Repeatedly using the expired ingredients and cooking oil for ten days and one change, and the bottom line of Pizza Hut will be discarded under the pressure of the Pizza Hut?

Author:Blue Whale Finance Time:2022.07.21

"Food safety is the primary task of the company." In the annual report, Yum: China emphasized so much.

However, a few food safety incidents that occurred in Pizza Shengtai a few days ago can be described as flushing the face of Yum!

For more than thirty years of entering China, Pizza Hut has continued to accelerate the pace of expansion, and the number of stores has achieved a leap from more than 1 to 2,500. It is a pity that things are contrary to their wishes, but the stagnation of brand performance, the decline in sales of the same store, and multiple food safety issues. The various negative effects brought by the expansion make this young and middle -aged brand that just lived in the "year of standing" is in a deep crisis.

The issue of Pizza Hut Food Safety has attracted attention, and the raw materials of "expired" raw materials in many places are repeatedly revealed

The largest leisure restaurant brand in China has planted a big heel on the issue of food safety!

According to the Beijing News, from late June to early July this year, the reporter applied to enter the Pizza Hut Beijing Harmonious Plaza Store and Wei Gong Village Store. Waste; employees demolished the outer packaging and "turned into zero" of the expired ingredients; the frying oil was changed for ten days, and the relevant indicators exceeded the standard nearly double the standard.

Once the above situation is exposed, it has attracted great attention from netizens. Many people said that Pizza Hut made everyone's money, but made everyone "just bad rice." In addition, some consumers told the Blue Whale Finance reporter: "Pizza Hut has always been regarded as a parent -child restaurant, and often takes children over the weekend. Today I learned that they actually used expired ingredients and waste oil. Let the child eat! "

Public opinion continues to ferment. On the afternoon of July 20, in response to the food safety issues of the above stores, Pizza Hut China responded through the official Weibo issuance statement, saying that the company attached great importance to it, and immediately conducted a close store investigation of the two restaurants. However, this response was considered by netizens and was not sincere.

How long can the company's survey results be released? We are unknown for the time being. However, before that, the Market Supervision Bureau of Haidian District and Fengtai District of Beijing had taken a step forward to conduct law enforcement inspections on the catering unit involved. Subsequently, both stores had been investigated and punished according to law.

In addition, according to the Beijing News, the Market Supervision and Administration Bureau of many places across the country has also responded rapidly to conduct a surprise inspection of the Pizza Hop Store in the area. Among them, there are also two stores in Wuxi City. Investigation.

In this regard, Zhu Danpeng, vice chairman of the Guangdong Food Safety Promotion Association, told reporters from Blue Whale Finance that the Pizza Hut this incident was not accidental. As a catering chain brand, there must be its inevitable food problems in the store. This reflects that its quality internal control system has experienced a large leakage. At the same time, the company should be lacking in training and management of employees' entire standardization, process, standardization and other aspects.

Regarding the supply status and assessment requirements of the store, in an interview with Blue Whale Finance reporters, according to a store manager of a store in Beijing, the headquarters will send two to three times a week to the store, and then the store is out of stock to submit feedback from ordering system. In addition, the assessment will mainly look at the two major pieces of turnover and customer satisfaction, and the cost control is also part of it.

Direct -operated stores make mistakes, radical expansion strategies or difficult to blame

It is worth noting that in terms of past experience, the frequent food safety problems of chain brands are mostly existing in franchise stores. In the 2021 annual report, Yum! China also mentioned that due to the scale of Pizza Hut franchise stores, the brand may face food safety risks.

But this time, you do not memorize this "pot". It is reported that the above -mentioned stores are directly operated by Pizza Hut brand, and one of the stores have been punished for less than 4 months before the last time the expired ingredients were used. As a result, even in the area directly under the headquarters, Pizza Hut still had food safety problems many times, and repeatedly taught.

From the perspective of the industry, the emergence of this situation may also be related to Pizza Hut's radical expansion strategy.

It is understood that Pizza Hut was founded in 1958 and belongs to Yum! And has a brotherhood with KFC. In 1990, the brand opened the first restaurant in Beijing. In the domestic market at that time, Pizza Hut was alone.

Since then, Pizza Hut has gradually accelerated the pace of expansion. Since the establishment of the first domestic store, it took 20 years to expand the number of stores from 1 to 500, and then used it for 3 years, doubled the original store number to 1,000. However, Guoxin Securities pointed out that after the number of stores reached 1,000, Pizza Hut began to face the balance of store expansion and the efficiency of the same store. The growth of the same store was negative, but the growth rate of stores was between 5 ~ 10%.

Even so, Pizza Hut did not stop the pace of expansion, and even during the epidemic, the brand still retrograde the store with a rhythm of over 100. According to the financial report, as of the end of 2021, Pizza Hut has more than 2,500 leisure restaurants in more than 600 cities across the country, and the number is 6 times that of the most domestic western -style casual catering competitors in China. In this context, the proportion of brand direct -operated stores is close to 95%.

However, the above expansion income is chilling. Data show that from 2017 to 2021, Pizza Passenger revenue changed from US $ 2.093 billion to US $ 2.109 billion, which was basically the same. It can be said that the expansion of hundreds of stores has not even brought income growth to the brand.

In addition, in the first quarter of 2022, the sales of Pizza Hut's same stores fell 5%year -on -year, and the profit margin of the restaurant fell 4.6 percentage points to 10.7%.

Industry insiders pointed out that in recent years, there have been many pizza fields in the field of pizza, and the competition has become more intense. The advantages of Pizza Hut are not prominent. After addition, they are affected by the epidemic. Most of the domestic catering has stagnated. In this case, the brand has expanded and has limited results. At this point, the negative effects brought by the expansion strategy are increasingly prominent. "The increase in the number of stores has increasing the company's operation and management burden. For example, more income and profits are required to maintain development, and more employees need to make up for the position. As follows, there is the above food safety issues." People in the industry said.

In fact, from the 2021 annual report, it can be seen that Yum! China, which belongs to Pizza Hut, still has a lot of ambitions for its brand expansion. "We think that the number of our restaurant stores has the potential to develop to 20,000 or more in the future. At present, we are currently we. It is tracking more than 1,100 cities that have no KFC or Pizza Hakka restaurant. "

For Pizza Huts, who are already full of food safety, how can we avoid another problem under the expansion? Zhu Danpeng believes: "First of all, the state needs to strengthen the punishment and speed of food safety. In addition, for enterprises, in addition to improving the quality internal control system, food safety must be used to improve food safety as the largest weight. The assessment indicators are required and regulated the behavior of the manager, so as to reduce the hidden dangers of food safety. "

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