Question

In 2015, Yum! Brands, Inc., the world’s largest quick-service restaurant company (Pizza Hut, Kentucky Fried Chicken, and Taco Bell), opened 577 new Pizza Hut restaurants and closed 456 others.

Required

If you were in charge of these decisions, what information would you want to collect?

Answer 1

The decision of opening of new Pizza Hut should be based on long term possibility of running the Pizza Hut at a prominent location, so as to enter first in the market having no competition presently. Once we enter first at any place, we get more chances to have a name, reputation & distinct image in customers mind.

With regards to closure of huts, if at all, we have opened new huts, & if we anticipate no further scope of business at all, or say our decision seems to us wrong, than looking to the possibilities of no business opportunity, we must close it immediately & try to open at other place with greater opportunity. We must take prompt action to rectify our mistake, not to adhere thereupon to hide our mistakes.

The information we would like to collect are:

a. Local Data as to opening and closing of stores at local level so as to access local competition

b. Financial Data such as Break even point, fixed costs,variable costs, gross margin ratios etc.

c. Preferences of Local Citizens and choices

d. Inflation, Consumer Price Index, Consumption Levels, Growth in Population, Industrial Development etc.