Type: Wholly owned subsidiary

Industry: Restaurants

Founded: Wichita, Kansas, U.S.A (1958)

Founder(s): Dan and Frank Carney , Employees: 140,000+

Headquarters: 7100 Corporate Drive Plano, TX 75024, U.S.

Number of locations: 15,000 worldwide (as of 2012)

Key people: David C. Novak, Chairman, Scott Bergren, President

Products: Italian-American cuisine pizza · pasta · desserts

Parent: Pepsi Co: (1977–1997), Yum! Brands (18997–present)

Pizza Hut is an American restaurant chain and international franchise that offers different styles of

pizza along with side dishes including salad, pasta, buffalo wings, breadsticks, and garlic bread.

Corporately known as Pizza Hut, Inc, it is a subsidiary of Yum! Brands, Inc. Pizza Hut, the first

International Chain Restaurant in Bangladesh, opened its flagship restaurant in 2003 at Gulshan in

Dhaka. From the day of its launching Pizza Hut remains the acknowledged leader of the Pizza

Industry, evident from the continuous crowds the restaurant successfully draws in. Pizza Hut has

over 15,000 outlets across 100 countries. Following its grand success in Dhaka, the Chittagong

outlet was opened in September 2005 and later on in Cox’sbazar as well.

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Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first

International Chain Restaurant in Bangladesh, and went on to sign the contract to become the

franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are

subsidiaries of the world’s largest restaurant company Yum! Restaurants International. In a span of

ten years, TFL has opened 5 Pizza Hut and 11 KFC outlets so far throughout the country.

Pizza Hut Franchise Information

Initial Franchise Fee: $25,000

Total Investment: $1.3M to $3M

Net worth requirement: $1M

Cash liquidity requirement: $360K

Pay an annual 6.5% royalty on your profit.

Must commit to building at least 3 restaurants over 3 years

Term of Franchise Agreement: 20 years

Sources:

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1) http://en.wikipedia.org/wiki/Pizza_Hut

2) http://www.pizzahut.com/

3) http://www.pizzahutfranchise.com/

4) http://www.startupbizhub.com/how-to-start-your-pizza-hut-franchising-

business.htm

5) http://www.startingfranchise.in/2012/11/Opening-Pizza-Hut-Franchise-

India.html

Menu of Pizza Hut

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More menus of Pizza Hut

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Item Name Price(Taka) Item Name Price(Taka)

Pizza 2person 940 Mushroom 450

Pizza 4person 1750 Chicken Mushroom 500

Pizza 6person 2320 Shrimp Mushroom 500

Pasta 2person 1050 Garlic Bread 130

Pasta 4person 2080 Garlic Bread platter 280

Arabiatta 400 Spicy Garlic Mushroom 380

Chicken Arabitta 450 Garden salad 200

Hawaiian salad 220 Red n hot 1150/1500

Pasta mint salad 300 Latin spicy hot, chicken Italia

1300/1650

Garden salad 200 Hawaiian salad 220

Salad bar 400 Cheese lover, veggie lover 250-1200

Onion rings 220 Creamy spinach mushroom 500

Shrimp cocktail 280 Spicy garlic mushroom 380

Potato shell with filler 300 Bolognaise with meatball 450

Spanish delight 1150/1500 Beef lover, BBQ chicken 300-1350

Garlic bread platter 280 Beef Arabiatta 450

Veggie supreme 300-1350 Chicken exotica, spicy beef 300-1350

Rustica 300-1350 Chicken classic 380-1700

Seafood symphony 380-1700 Latin Spicy hot 380-1700

Beef Lover BBQ Chicken Veggie Lover Chicken Hawaiian

Veggie Supreme Chicken Supreme Beef Pepperoni Seafood Symphony

Salads Breads Pasta

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SWOT analysis of Pizza Hut

Strengths:

Innovative range of pizzas under one roof

Part of the largest restaurant chain in the world

Food attracts people of various ranges from young to old.

Over 18,000 franchises around the world

Pizza Hut sits on top of global full-service restaurant tree

Quick home delivery services.

Sound financial situation and international turnover.

Hygienic food and quick service.

Famous television advertising

They are ISO(International Standard Organization) Certified

Weaknesses:

High price for every menu.

Franchise management.

Loyal customers are feeling that the satisfaction of the pizzas is declining.

There are complex computer systems and internal conflicts from franchisees.

There is a lack of an organic pizzas, which will limit the target market.

They are providing less range of products comparatively with high prices. They are more

focused on Western taste instead of Eastern and Asian.

Obviously, Pizza Hut is not the low cost producer. They rely on their quality pizza and

good service to account for their higher prices

Rising competition undermines Pizza Hut as consumers go for greater convenience

Rising cheese costs threaten margins

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Opportunities:

New Pizzas with different crust sizes and flavours.

Pizza Hut expands Indian market menu and looks to old favourite to bolster sales.

Diversification of new products can increase their market shares.

Venture more into home delivery.

Pizza hut can come up with the new products considering taste of people as like

McDonalds

They can reduce their prices because of more resources.

Threats:

Threat from Dominos pizza, also from Mc Donald’s who have tried to introduce a new

meal that is a Pizza called: McPizza.

Other local restaurants can affect their market share by providing pizzas with lower price.

Bird flu.

Health conscious people.

Social factors can affect their image as a Western organization.

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Type: Subsidiary

Industry: Fast food restaurant

Founded: 1930 in North Corbin, Kentucky (original) 1952 at 3900 South State St, Salt Lake City, Utah (franchise)

Founder(s): Harland Sanders

Headquarters:1441 Gardiner Lane, Louisville, Kentucky, United States (Operational Headquarters) 1209 North Orange St, Wilmington, Delaware, United States (Incorporation)

Number of locations: 18,000 (2012)

Key people: David C. Novak, Chairman and CEO of Yum! BrandsRoger Eaton, Chairman and CEO of KFC

Products: Fried chicken, chicken burgers (chicken sandwiches US), wraps, French fries, soft drinks, salads, desserts, breakfast

Revenue: US$15 billion (2011) Parent Yum! Brands

What made us great is still what makes us great. KFC Corporation, based in Louisville,

Kentucky, is one of the few brands in America that can boast a rich, decades-long history of

success and innovation. It all started with one cook who created a soon-to-be world famous recipe

more than 70 years ago, a list of secret herbs and spices scratched out on the back of the door to his

kitchen. That cook was Colonel Harland Sanders of course, and now KFC is the world's most

popular chicken restaurant chain, specializing in that same Original Recipe, along with Extra

Crispy chicken, home-style sides and buttermilk biscuits. There are more than 18,000 KFC outlets

in 120 countries and territories around the world.

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Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first

International Chain Restaurant in Bangladesh, and went on to sign the contract to become the

franchisee of Kentucky Fried Chicken (KFC) in the year 2006. Both Pizza Hut and KFC are

subsidiaries of the world’s largest restaurant company Yum! Restaurants International. In a span of

ten years, TFL has opened 5 Pizza Hut and 11 KFC outlets so far throughout the country.

KFC Franchise Information

Initial Franchise Fee: $45,000

Total Investment: $1.2M to $1.8M

Net Worth: $1.5M to $2.5M

Liquid asset: $750,000

Royalty Fee: 5%

Advertising Fee: (Local 2.5% of gross revenues & National Cooperative Advertising 4.5% of gross revenues)

Renewal Fee: $6,750

Term of Agreement: 20 years

Sources:

1) http://en.wikipedia.org/wiki/KFC

2) http://www.kfc.com/about/

3) http://www.kfcfranchise.com/faqs-qsr-restaurant.php

4) http://www.thefranchisemall.com/franchises/details/10004-0-kfc.htm

5) http://www.franchisedirect.com/foodfranchises/kfc-franchise-07095/ufoc/

Menu of KFC

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Item Name Price(Taka) Item Name Price(Taka)

Chicken Snacker 100 Potato Wedges 125

Chicken Snacker box 170 Chicken rice meal 190

Strips Snack 190 Spicy Thai Chicken rice 300

Snack Box (1pic chicken & Fries)

170 Hot Zinger meal 375/395

Popcorn Chicken 160 Zinger meal 370/390

Boneless chicken strips 200/395 Curry crunch chicken 290/575/1145/1700

Hot wings 150/290 2pcs chicken fries meal 350

Bucket meal 2350 Krushers 140/170/180/190/200

Bucket Hot& crispy 830/1250 Desserts 80-150

Hot zinger 250 Veggie zinger 210

Mixed rice 85 Chicken zinger 240

Combo 1/2/3/4/5 250/300/600/1200/999 Burgers 240/250/210

Sides 30-125 Packaged water 80-90

tea 50 Coffee 60

More menus of KFC:

Krushers Soft Drink Game Box Chicken Bucket Box master Chicken Thali

Veg Finger Coleslaw Fries Snack Box Corn on the cob Sundae Soft Twirl

Zing Kong Snacker(chicken & veggie) Brownie Sundae

SWOT analysis of KFC

Strengths:

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Second best global brand in fast food industry in terms of value ($ 6 billion)

KFC customer base remained loyal to the KFC brand because of its unique taste.

World’s largest restaurant company in terms of system restaurants.

Chicken -- made with the same secret blend of 11 Ranksherbs and spices highest among all chicken restaurant chains for its convenience.

Menu variety and strong trademarks recipes.

KFC has continued to dominate the dinner and take out segment of the Industry.

Existing in the local market for years, therefore, knowing people’s tastes and whims.

They are ISO (International Standard Organization) certified.

Weaknesses:

Losing market share as other Chicken chain increased sales at a faster rate.

Lack of knowledge about their customers.

Question of over franchising leads to loss of control and quality.

Lack of focus on R&D.

Unhealthy food menu

High employee turnover

Lack of strong marketing efforts

The company has entered so many markets in the past in the United States that its growth rate was about only one percent an year.

The company is said to not to pay attention to its resource and development.

Opportunities:

Introducing new products to its only chicken range.

Introducing new services and technologies.

Increasing demand for healthier food.

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With more investments the company can definitely make its position stronger in the food

industry

Home meal delivery.

Employment opportunities for part time seeker especially for university goings.

Focusing on more nutrition’s.

Threats:

Bird flu

Saturated fast food markets in the developed economies.

Trend towards healthy eating.

Local fast food restaurant chains.

Government regulations.

Change in tastes.

Currency fluctuations.

Lawsuits against KFC.

Type: Public

Traded as: SET: CPF

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Industry: Food and Beverage

Founded: January 17, 1978

Headquarters: Bangkok, Thailand

Key People: Adirek Sriratak, ( President & CEO)

Products: Animal Feed, Animal Breeder, Meat and Food

Parent: Charoen Pokphand Group

Charoen Pokphand Foods Public Company Limited is Thailand's largest agribusiness firm. It is

a publicly traded subsidiary of the Charoen Pokphand Group. Charoen Pokphand Foods Public

Company Limited (CPF), a company of the CP Group, is the leading agro-industrial and food

conglomerate in Thailand. The greater part of the Company production bases is in Thailand with

some operating overseas. The Company’s core business lines are livestock and aquaculture. The

livestock operations include chicken broiler, chicken layer, duck and swine. For aquaculture

business, the two main marine animals are shrimp and fish.

C.P. Bangladesh Company Ltd. is a sister concern of C.P. Group Thailand. C.P. Bangladesh Co.,

Ltd. is incorporated in Bangladesh on 14th January 1999 doing business in the Agricultural

industry, Poultry sector. Though C.P. Bangladesh Co., Ltd is not in Bangladesh many years, but in

this shorter period it has established its own Feed mills, Breeder Farm, Hatcheries, G.P. farm, fish

feed mill all over the country. C.P. Bangladesh Co., Ltd has established with a vision “To be a

leader in Agro-business industry in Bangladesh” and each day it is getting closer to its vision. C.P.

Bangladesh Co., Ltd now produce Poultry feed (both layer and broiler), breeder feed, fish feed and

cattle feed, and also animal health medicine.

C.P. Bangladesh Co. Ltd. is a sister concern of C.P. Group Thailand. C.P. Bangladesh Co.

Ltd. is incorporated in Bangladesh on 14th January 1999 doing business in the Agricultural

industry, Poultry sector. Though C.P. Bangladesh Co. Ltd. is not in Bangladesh many years, but in

this shorter period it has established its own Feed mills, Breeder Farm, Hatcheries, G.P. farm, fish

feed mill all over the country. They direct invested in Bangladesh by giving the tax to government

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(Ministry of commerce) without any licensing and franchising. They have established a production

factory house in “Hemayetpur” and supply the materials for the fried chicken in the different

branch in Dhaka and Chittagong.

C.P. Bangladesh Company Limited was established since 1998 under operation in Agro-Industrial

and Food Business by dedication of providing high quality of animal feed mill, farming operation

and also processing tasteful, nutritional and hygienic food products under branding of ‘‘FIVE

STAR CHICKEN’’ that deliver to all customers in Bangladesh. It Started on April 7, 2008 with a

mission- “Kitchen of Bangladesh. In Bangladesh they have started their fried chicken business

through licensing with an amount of TK 250,000. Currently they are operating their fried chicken

business across Bangladesh with their 201 branches among them 104 branches are in Dhaka.

The Charoen Pokphand Group is the largest business conglomerate in Thailand. Its largest

subsidiary is Charoen Pokphand Foods, which achieved 116.5 billion baht in revenue in 2005,

earning a profit of 6.747 billion baht. Apart from agribusiness, the family-owned conglomerate's

interests range from retailing, as the franchisee of Thailand's 7-Eleven stores, to

telecommunications, as the owner of True Corporation, a mobile telephone service provider,

Internet service provider, and cable television company. CP Subsidiaries also include PRC

registered Super Brand Mall Lotus center chain.

The company has grown into a global business, with more than 250 subsidiaries in 20 countries,

including China, where it is known as the Chia Tai Group.

CP fried chicken’s methodologies of the business in Bangladesh are as follows:

This is a Foreign Direct Investment (FDI).

Operating as a licensing company in Bangladesh.

Initial licensing Fee: TK 250,000

Renewal Fees: Not disclosed.

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Sources:

1) http://www.cpfworldwide.com

2) http://en.wikipedia.org/wiki/Charoen_Pokphand_Foods

3) From Street corner retailers.

Menu of CP fried chicken

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Item Name Price (Tk) Item Name Price (Tk)

Jumbo set 790 Wing 60

Party set 460 Happy hot Dog 60

Breast 115 Massala chicken 55

Thigh 90 Spicy chicken 50

Leg 60 Chicken ball 25

Chicken sausage 25 Hot wings 25

SWOT analysis of CP fried chicken

Strengths:

Low price compare to KFC & Pizza Hut in Bangladesh.

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More branches than KFC & Pizza Hut in Bangladesh.

More convenience than KFC & Pizza Hut in Bangladesh

Horizontal raw material sources in Bangladesh.

Sound financial situation and international turnover.

Food attracts people of various ranges from young to old.

Existing in the local market for years, therefore, knowing people’s tastes and whims.

Weakness:

Don’t have exclusive decorations compare to pizza Hut & KFC.

Loyal customers are feeling that the satisfaction of the pizzas is declining.

Lack of monitoring & controlling system.

Lack of focus on R&D.

Lack of strong marketing efforts.

Lack of knowledge about their customers.

Lack of menu varieties.

No sitting options like Pizza Hut & KFC.

Opportunities:

They can reduce their prices because of their horizontal sources of raw materials.

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With more investments the company can definitely make its position stronger in the food

industry

Home meal delivery.

They can attract more people with their consisting lower prices.

Threats:

Bird flu.

Health conscious people.

Local fast food restaurant chains.

Government regulations.

They need have more product offerings compare to KFC & Pizza Hut

Their services should be improved.

Franchising

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Franchising is the practice of using another firm's successful business model. The word 'franchise'

is of Anglo-French derivation - from franc - meaning free, and is used both as a noun and as a

(transitive) verb. For the franchisor, the franchise is an alternative to building 'chain stores' to

distribute goods that avoids the investments and liability of a chain. The franchisor's success

depends on the success of the franchisees. The franchisee is said to have a greater incentive than a

direct employee because he or she has a direct stake in the business.

Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a

franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the

operator pays the supplier a fee.

Thirty three countries, including the United States, and Australia, have laws that explicitly regulate

franchising, with the majority of all other countries having laws which have a direct or indirect

impact on franchising.

Foreign Direct Investment :( FDI)

According to the International Monetary Fund, foreign direct investment, commonly known as

FDI, "... refers to an investment made to acquire lasting or long-term interest in enterprises

operating outside of the economy of the investor." The investment is direct because the investor,

which could be a foreign person, company or group of entities, is seeking to control, manage, or

have significant influence over the foreign enterprise.

Licensing:

Licensing is the process of leasing a legally protected (that is, trademarked or copyrighted) entity –

a name, likeness, logo, trademark, graphic design, slogan, signature, character, or a combination of

several of these elements. The entity, known as the property or intellectual property, is then used in

conjunction with a product. Many major companies and the media consider licensing a significant

marketing tool.

Interpretations of our analysis

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Yummy! Let’s go for Pizza Hut or KFC or CP. Yes, these words are becoming very common for

city people in Bangladesh. What more can somebody ask for! In the context of Bangladesh,

whenever we talk about party or to hang around with friends or families in many cases Pizza Hut

or KFC or CP gets priority among all other choices we have. Though their food items are little bit

more expensive than our traditional foods, but still we love it. This time we are not having any of

their food items, we are just going to have an analysis of these three companies.

For the purpose of our analysis, we had to gather information’s both from the primary and

secondary sources. Collecting information’s from the secondary sources were easy compare to

primary sources. While we went to collect raw data from the primary sources, we found the

managers of those restaurants very uncomfortable of sharing any information’s and that made our

journey very difficult. After being refused from them, we went to their corporate offices but still

got denied. Since we had to complete our analysis, somehow we did manage some of the

information’s about these companies and which we believe can be helpful for concluding our

analysis.

From the information’s we have found, both Pizza Hut & KFC were originated from U.S.A, and

currently Transcom Foods Limited (TFL) had brought both Pizza Hut & KFC into Bangladesh

though franchising and off-course with the help of world’s largest restaurant company named

“Yum! Restaurants International” It’s kind of revolution for the food industry in our country.

Transcom Foods Limited (TFL) started its journey in 2003 as a franchisee of Pizza Hut, the first

International Chain Restaurant in Bangladesh, and went on to sign the contract to become the

franchisee of Kentucky Fried Chicken (KFC) in the year 2006. . In a span of ten years, TFL has

opened 5 Pizza Hut and 11 KFC outlets so far throughout the country. Very surprisingly their

popularity is increasing in our country day by day even though their product offerings are

different. The way they are dominating the world’s restaurant industry through their product and

service offerings, similarly they are dominating in our country as well. Most of the time, they are

trying to reach the higher income people. Whereas CP (Charoen Pokphand) is another food

company which has targeted all classes of people in our country. Basically CP has originated from

Thailand and started it’s business in our country as an agro based industry. But later on, in the year

of 2008, they had expanded their business in food industry through licensing. In Bangladesh they

have started their fried chicken business through licensing with an amount of TK 250,000.

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Currently they are operating their fried chicken business across Bangladesh with their 201

branches among them 104 branches are in Dhaka. Even though they are having more branches

compare to Pizza Hut & KFC, but their product offerings and service quality especially, their

locations and the environments are not that good like Pizza Hut & KFC. Their internal and external

decoration is also different and looks less exclusive than Pizza Hut & KFC. But CP’s food prices

are way cheaper than Pizza Hut & KFC. Moreover, CP’s initial investments and expenses are less

than Pizza Hut & KFC. From the above mentioned analysis, we can say that, both Pizza Hut &

KFC are fulfilling peoples demand by assuring their product & service qualities as well as

environments whereas, CP is not covering any of those issues rather they are more focusing on

cheaper product price.

Comparative analysis of these three companies:

Company Franchising

Cost

Licensing

Cost

Initial

Investment

Location Loyalty Popularity Product

Price

Service Customer

Level

Pizza Hut High N/A Very High Moderate Very

High

High Very

High

Excellent High &

upper

middleKFC Very High N/A Very High Moderate Very

High

Very High High Excellent High,

upper

middle &

middleCP N/A Low Moderate Excellent Moderate Moderate Moderate Low Middle &

low

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Company Product

quality

Product

Variety

Product

offerings

Availability Home

delivery

Inspection Environment Customer

SatisfactionPizza Hut Excellent Various Active Very Few Yes Frequent Excellent Very GoodKFC Excellent Various Very

active

Few Yes Frequent Excellent Very good

CP Good Limited Stable Available N/A Les

Frequent

Moderate Good