Pizza Hut is a pizza chain restaurant American multinational company. Frank Carney and Dan Carney founded the pizza chain restaurant company in 1958. The company has established a network of approximately 19866 pizza chain restaurants across the world. Today, we’ll discuss the PESTLE analysis of Pizza Hut; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Pizza Hut
Some of the main political factors in the Pizza Hut PESTLE analysis are as follows;
I-Government Policies
The government’s consumer health and safety protection policies and regulations are very strict for food chain restaurant companies like Pizza Hut. They comprise of consumer protection, health, and safety, fresh ingredients, and ethical and responsible sourcing of raw materials and supplies. However, the objective is to ensure the health and safety of ordinary consumers to avoid any type of food poisoning crisis.
II-Trade Regulations
Pizza Hut is operating its pizza chain restaurant business in various countries worldwide; the company sources raw materials from multiple global supplies. The trade policies and regulations of different countries are variable to the US government. For instance, if the country doesn’t have good and friendly diplomatic relations with the US government, they would increase taxes and other regulatory requirements to reduce imports and exports.
III-Political Stability
A stable political environment plays a crucial role in the growth and sale of businesses and companies. In case of political turmoil, roadblocks, and procession; it negatively impacts the deliveries of food ingredients and supplies to the production facilities; along with impacting the freshness of ingredients. Pizza Hut chain restaurants won’t serve their customers delicious and fresh pizza on time.
Economical Factors Affecting Pizza Hut
Some of the main economic factors in the Pizza Hut PESTLE analysis are as follows;
I-Consumer Spending Habits
Multiple economic and financial factors impact consumer spending habits; they comprise their employment status, income level, disposable income, purchasing power, and shopping trends. When a country has a stable economic and financial environment, then it encourages people to shop and buy whatever they like. Pizza Hut should keep in mind the consumer spending patterns of different countries.
II-Inflation
Pizza Hut is operating its pizza chain restaurant business worldwide, and the inflation rate of countries impacts the company’s retail sales. For instance, when the federal government and the central bank start printing more currency notes than the reserve, it reduces the per unit value of all the currency notes. As a result, the retail price of products and goods would increase, and they become expensive for many ordinary users.
III-Expensive Material
The operational cost of Pizza Hut has been increasing significantly for the past few years. It is due to the higher fuel price, expensive materials and ingredients, high labor costs and salaries, currency exchange rate differences, and others. As a result, it negatively impacts the retail chain, revenue, and profitability of the company.
Social Factors Impacting Pizza Hut
Some of the main social factors in the Pizza Hut PESTEL analysis are as follows;
I-Food Eating Habits
The food-eating habits and tastes of customers are different in various countries worldwide. For instance, some customer markets prefer crispy pizza, oily, chicken, beef, and other types of pizzas. Pizza Hut should keep in mind the needs and demands of different consumer markets before launching its food services in a particular region.
II-Healthy Food Trends
Healthy dietary food trends have been increasing significantly for the past few years. Nowadays, customers prefer less oil, low carbohydrates, and low-sugar food items. They are saying no to all the processed food meals. Pizza Hut should keep in mind these growing trends, and offer dietary pizza to the customers.
III-Cultural Sensitivity
The cultural factor plays a key role because some cultures are highly sensitive to particular types of food. For instance, Muslim countries are highly careful and cautious about the Halal meat and they won’t buy the pizza if the meat inside the pizza is not halal. Pizza Hut should be familiar with the cultural sensitivity towards different types of food.
Technological Factors Affecting Pizza Hut
Some of the main technological factors in the Pizza Hut PESTEL analysis are as follows;
I-Online Pizza Order and Delivery
Pizza Hut has invested a significant amount of capital resources in the development of online pizza stores and delivery systems. It allows the company to offer a seamless shopping experience to the customers by helping them to order the pizza with few simple clicks and the platform would deliver it to their home address.
II-POS Technology
Pizza Hut has invested significant resources in the POS (point of sale) technology and it is much more than just a payment method. It helps them comprehend and analyze consumer habits, shopping trends, customer demands, and others. The key insight would help the company to improve its customer satisfaction level.
III-Food Cooking Technology
Pizza Hut also employs the latest food cooking and kitchen tools, equipment, and appliances. It allows the pizza chain restaurant brand to efficiently perform its cooking operations, maintain the freshness of ingredients over time, and reduce the waste of resources. Efficient operations would help the company to increase productivity.
Legal Factors Impacting Pizza Hut
Some of the main legal factors in the Pizza Hut PESTEL analysis are as follows;
Regulatory Compliance
Pizza Hut needs to comply with the regulations and policies of different countries. They comprise health and safety regulations, consumer protection laws, fresh ingredient requirements, labor laws, and other legal requirements. Regulatory compliance would help the pizza chain restaurant business to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Pizza Hut
Some of the main environmental factors in the Pizza Hut PESTEL analysis are as follows;
Sustainability Initiative
Pizza Hut should make a strong commitment to the environmental sustainability initiative. They comprise of taking steps like using the renewable sources of energy in its restaurants, biodegradable packaging, and sustainable production and processing methods. Sustainability initiatives would help the brand to keep up with the growing customer market trends.
Conclusion: Pizza Hut PESTLE Analysis |PESTEL Analysis of Pizza Hut |External Environmental Analysis of Pizza Hut | Strategic Analysis of Pizza Hut
After an in-depth study of the pestle analysis of Pizza Hut; we have realized that Pizza Hut is the world’s leading pizza chain restaurant brand. If you are learning about the Pizza Hut PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
