Pizza Hut's global expansion and cultural adaptation in Egypt and the United Kingdom

Pizza Hut in Egypt and the United Kingdom

The fast food industry represents one of the greatest achievements of the 20th century in the light of the impact it had on the population as well as for the reactions it triggered in the world of business, economics, and most importantly in terms of corporate affairs. From a business market point-of-view, it represented a real success especially taking into account the period in which the term became a well established concept, in the late 50s. The financial perspective is also important because it offers the actual dimension of the impact the concept of fast made and delivered food has had on the food industry. Finally, one of the most important issues the fast food industry brought new in the area was the cultural dimension of the business. More precisely, due to the fact that the globalization process determined a strong interconnectivity between nations, states, and cultures, the need to adapt to different regions of the world developed an entire array of corporate values. This in turn determined a reorientation of the strategies and business perspectives practiced up to that point. It gave the sense of global but at the same time of a cultural approach of the product. Therefore, restaurants came to identify their specific products with the parts of the world in which these were made. It represented a marketing as well as cultural approach of trade.

Pizza Hut is in this sense one of the most relevant examples. Its history and marketing strategy offers a significant example for the way in which corporations can evolve and become global, while maintaining the regional specificity of every one of its branches. The evolution of the Pizza Hut branch however is not necessarily unique. It represents a worthy example for the way in which all major fast food brands came to adapt their offer to the different regions in which they activate.

The literature in this sense can be considered to be rather vast in dealing with the early start of the fast food industry and its adaptation to the world of globalization. In this sense, Eric Schlosser argues in his book "Fast Food Nation the Dark Side of the All-American Meat" that indeed the world of fast food has greatly influenced the way in which the food industry came to perceive the actual process of food creation and distribution. In this sense, he argues that "over the last three decades, fast food has infiltrated every nook and cranny of American society. An industry that began with a handful of modest hot dog and hamburger stands in southern California has spread to every corner of the nation, selling a broad range of foods wherever paying customers may be found" (2000) Therefore it can be considered that the world of fast food is not necessarily strictly related to the idea of poof and its practical meaning, but it is also an idea related to the issue of the export of culture. Therefore, Schlosser's approach is on the one hand a pragmatic one, related precisely on the products of the fast food industry, and on the other hand on the idea it entrenches. In this sense he argues that "This is a book about fast food, the values it embodies, and the world it has made. Fast food has proven to be a revolutionary force in American life; I am interested in it both as a commodity and as a metaphor. What people eat (or don't eat) has always been determined by a complex interplay of social, economic, and technological forces." From the perspective he offered, the distinction between the practical and the cultural influences of the fast food industry have crossed national borders and each in its own way have promoted a new style of life and cultural communication.

The fast food industry brought the attention on yet another important element aside from the existence of a variety of cultures in the world and the need to communicate. Once the history of places such as Pizza Hut began to unfold, there was an obvious trend of shifting the perspective from an elitist perspective to a popular one. More precisely, the history of the Pizza Hut business as presented from the official sources points out the fact that the story of what would later become an entire chain of restaurants was in fact a reorientation of the interest from the industry designed for the rich people to that which would cater for the needs of the common people. It is important to consider the official source for the actual story because it offers the most reliable information for what came to be Pizza Hut, from its early beginnings to the fast food giant that is today. Thus, "we are rooted in family -- literally. Two brothers, mom, and $600 turned into the recipe for the world's largest pizza company in 1958, when a family friend with the idea of opening a pizza parlor approached the two college-age brothers in Kansas. The concept was relatively new at the time, and the brothers quickly saw the potential of this new enterprise" (Pizza Hut, 2008). Therefore, it can be said that the very beginning of the Pizza Hut concept gave a new sense of direction for the values and norms that would guide the company and in general the fast food business in the future.

The fast food industry has also represented a means of promoting political considerations. Although it may seem rather hard to believe, it is fair to say that often Pizza Hut is seen as a symbol of the West and of capitalism. A relevant document in this sense is Brodie Fenlon's article "China: Better Rich than Red. Leashing the Economic Dragon" which argues through a relevant example the great impact of capitalism. More precisely, he identifies Pizza Hut with the essence of capitalism and argues that the eventual success of the Hut is extremely relevant for the way in which such companies have acquired success on a communist market. At the same time it can be argues that in fact the multinational companies have been an important agent of change in terms of economic practices in former anti-capitalist regimes. The symbolic meaning of Pizza Hut restaurant and its association with the western civilization is visible in a negative way as well. Therefore, the 2006 incident in Karachi that involved the setting on fire of a Pizza Hut restaurant as a sign of protest against the western presence in the Middle East is relevant in this sense (FoxNews, 2006).

Finally, fast food chains are extremely relevant for pointing out the power of cultural communication and the need for the adaptability of a certain brand to a certain market. Ron Ruggless's point-of-view in this matter is relevant for pointing out the difficulties a multinational brand such as Pizza Hut had to face in the United Kingdom, an essential market potential which cannot be exploited to full potential precisely due to the different perspectives regarding the idea of corporate culture. He points out that fact that an important part in the limited success American brands have registered in recent years in the UK is due to the misconception that some U.S. brands don't look at the English mentality and way of life; they just expect that what works in the States will work in England as well" (2006). This perspective underlines the necessity of taking into account the specificities of the area when promoting a product or an entire brand.

These points taken into consideration it is important to underline that the role of the cultural identity of a region and in particular of the actual country in which the brand intends to develop is essential. Barry Mike and John W. Slocum Jr. offer a comprehensive account of the way in which Pizza Hut in particular and Yum Brands (Pizza Hut, Taco Bell, and KFC) understood the need for a reconsideration of the general strategy and the approaches they would have to implement in order to have a substantial input on the respective markets. The article presents the history of the Pizza Hut name, but unlike the official sources from Pizza Hut, the authors try to point out the relevance of the different partnerships with PepsiCo, for instance. Therefore, they point out the contribution such financial partnerships have brought in the development of the brand and that of the perception of national cultures. Most importantly however, the main points of the authors are related to the way in which Pizza Hut along with the two sister companies managed to restructure their own corporate culture that resulted in the end in the redefinition of values and beliefs. Thus, the products that would eventually be sold throughout the world would take into account the traditional values of the Pizza Hut system, but, at the same time, the focus would be on the consumers and on the special cultural, religious, and national needs.

Pizza Hut, as well as other fast food brands has tried to attract the Muslim market because it represents one of the most important numbers of consumers. This is largely due to the fact that, despite the constant sense of rejection of western influence among the older generation, the young generation of Muslim teenagers is more and more interested in the American lifestyle and every product that suggests a part of American culture. Dahlia Zayed, Regional Marketing Manager for TNS Middle East & Africa supports this point in her article "Fast food still sells in Egypt" arguing that the mirage of the American culture has made the society change. At the same time however, it is pointed out that the main part was played by the campaigns that tried to promote precisely the idea that companies have oriented their products according to the special needs of the Muslim religion which rejects pork meat or different other spices that otherwise make the basis of Pizza Hut products. This adaptability is important in a world of competition because it could mean the winning or losing of an important market. Craig S. Smith in his article "The Market McDonald's missed: The Muslim Burger" points out precisely this idea. He argues that the initiative to reconsider the Muslim market in terms of religious identity and not primarily as a source for profit has given birth to a new concept, the combination of the idea of classical American burger with the boef notion of beef meat. Thus, both needs were catered for. On the one hand, the tradition remains; on the other hand, it is in accordance with the moral and religious precepts of the local population.

Religion can be said therefore to play an important role in defining or redefining the strategies for certain markets. By comparison to the UK markets, Pizza Hut, from this point-of-view, did not have to reconsider its offer due to the fact that the common religion does not limit the offer in any way. At the same time however, there are other particularities the Pizza Hut brand had to face in order to reach success on the British markets. In this sense, in 1998 Pizza Hut received UK' Service Excellence Awards at the Consumer Services Category. This was the result of a thorough market analysis meant to improve the positioning of Pizza Hut in the hearts of the British consumers. In this sense, they did not necessarily considered changing the menu, but rather the main idea promoted by Pizza Hut UK. The article justifying the award is very useful for understanding the strategy adopted by the company. In this sense, realizing the higher standards of the British market in terms of the quality of the service and of the ambient, the Pizza Hut management decided to put more emphasis on the development of these areas that consumers found to be essential in order to become regular clients of a restaurant. Thus, their new concept promoted on the British market was summarized in the idea that "True, there's nothing very complicated about making pizza. But inspiring 11,000 staff throughout 380 UK restaurant locations to deliver a consistently high level of both product and service to one million customers a week is a feat requiring very high levels of skill and imagination." (UK: Service Excellence Awards, 1998).

The idea of the fast food industry is indeed a concept which entangles several meanings. It represents a business perspective, a political symbol, and a cultural linkage point. Pizza Hut, in this sense, is relevant for pointing out all these elements. At the same time, taking into account and comparing the marketing strategies the company implemented in a Muslim country such as Egypt and in a Christian one such as the United Kingdom, it can be said that the cultural and national element are one of the most important issues that any marketing strategy should take into account.

2. Research Proposal

The aim of the research paper will be to identify, in order to confirm or deny, the existence of a direct relationship between corporate strategies and territorial traditions. To reach a conclusion, several materials must be consulted and numerous intermediary questions must be answered.

2.1 Introduction

The fast food industry has become a constant of our daily lives and its significance is growing exponentially each year. Proof of this stand the large numbers of local stores opened and the global expansion of renowned fast food chains, such as McDonald's, Burger King and more recently Pizza Hut. Much has been said about the fast food industry and the products it commercializes, the comments coming from both disclaimers as well as supporters. However, the dispute seems far from being over.

When analyzing the fast food industry, increased attention must be given to the numerous features and forces that affect it. In this order of ideas, fast food consumption, and consequently the success of fast food companies, is given by a multitude of forces, including but not limited to, product offering and prices implemented, life style and personal choices of the population.

The international growth and increasing popularity of fast food products, combined with the changing behavior of consumers, lead to the preliminary conclusion that there is a direct connection between the strategies implemented by companies and the culture, traditions and habits of the region to where the company expands. But to be able to come to an informed conclusion, further research must be conducted.

2.3 Research Aim

The aim of the research is to gather as much information as possible in order to form an objective conclusion. The information retrieved must be actual and must come from reliable sources. At the end of the research, the writer should be able to clearly state whether there is a connection between the marketing strategies implemented by an organization activating in the fast food industry and the culture of the hosting country. Furthermore, if such a relationship exists, what are its determinants and main characteristics?

2.4 Research Objective

The objective is to be able to form an opinion and a final conclusion based on the information studied. The conclusion should confirm or deny the supposition that there exists, or at least should exist, a direct connection between corporate strategies and local culture.

2.5 Research Questions

The main question of the research relates to the existence of a dependent relationship between the strategies implemented and the cultural background of the region. However, in order to find the answer to this question, several others must be posed and answered. These include:

Has Pizza Hut implemented specific marketing strategies based on the particular features of each market where it activated?

Have these strategies been successful or have they failed in supporting the organization reach its overall goals?

Is Pizza Hut a strong representative in the fast food industry and can the findings related to it be generalized?

3. Methodology

The basic methodology used in the research paper would be the clear analysis of the most relevant available resources. These include:

All the literary resources summarized within the first chapter of the research proposal referring to the fast food industry and the cultural backgrounds within Egypt and the United Kingdom

Any marketing journals and scholarly publications debating corporate strategies, with specifications of the strategies implemented by the fast food industry and namely by Pizza Hut

Any literary resources which debate the existence of a relationships between culture and corporate strategies, if any such materials exists and are available

All available corporate resources which might reveal the international strategies implemented by Pizza Hut. These are most likely to be contained by the company's official website, under the Investors' heading. The SEC Fillings, the Audit Reports and the Annual Reports are the most eloquent ones

Reports and information available on media channels, such as newspapers and news reports

Finally, informal documents should be studied in order to get a tertiary opinion; some sources are likely to include negative comments about the organization and their actions, but studying the criticism of the company offers another perspective and aids in forming an objective stand point. Such resources could include internet forums, where satisfied or dissatisfied customers post their messages

The clear analysis of all information available must be done with a critical eye and the information coming from a secondary resource must be backed by information from a reliable source. In addition, all information must be double checked and quoted within the body of the research paper.

4. Future Results

The results of the research paper depend on numerous variables, such as the writer's ability to critically analyze the available information and form an opinion. Then, the results also depend on whether the conclusion reached is only applicable in a reduced amount of situations or it can be generalized as a rule of the fast food industry.

5. Conclusions

The fast food industry has grown at astonishing rates during the past recent years and has managed to influence the way we live our lives from numerous stand points. The main purpose of the research it to study numerous materials and identify if we as individuals and groups are able to change the way in which fast food chains operate, or are we merely pawns on their path to success. In other words, can we as culture impact the decisions corporations make?