PIZZA HUT AFRICA
THE RETURN OF THE HUT
PIZZA HUT AFRICA
PIZZA HUT AFRICA RECENTLY CELEBRATED THE OPENING OF THEIR 100TH STORE IN THE SUB-SAHARAN MARKET.
THE RETURN OF
THE HUT PROJECT MANAGED BY: MALVERN KANDEMWA The year 2008 was not a good year for Pizza Hut Africa. The American pizza franchise exited the South African market after a consistent decline in commercial success and challenges relating to customer retention. Fast forward ten years later, to the year 2018, Pizza Hut Africa celebrated the opening of their 100th store in the sub-Saharan market.
“T
he South African fast-food space is among some of the most competitive foodservice markets in emerging economies, boasting a total of just under 10 million customers who actively support the sector. The market is dominated by multinational companies with sophisticated franchising systems, as well as locally founded food-chains, with decades of presence across the country and characterised by stiff competition. The exit of Pizza Hut in 2008 is fully a testament to this.
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The foodservice industry’s market value in South Africa was estimated to be around $2.7 billion in 2018 by analysts, a growth forecast proportionate to the rate of urbanisation taking shape across the country. The pace of urbanisation taking form in South African cities has boosted the growth of numerous businesses in the foodservice space. With more people moving to the city for employment and educational purposes, fast food chains are presented with a bigger demographic that needs their services.
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PIZZA HUT AFRICA
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WHEATA Wheata is a major player in the flour industry in Sudan and wider region with a milling capacity of 2000 tons per day. High quality wheat is imported from the top global producers stored at its strategic terminal in Port Sudan before being transported to Khartoum where it is milled within Wheata’s state of the art facilities. Producing high quality flour, bran and semolina as well as being a major distributor of yeast. The company plays a dynamic role in supplying the community with wheat flour which is a major food commodity in Sudan. All efforts are employed to maintain its supply to the community, hence assisting in the achievement of food security at the national and household levels, having 158 distribution centers across Sudan with teams that consist of qualified and experienced staff in the field of supervision, after sales service and technical support. Wheata is a leader in Food Safety being the first food manufacturing company in Sudan to achieve FSSC 22000. Wheata also both voluntarily and uniquely adopted the practice of fortification of wheat flour by Iron and Folic Acid (Vitamin B.9) the sole mill currently in Sudan doing so. This is a significant public health strategy which we are pleased to lead.
Creating Better Together Griffith Crown Foods (PTY) Ltd is a global food ingredients supplier based in South Africa, a result of the dynamic partnership between Griffith Foods™ and the Crown Food Group (a division of Bidcorp Food Africa). Proudly contributing to the now 20 years global relationship between Griffith Foods and YUM Brands, we are supplying into Pizza Hut Southern, East and West Africa. We believe in Creating Better Together™ and we live up to this promise by working directly with each franchisee in these markets. If you are in the QSR, food processing or snacks industry and want to learn more about what we can offer within Sub-Sharan Africa – please get in touch. Rohan du Toit, General Manager rohan.dutoit@griffithcrown.co.za Tel: +27 (0)10 271 1637 Building 23, Thornhill Office Park, 94 Bekker Rd, Midrand, 1686 SA We are on LinkedIn, also visit www.griffithfoods.com
Wheata undoubtedly complied with the high international standards that was set by Yum! for food safety and was capable to win the certification and become the sole supplier of the premium flour to Pizza Hut branches in Khartoum, Sudan, being the first Sub-Saharan mill to do so. The development continued in order to close supply chain gaps and Wheata became certified by Yum! For the second time suppling bread for KFC. Currently Wheata is developing a state-of-art high commercial bakery to supply a variety of bread under the brand name Warda. Wheata is part of group of privately-owned companies named Araak which is one of the largest and most successful commercial groups operating in Sudan. It is a diverse conglomerate of Sudanese companies engaged in a wide scope of industrial activities. The company was founded in the 1960s by Mr. Hassan Ibrahim Malik, and grown to become a powerhouse of Food, Engineering and Construction companies including being the sole bottler and distributor of PepsiCo and associated products in Sudan. Araak’s high international reputation was key in being the partner of choice for management and distribution of famous trademarks in Sudan, such as Frito-Lay’s, KraftHeinz and Friesland Campina.
www.araak.com/en/business/index/33/Milling
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PIZZA HUT AFRICA
THE SECOND COMING
Upon its 2014 return to the South African market, Pizza Hut Africa (under the Yum! Brands Inc umbrella) has carved out a place in many customers’ hearts through innovation, quality of service and being aligned to the expectations of the target market. The adjustments made to the business model seem to be effective. Prior to its 2008 exit, the franchise was popular amongst many South Africans for its large family-friendly sit-in arrangement. The current model focuses on convenience. The franchise has aggressively pursued the omnichannel operating model. Through adding more brick and mortar stores in highly targeted spaces, Pizza Hut has solidified its presence and visibility. Times have changed, and the digital saturation across the country (and the continent) has played into the company’s online opportunities. A wave of popularity for widespread online purchasing across multiple sectors (including the food services industry) has fully engulfed the South African consumer habits. This practice is gaining traction annually within the sub-Saharan market. Paving a way for a trendy and integrated approach for traditional brick and mortar establishments to have a dual presence known as an omnichannel strategy. Physical stores continue to play a critical role in the company’s revised strategy. Through understanding the ever-evolving trends of the food industry, Pizza Hut is able to deliver to both the traditional market and the digitally savvy new-age foodie culture.
was founded on a renewed approach. Eager to learn from previous failures, the company perceived the SA market as a stepping stone towards solidifying its footing in subSahara. The company has since increased its presence in the region, having launched a hundred stores in the highly enticing market. Customers have well received the franchise, certifying the success of the expansion into Africa. The mission to build a presence in 13 sub-Saharan countries and an additional 90 stores in North Africa speaks to the aggressive approach Yum! Brands Inc has undertaken since returning to the region. According to the reports circulated amongst foodservice franchisers, pizza is the 3rd most loved offering in the fastfood sector after chicken and
burgers. Pizza Hut has managed to consolidate this interest from the market through targeted advertising and a tailored experience for customers. Although numerous businesses in the foodservice sector have experienced business lows, with some having to face liquidation and buy-outs, Pizza Hut continues to experience growth along with other food franchises in its stable.
SECRET TO SUCCESS
So, what is behind the success of the pizza franchise? A wellexecuted business model is one of the key elements that need to be credited for the success of Pizza Hut Africa in emerging markets. Despite the franchise going through hard-ships and having a number of stores shut down in developed markets, the
“PIZZA HUT AFRICA HAS MADE VERY IMPRESSIVE STRIDES SINCE ITS RETURN TO THE SOUTH AFRICAN MARKET. THE BRAND STILL AIMS TO CREATE THE BEST CUSTOMER EXPERIENCE EVER.”
TARGET DRIVEN OPERATION
The return of Pizza Hut into the South African market
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PIZZA HUT AFRICA
company is doing extremely well in sub-Sahara. This can be attributed to the strict requirements for potential franchisees. The franchise is looking to continue forming business partnerships with individuals who have a reputable record in the food industry. One of the key requirements for potential franchisees is a proven ability to secure a minimum of 210 Pizza Hut delivery outlets. Potential franchise partners must also have access to verifiable development capital of R25 million. The current franchise partners have
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managed to push the brand to higher benchmarks while navigating a very fragile and competitive foodservice sector.
THE PROOF IS IN THE PIZZA.
One of the reasons that have kept the brand as a firm favourite in the markets it has experienced the most success in is the catalogue of meals on offer. The menu is very enticing, put together in a manner that sets the franchise apart from its competitors in the pizza business. Customers are given an option to create profiles on the website, simplifying the process of placing online orders. Once the profile is created, the customer can sign in, place an order, and opt to have the order delivered or collected from the nearest Pizza Hut location.
The offers range from easy on the pocket meals for one, to deliciously stacked combos known as tribe offers that customers can feast on in groups (ideal for family and workplace lunch meetings). There is a certain intrigue about how the meals on offer are structured. From the specials to sides and kiddies meals, to diversify their offering, Pizza Hut has also upped their game by including sweeter options on the menu. The Cholocate Pizza and Giant Choc Chip Cookies have won the franchise a very loyal following. Pizza Hut Africa has made very impressive strides since its return to the South African market. The brand still aims to create the best customer experience ever.
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PIZZA HUT AFRICA
WWW.PIZZAHUT.CO.ZA