDWICHES
a. Philly steak sandwich
b. Mexican chicken sandwich
c. Tuna melt sandwich

6. DESSERTS
a. Strawberry cheesecake
b. Lemon cheesecake

c. Chocolate cheesecake
d. Ice cream
e. Triple treat
f. Brownie a la mode
g. Chocolicious brownie

CHAPTER 3
THEORETICAL FRAMEWORK OF CUSTOMER SATISFACTION

Introduction of customer satisfaction

Every human being is a consumer of different produces. If there is no consumer, there is no
business. Therefore, consumer satisfaction is very important to every business person.
According to Philip Kotler consumer satisfaction is defined on, personal feeling of pleasure
resulting from comparing a products pursued performance in relation to his /her expectations.
Consumer attitude measurements are taken on either potential buries or existing clients buries in
order to identify their characteristics. Why should the competent market engineer conduct
consumer research? Consumer surveys can provide the researcher with a wealth of information,
valuable of the marketing function.

Detailed information regarding the customer in a market will provide the basic platform for all
marketing decisions. Marketing decision maker needs descriptive information about the total

potential unit and dollar sales in each segment. Perhaps the most important one is that a seller
needs to be aware of the relevant objective and need of consumer and how their objectives might
best be served by the products.
Customer satisfaction, a business term, is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as "the number
of customers, or percentage of total customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified satisfaction goals."
It is seen as a key performance indicator within business and is part of the four of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers, customer
satisfaction is seen as a key differentiator and increasingly has become a key element of business
strategy.
Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers expectations. Furthermore, when these
ratings dip, they warn of problems that can affect sales and profitability. These metrics quantify
an important dynamic. When a brand has loyal customers, it gains positive word-of-mouth
marketing, which is both free and highly effective.
In researching satisfaction, firms generally ask customers whether their product or service has
met or exceeded expectations. Thus, expectations are a key factor behind satisfaction. When
customers have high expectations and the reality falls short, they will be disappointed and will
likely rate their experience as less than satisfying. For this reason, a luxury resort, for example,
might receive a lower satisfaction rating than a budget moteleven though its facilities and
service would be deemed superior in absolute terms.

The importance of customer satisfaction diminishes when a firm has increased bargaining power.
For example, cell phone plan providers, such as AT&T and Verizon, participate in an industry
that is an oligopoly, where only a few suppliers of a certain product or service exist. As such,
many cell phone plan contracts have a lot of fine print with provisions that they would never get
away if there were, say, a hundred cell phone plan providers, because customer satisfaction

would be way too low, and customers would easily have the option of leaving for a better
contract offer.
There is a substantial body of empirical literature that establishes the benefits of customer
satisfaction for firms.

Purpose
Customer satisfaction provides a leading indicator of consumer purchase intentions and loyalty.
Customer satisfaction data are among the most frequently collected indicators of market
perceptions. Their principal use is twofold
Within organizations, the collection, analysis and dissemination of these data send a message
about the importance of tending to customers and ensuring that they have a positive experience
with the companys goods and services
Although sales or market share can indicate how well a firm is performing currently, satisfaction
is an indicator of how likely it is that the firms customers will make further purchases in the
future. Much research has focused on the relationship between customer satisfaction and
retention. Studies indicate that the ramifications of satisfaction are most strongly realized at the
extremes. On a five-point scale, individuals who rate their satisfaction level as 5 are likely to
become return customers and might even evangelize for the firm. (A second important metric
related to satisfaction is willingness to recommend. This metric is defined as "The percentage of
surveyed customers who indicate that they would recommend a brand to friends." When a
customer is satisfied with a product, he or she might recommend it to friends, relatives and
colleagues. This can be a powerful marketing advantage.) Individuals who rate their satisfaction
level as 1, by contrast, are unlikely to return. Further, they can hurt the firm by making
negative comments about it to prospective customers. Willingness to recommend is a key metric
relating to customer satisfaction

Importance of consumer satisfaction

The needs to satisfy customer for success in any commercial enterprise is very obvious. The
income of all commercial enterprise is derived from the payments received for the products and
services supplied to its customers. If there is no customer there is no income and there is no
business. Then the core activity of any company is to attract and retain customers. It is therefore
no surprise that Peter Drucker the renowned management Guru, has said to satisfy the
customers is the mission and purpose of every business.

Satisfaction of customer is essential for retention of customers and for continuous sales of the
products and services of the company to customers. This establishes the needs for and the
importance of customer satisfaction. The satisfaction of consumers is different from one to
another. Became, each consumer has the different behaviour in their life. So, the marketer
satisfies the consumer, he must very well know the behaviour of consumer.

REVIEW OF LITERATURE

Liking towards the brand itself can influence liking for the brand (Hawkins, Best & Coney,
1992). However according to study by Biehal, Stephens and Curlo (1992) whether consumers
like or dislike the product does not necessarily lead to brand acceptance or rejection. So, even
though consumers may like the product that they see, it does not necessarily mean that they will
go out and buy the brand. Usually the consumer uses their attitude towards the product in brand
choice equaled that of attitude towards the brands.

SMITH MARSHAL (2000): Customer satisfaction measures the customer perceptions of how
well the company delivers on the critical success factors and dimensions of the business. These
usually include factors like services promptness, staff responsiveness, and understanding the
customers problem.

ADRIAN THOMPSON (2002) that consumers feel valued wanted and loved when:
1. Encourage face to face dealings.
2. Respond to messages promptly and keep your customers informed.

MILSON (2003) found that several authors maintain that it is nothing short of folly to teach rules
and marketing staffs the fewer points of quality control in the manufacturing process, forgetting
that it is these very people who have the most direct contact with the companies customers.

ALVIN AB-RAHAN AND ANIL NAIN (2003) in their title customer statement redesign
improving customer satisfaction and reducing cost. Utility companies always target to provide
better services and solutions to their customers. Customer statements in the utilities industry act
as direct interfaces with which the industry interacts with its customers. This paper provides how
the customer statements were redesigned to provide customer satisfaction through a better look
and feel while in the process providing cost savings to the company.

KELLY WHITNEY (2006): Customer advocacy and customer satisfaction the typical
measurements around customer satisfaction of service delivery are customer advocacy or
customer loyalty is typically very different and there are questions around willingness to

repurchase and willingness to recommend you to others .You can make a customer satisfaction,
but they will really recommend you to others, and will they really repurchase from you again?
Unless you ask these questions, you wont know. There is nothing like the voice of customers.

A SARINGAPANI (2006): It is a proven fact that cost of retaining customer is much lower than
acquiring a new one and CRM helps the industry not only building relationship but also financial
returns.

SREEKUMAR P (2007): Customer attitude and customer perceived value can be improved by
managing customer interactions under the wider perspective of CEM. Understanding the various
experience points especially under the complex environment of many outsourced functions, and
managing them with the use of relevant IT TOOLS can ensure less customer attrition and long
term profitability. The focus should shift from operations and service- based CRM to total CEM
by analyzing the multipoint customer interactions and understanding that customer satisfaction
needs a holistic approach covering all possible contact points through which customer experience
is delivered.

CHAPTER-4
DESIGN OF THE STUDY
RESEARCH OBJECTIVE
7. To study the fast food industry in India, its market size and major players.
8. To analyze the customer satisfaction towards Pizza Hut.
9. To study the factors considered by customer at the time of selecting fast food restaurant.
10. To study which factor attracts customer for going Pizza Hut.
11. To study the factors which need improvement in Pizza Hut as per customer.

RESEARCH DESIGN:
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. In fact, the
research design is a conceptual structure within witch research is conducted; it constitutes the
blue print for the collection, measurement and analysis of data.
As in this type of research I have use the method of descriptive research design.

DATA COLLECTION:
PRIMARY DATA:
This data can be collected through: The information provided by the customer through the
personal interaction with the help of questionnaire. Questionnaire were filled up by people
visiting Pizza Hut restaurant.

SECONDARY DATA:
This data was collected through any indirect source of information. I collected using the
following.
1. Books
2. Websites
3. Newspapers

QUESTIONNAIRE DESIGN:
I make questionnaire to know which category of people satisfy for which kind of facilities they
are provided and what are their feedback and opinion about the product. In this category the
factors included are such as features, quality, price of the product and satisfaction of the
customers with their product, etc. this include 2 types of questionnaires.
Open ended questionnaires.
Closed ended questionnaires.
Open ended questionnaires: In this respondents are not bounded to answer within a set of choices
and can give their own views.
Close ended; questionnaires: in this respondents are bounded to answer within a set of choices.
I have designed my questionnaire of Close ended questions, Dichotomous, Multi choice as it is
more feasible to calculate and collect data from it and would be easily understand by everyone.

SAMPLE DESIGN:
Sample Unit: Customers of Pizza Hut
Sample Techniques: Random Sampling
Sample Size : 50

DATA ANALYSIS

Data analysis was done with the help of Simple percentage and graphical method. Pie and
Bar chart was used to represent data.

LIMITATIONS OF STUDY
1. I have considered Ahmedabad City for survey because of time and cost.
2. Finding of the study was based on the assumptions that respondents have given correct
information.
3. Information provided by respondents may be biased.
4. The sample size is comparatively very small compared to the population and there are
chances that it may not represent the whole population.
5. The time and cost factors has affected the size of the sample.
6. The study is academic in nature.
7. The final conclusion can be also affected by some of the extraneous variables.

CHAPTER 5
DATA ANALYSIS AND INTERPRETATIONS

1. When you hear the word Pizza, does Pizza Hut has come in your Mind?

 Yes

No

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

40

80%

NO

10

20%

Total

50

100%

INTERPRETATION

It is inferred from the above graph that majority of the population surveyed has said
Yes, that when hear the word Pizza, Pizza Hut is the name that they recall. Recall
ratio is more for Pizza Hut, compared to other brands.

2. In your family who likes to go to Pizza Hut?

Children

Parents

Everyone

No one

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Children

12

24%

Parents

14%

Everyone

28

56%

No one

6%

Total

50

100%

INTERPRETATION
24% people says that children like the most to go to Pizza Hut, 14% people says
parents like to visit it and only 6% says that no one likes to visit Pizza Hut but the
large number of people says everyone likes to go to Pizza Hut. This shows that Pizza
Hut is visited by all the family members and generally everybody from the family
visits the store.

3. With whom do you like to go Pizza Hut?

Friends

Family

Alone

Other

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Friends

12

24%

Family

14

28%

Alone

10%

Other

19

38%

Total

50

100%

INTERPRETATION
In the survey, it is inferred that 24% people prefer to go with friends and 28% like to
go with family. Very small percent that is 10% say that they visit Pizza Hut alone &
38% of the survey said that they go with others which include their working
colleagues and even neighbours.

4. How often do you go to Pizza Hut?

Once a week

More than once a week

Once a month

Very rarely

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Once a week

15

30%

More than once a week

20

40%

Once a month

11

22%

Very rarely

8%

INTERPRETATION
Survey says that 30% of the respondent visit Pizza Hut once a week, 40% says they
visit more than once a week, 22% say they visit once a month & only 8 % says they
visit very rarely. It is observed that the frequency of visiting the store is on a more
frequent basis, due to various reasons.

5. With the introduction of new variety of Pizza has your number of visits increased?
Yes

No

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

36

72%

NO

14

28%

INTERPRETATION
It is seen that there is a direct correlation with the introduction of new variety of
Pizza and the frequency of visiting Pizza Hut. 72% people agrees that with the
introduction of new variety of Pizza in menu, the number of visits has increased and 28% disagrees with
this.

6. What do you like the most in Pizza Hut?

Food

Ambience

 Service

Other

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Food

22

44%

Ambience

12

24%

Service

11

22%

Other

10%

INTERPRETATION
It is the quality of Food followed by Ambience that is liked the most at Pizza Hut by
the respondents. 44% people answered that they like the food of Pizza Hut, 24%
likes its ambience, 22% likes the service & the 10% likes other things. The major

driving forces for Pizza Hut is the quality of the food that they serve to the
customers

7. How do you rate the service in Pizza Hut?

Very good
Average

Good
Bad

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

Very good

31

62%

Good

13

26%

Average

10%

Bad

2%

INTERPRETATION

The service standards at Pizza Hut being an MNC are of international standards and
the respondents have rated the same with majority (62%) of them voted for Very
good followed with 26% who voted Good and than Average by 10% and Bad by 2%.
It can be concluded that not only the Quality of the food but the service level given
at Pizza Hut is also equally good.

8. Do you think Pizza Hut provides 100% Hygienic product?

Yes

No

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

46

92%

NO

8%

INTERPRETATION

From the survey it is observed that 92% people believes that Pizza Hut Provides
hygienic product and the rest 8 % beliefs that it does not provide hygienic product

9. Are you aware that Pizza Hut undertakes social activities for the growth of children and other needful
people?

Yes

No

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

34

68%

NO

16

32%

INTERPRETATION
It is observed from the survey that 68% people are aware about the Pizza Hut
undertaking of social activities for the growth of children and other needful people while, rest are
unaware about the same.

10. What is the distance of the nearest Pizza Hut from your place?

>2k.m.

<2k.m

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

17

34%

NO

33

66%

INTERPRETATION
66% people says that Pizza Hut is more than 2 kms from their place where as 34%
People say that it within 2 kms. There should be more Pizza Hut restaurant or caf in
the city so that it can be easily approachable to people.

11. Do you go to any other fast food shop also?

 Yes

No

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

YES

44

88%

NO

12%

INTERPRETATION
88% people states that they visit to other fast food shops also but 12 % people says
that the do not visit any other fast food shop. The Percentage of loyalty towards the
same brand is seen less, since the food industry is very volatile due to the taste
factor.

12. If yes then which one?

 K.F.C

Dominoes

Subway

Other

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

K.F.C

12

27.27%

Dominoes

14

31.81%

Subway

10

22.72%

Other

18.18%

INTERPRETATION
It is inferred that 27% people visit K.F.C., 32%people visits dominoes, 23%people
visits subway& the rest 18% people visits other fast food stores. Most of the people
visit different restaurant for different type of food and taste.

13. How much you are willing to spend at your visit?

< Rs.100

> Rs.100

SL.NO

OPTIONS

IN NUMBER

IN PERCENTAGE

< Rs.100

23

46%

> Rs.100

27

54%

INTERPRETATION
54% of the respondents agree that they are willing to spend more than Rs 100
during their visit to Pizza Hut and 46% of the respondent say that they are ready to
spend less than 100 per head during their visit to Pizza Hut. Also it is inferred that

the meal / lunch /snacks that are available at Pizza Hut are affordable and can be
managed even below Rs 100.

CHAPTER 6
FINDINGS

Following are the findings of the study

Majority of the population surveyed has said when they hear word Pizza, Pizza Hut
comes to their mind.

Majority of the people say that everyone likes to go to Pizza Hut, 24% people says that
children like the most to go to Pizza Hut, 14% people says parents like to visit it and only
6% says that no one likes to visit Pizza Hut.

24% people prefer to go to Pizza Hut with friends and 28% like to go with family. Very
small percent that is 10% say that they visit Pizza Hut alone.

30% of the respondent visit Pizza Hut once a week, 40% says they visit more than once a
week, 22% say they visit once a month & only 8 % says they visit very rarely.

72% people agrees that with the introduction of new variety of Pizza, the number of visits
has increased.

44% people answered that they like the food of Pizza Hut, 24% likes its ambience, 22%
likes the service.

62% of people voted for very good service level by Pizza Hut followed with 26% who
voted Good and then Average by 10% and Bad by 2%.

92% people believe that Pizza Hut Provides hygienic product and the rest 8 % beliefs that
it does not provide hygienic product.

68% people were aware that Pizza Hut undertaking of social activities for the growth of
children.

66% people says that Pizza Hut is not within 2 kms from their place where as 34% people
say that it within 2 kms.

88% people states that they visit to other fast food shops also but 12 % people says that
the do not visit any other fast food shop.

27% people visit K.F.C., 32%people visits dominoes, 23%people visits subway& the rest
18% people visits other fast food stores.

54% of the respondents agree that they are willing to spend more than Rs 100 during their
visit to Pizza Hut

CHAPTER 7
SUGGESTIONS

Following are the suggestions:

As majority of the population surveyed said when they hear word Pizza, Pizza Hut comes
to their mind. Pizza Hut should focus on advertising other food products also so that
people come not only for burger but for other food items also.

Pizza Hut should project itself as restaurant for every age of people instead of focusing
on one segment.

As Pizza Hut has to compete with other MNC restaurants like Dominos , KFC, Subway
and other local restaurants, it has to provide proper ambience, quality of food and service
with better and cheaper rate.

There should be more varieties of food items in menu so that people should have all the
things in one place.

More focus on hygiene and healthy food should be there so that people like to come
frequently.

There should be more new variety of Pizza in menu to attract more people.

There should be more Pizza Hut outlet so that it should be within reach of people and people
come easily.

There should be more advertising in different media so that there is awareness about the
Pizza Hut outlet.

CHAPTER 8
BIBLIOGRAPHY

BOOKS

PRINCIPLES OF MARKETING by PHILIP KOTTLER

S.P.Sharma, Quantitative Methods,first edition:2005
C.B.Gupta Schiffmen, Consumer Behaviour, fifth edition2007

WEBSITE

www.pizzahut.com

www.wikipedia.com

www.hindustantimes.com

CHAPTER 9

ANNEXURE

QUESTIONNAIRE

Name:______________________________
Age:________________________________
Contactnumber:______________________

1.When you hear the word Pizza, does Pizza Hut has come in your Mind?

Yes

No

2. In your family who likes to go to Pizza Hut?

Children

Parents

Everyone

No one

3. With whom do you like to go Pizza Huts?

Friends

Family

Alone

Other

4. How often do you go to Pizza Hut?

 Once a week

More than once a week

Once a month

Very rarely

5. With the introduction of new variety of Pizza, has your number of visits increased?
Yes

No

6. What do you like the most in Pizza Hut?

Food

Ambience

Service

Other

7. How do you rate the service in Pizza Hut?

Very good

Average

Good

Bad

8. Do you think Pizza Hut provides 100% Hygienic product?

Yes

No

9. Are you aware that Pizza Hut undertake social activities for the growth of children and other needful
people?

 Yes

No

10. What is the distance of the nearest Pizza Hut from your place?
>2k.m.

<2k.m

11. Do you go to any other fast food shop also?

Yes

No

12. If yes then which one?

K.F.C
Subway

Dominoes
Other

13. How much you are willing to spend at your visit?

> Rs.100

< Rs.100