Change starts with people and the basics

It was certainly the strategy of Pizza Hut UK managing director Jens Hofma, who said Pizza Hut’s people were at the core of his recovery programme for the business. Having resisted the temptation to cut labour costs for quick savings, he has instead invested heavily in training.

“Unless you have fantastic service and give your customers a great experience, you don’t have a business,” he argued in a frank review of Pizza Hut’s transformation, conceding that it had been overtaken lately by rivals who had raised the bar in the casual dining experience. “It’s fair to admit we’ve been caught asleep.”

Hofma now wants to refocus Pizza Hut’s customer experience, strengthening its identity and getting a grip on the feeling it gives diners. “It became clear that going to Pizza Hut had become a safe and predictable experience, but one that didn’t actually move you.”

He wants to shrug off the chain’s image as “fast food plus”, and concentrate on the things it does well—bringing adults and children together for good food in a fun, friendly environment. He has also split the company’s dining and delivery businesses, freeing them up to compete with one another.

“What we’re looking for is durability… a concept that stands the test of time,” he said. “We’re not all the way there yet but we’re a hell of a lot better than we were a few years ago.”

Joining Hofma on the conference platform to talk about reshaping a business was Punch Pub Co boss Mike Tye, who agreed that people lead change. “In this business the calibre of people drives everything.”

Simon Wilkinson, coo of the Kout Food Group, agreed: “We had a demotivated workforce and had to get a very positive, people-orientated culture.”

Leadership is vital, said Tye. “I don’t think you can drive change—only lead it. You have to have very strong and visible leadership.” Having narrowed down its brands to a portfolio of seven, Punch now has the bulk of its pubs behind the turnaround programme.

“Painting a picture [to staff] of how good things can be is really important. We’ve got huge engagement in what we’re doing.” He added that Punch is about to launch a new digital platform that will allow customers to speak to the company in real time—a scary prospect given the potential for criticism, but an important move.

Kout is meanwhile preparing a fresh push for its Burger King restaurants in the new year, with the emphasis on value. “McDonald’s has kicked our backsides for 12 months, but we’re ready to fight back,” Wilkinson vowed. It is also ready to expand its Maison Blanc brand, having knocked it into shape over the last year. “We’ve now got a business there we’re very confident about.”

Transforming a company has to be an ongoing journey rather than a quick win, added Hofma, arguing that it starts with tightening the operational nuts and bolts. “Fixing the basics is a thankless task because you don’t immediately see the benefits, but it’s a necessary one."