Investigating Declining Sales at Pizza Hut Ashmore Restaurant Report

This report investigates the declining sales at the Pizza Hut Ashmore restaurant. The study begins with an introduction to the problem, background information, and the research aims and objectives. A comprehensive literature review examines factors affecting sales, including internal and external influences, customer satisfaction, and marketing strategies. The research methodology outlines the approach, design, data collection, and analysis techniques used. The findings from primary and secondary data analysis are presented, followed by a discussion of the key issues. The report concludes with recommendations for Pizza Hut Ashmore to address the sales decline, incorporating strategies to improve customer satisfaction, pricing, product quality, and marketing efforts. The report's aim is to provide a detailed analysis of the problem and recommend effective strategies to stop the decline in sales. This report is designed to help the restaurant improve its performance and profitability.

Declining sales at Pizza Hut
Ashmore Restaurant

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Introduction......................................................................................................................1
1.2 Background of Study........................................................................................................1
1.3 Problem Space..................................................................................................................2
1.4 Aim and objectives...........................................................................................................2
1.5 Research Questions..........................................................................................................2
1.6 Structure of research paper...............................................................................................3
1.7 Significance of research...................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1 Introduction......................................................................................................................4
2.2 Factors that affects in sales...............................................................................................5
2.3 Ways to stop sales decline................................................................................................8
2.4 Conclusion......................................................................................................................11
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................12
3.1 Introduction....................................................................................................................12
3.2 Philosophy of research...................................................................................................12
3.3 Approach of research......................................................................................................12
3.4 Design of research..........................................................................................................12
3.5 Strategy of research........................................................................................................13
3.6 Data collection................................................................................................................13
3.7 Sampling.........................................................................................................................13
3.8 Data Analysis..................................................................................................................14
3.9 Ethical Consideration.....................................................................................................14
3.10 Research Limitations....................................................................................................14
CHAPTER 4 : DATA ANALYSIS AND FINDINGS..................................................................15
4.1 Introduction....................................................................................................................15
4.2 Data analysis of primary data.........................................................................................15
4.2 Analysis of secondary data.............................................................................................24
4.3 Discussion.......................................................................................................................24

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................25
5.1 Conclusion......................................................................................................................25
5.2 Recommendations..........................................................................................................26
REFERENCES..............................................................................................................................28
APPENDIX A................................................................................................................................30
APPENDIX B................................................................................................................................33

CHAPTER 1: INTRODUCTION
1.1 Introduction
In the era of globalisation, many new business organisations are emerging rapidly that
impacts on the behaviour of customers and influenced the sales of other existing organisation
(Mathe-Soulek and et.al., 2016). Other than competition, there are numerous factors that impact
on the sales and profits of the organisation such as poor management, organisational reputation,
lack of employee and customer satisfaction, poor quality of products and services, poor customer
services, etc. These factors impacts on the sales, profits and organisational productivity
negatively. It is the duty and responsibility of the management to consider these factors and
formulates effective strategies in order to cope up with the challenges. In accordance with this
context, the present industry research is conducted with support of Pizza Hut Ashmore
restaurant. Pizza Hut is an American restaurant chain with global franchises in over 16000
worldwide locations. It is one of the biggest chain of restaurant incorporating worldwide. The
research paper will focus on the frequent diminishing sales at Pizza Hut Ashmore Restaurant.
The research paper will be formulated in precise structure that will assist both the researcher and
end user to concentrates about the problem statements.
1.2 Background of Study
Until new management took over the franchise of Pizza Hut Ashmore, it was out of
operations from last one and a half year. It was established over 10 years ago and was subject to
several market conditions. Pizza Hut Ashmore is pizza chain based in Ashmore suburb of Gold
Coast region. Since its commencement of operations, Pizza Hut Ashmore faced severe decline in
sales before going out of business. The organisation is facing constant declination in the sales
and the reasons remain unidentified. In this context, the following research paper will focus on
the problem so that authentic and precious reasons can be obtained. In restaurant sectors, the
management can focus on improving the existing dish or producing a unique one. In this way,
the management will able to increase the sales and profitability of the organisation. By
examining the product an organisation offers and coming up the ways consumer can consume it,
the management will able to increase the attraction and satisfaction of the consumer. In this
method, the management or manager needs to innovate new ideas and implement them in the
business plan, so that maximum growth and development can be observed.
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1.3 Problem Space
The major problem Pizza Hut Ashmore fast food restaurant facing was constant
declination in sales and profits. There are numerous factors that are influencing the management
and impacts negatively on their productivity and profitability. Stiff competition, changes in taste
and preference of customers, weak management, etc. The aim of research is to comprehend the
factor that contributes directly or indirectly towards diminishing sales at Pizza Hut Ashmore
restaurant. Continuous diminishing sales can impact on long term prospectus of the organisation
and might results in dissolution of the restaurant (Smith and Sinha, 2000). Thus, the following
research will help in understanding the issues and problems effectively and efficiently.
1.4 Aim and objectives
Aim
“The overarching research aim is to analyse the factors behind sales decline in Pizza Hut
Ashmore project.”
Objectives
 To determine the factors for declining sales at Pizza Hut Ashmore restaurant.
 To stop the declining sales at Pizza Hut Ashmore.
1.5 Research Questions
Research questions are important aspects of research paper. Here researcher will signifies
what will be the questions of the research and what direction the research will go on. The
primary and secondary questions for research are listed below:
Primary Questions
1. How to stop the declining sales at Pizza Hut Ashmore restaurant?
2. What are the factors that contribute to declining sales at Pizza Hut Ashmore Restaurant?
Secondary Questions
1. How pricing and quality of the products in fast food chains can influence purchase decisions
of customers?
2. What factors does the pizza fast food restaurants needs to consider before adopting marketing
strategy?
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1.6 Structure of research paper
In this part, the researcher will describe the structure of research paper. The following research
paper will construct in the precise and effective manner. The structure of research paper is listed
below: Chapter 1 Introduction: In the first chapter, the researcher will provide brief information
about the focus and purpose of research. Chapter 2 Literature Review: In this chapter, the researcher will set the theoretical
framework that describes the objectives of the research efficiently by analysing reviews
of senior authors. Chapter 3 Research Methodology: In this chapter, the methods that will used in research
will be describe by the researcher. Chapter 4 Data Analysis and Findings: This is the fourth chapter in which the
researcher will analyse and interprets the collected data.
 Chapter 5 Conclusion and Recommendations: This is the last chapter, in which the
researcher will provide brief synopsis of the whole research paper.
1.7 Significance of research
In order to sustain in the competitive environment, the management of organisation must
developed and implement specific strategies that will help them in long term prospectus. In this
context, the following research will help the researcher to understand the factors that impacts on
the declining sales of Pizza Hut. The present study will also assist the management of the
organisation to consider the factors and make necessary measures in order to eradicate the issues
effectively and efficiently. Further, the present study will also aid in developing brief
understanding about the issues and factors that impact on the growth and development of the
organisation.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
Literature review is the second chapter in the present research paper. The aim of
addressing literature review is to set the theoretical framework in the project. This is considered
as the biggest chapter in the research paper, where the researcher will analyse the articles jotted
by senior researchers and authors. This will help in strengthening the research paper, the
researcher will be able to accomplish the set aim and objectives of the research.
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Illustration 1: Conceptual framework of literature review

2.2 Factors that affects in sales
According to Mathe-Soulek and et.al., (2016) in the restaurant segment, particularly in
quick-service restaurants (QSR), organizations focus on two main promotion formats to attract
customers: price-based promotions and new product promotions. In order to sustain in the
competitive environment, it is very important and crucial for the organisations incorporating in
the restaurant segments to increase their strategies to attracts more and more customers. There
are two factors identified by the senior researchers and scholars that affects the sales of the
organisation. These are universal factors which affects each and every business organisation.
These factors are internal factors and external factors. According to Oh and et.al., (2015) internal
factors such as labour problems, new product line, inventory changes, change in distribution,
sales plan production capacity changes, etc. impacts on the sales of the organisation. From the
analysis of organisations incorporating in Australia, it was identified that labour problems and
change in production is the lead cause of diminishing sales graph. The article proposed by
authors explained that there are two factors that impacts on the behaviour of customers. Which
are price factor and unique product factor.
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Illustration 2: Internal Factors affecting sales

Customers are the whole and soul of the organisational growth and development. If the
organisation fails to satisfy the customers, then they will remain unable to attain their desired
goals and objectives. Thus, in order to increase the satisfaction among the customers, the
management of restaurant organisation needs to focus on two main factors of promotions. Price
based promotions is the act of offering lower price either temporarily or permanent in order to
enhance the effectiveness in the sales of products and increasing the base of consumers.
According to Gregory and et.al., 2015 in marketing product based promotion is
advertising a product or brand in order to generate sales and creating brand loyalty. Product
based promotions are the promotion of unique products launched by the organisations and
advertising them on various forms of media in order to gain the customers attractions and
attentions. These two methods are appropriate and effective and it is the duty and responsibility
of the marketing manager of the company to focus on both the approaches and strategies in order
to maximise customer base and sustain in the competitive advantages. Restaurant sectors are
more vulnerable to competition. In order to increase their sales, the management needs to push
through their existing products and services and innovates new one in order to seek customers
attractions.
Downfall in customers are the biggest factor of declining sales of the organisation. As per
Malshe and Agarwal, (2015) it is very crucial for the management of the organisation to make
strategies and implement them in order to increase the satisfaction and motivation among the
consumers. This will help the organisation to prevent diminishing sales and profits. In this
context, Balvers, Gaski and McDonald, (2016) enunciates that customer satisfaction is very
important factor that provide benchmark for the future growth and success of the organisation.
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Jalilvand and et.al., (2017) enunciates that external factors are those factors that affects
the business corporations sales externally. These factors are changes in taste and preference of
consumers, political factors, economy factors, technological changes and legal environment.
These factors greatly impacts on the sales of the organisation. The management of the business
corporations increase their promotional activities and target their segmented customers so that
business profits can be enhances and desired goals and objectives can be accomplished.
Customers are the whole and soul of the organisational growth and development. If the
organisation fails to satisfy the customers, then they will remain unable to attain their desired
goals and objectives. Thus, in order to increase the satisfaction among the customers, the
management of restaurant organisation needs to focus on two main factors of promotions. Price
based promotions is the act of offering lower price either temporarily or permanent in order to
enhance the effectiveness in the sales of products and increasing the base of consumers.
According to Ažman and Gomišček, (2015) in the era of globalisation and competition, new
business organisations are emerging rapidly, that impacts on business of existing organisations
and increase the level of the competition in the environment. Other than competition, there are
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Illustration 3: External factors affecting sales

numerous factors that impact on the sales and profits of the organisation such as poor
management, organisational reputation, lack of employee and customer satisfaction, poor quality
of products and services, poor customer services, etc. These factors impacts on the sales, profits
and organisational productivity negatively. It is the duty and responsibility of the management to
consider these factors and formulates effective strategies in order to cope up with the challenges.
Mooi, Sarstedt and Mooi-Reci, (2018) said that by focusing on the needs and expectations of the
consumer, the management of the organisation will able to accomplish their desired aims and
objectives effectively and efficiently.
2.3 Ways to stop sales decline
Fornell, Morgeson III and Hult, (2016) describes various measures and ways in which the
particular brand or organisation is able to cease the declination of sales and profits. One such
way is development of brand value and reputation of the organisation by delivering excellent
quality of products and services. In today's era customer prefers those products and services
which are made of effective quality and satisfy them fully. By providing those services and
products, the management of the organisation is able to increase the productive and profitability
of the organisation. In this context, Tomczak, Reinecke. and Kuss, (2018) connotes that
management needs to focus on improving their managing techniques and hire competent and
skilled staff in the organisation. Further, the management needs to concentrates on developing
the brand value of the company so that consumer can be retained and attracted adequately. They
need to focus on the price and product promotion strategies.
The impact of price and extra product promotions on store preference’ studies the
importance of store preference from the customer within same brand. In other words, customers
choosing Ashmore branch over other Pizza Hut stores. It was found that increasing the visibility
of store into extending suburbs where rival stores operate tend to increase sales by 12%. Frennea
and Mittal, (2017) argued that focusing on the preference of consumers are essential, but while
doing that, management diverted towards that direction only and eschews the other areas and
sector of growth. In order to achieve maximum productivity, the management of the
organisation needs to concentrate on the overall areas so that maximum sales can be achieved. In
restaurant sectors, the management can focus on improving the existing dish or producing a
unique one. In this way, the management will able to increase the sales and profitability of the
organisation. Paul, Mittal and Srivastav, (2016) said that by examining the product an
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organisation offers and coming up the ways consumer can consume it, the management will able
to increase the attraction and satisfaction of the consumer. In this method, the management or
manager needs to innovate new ideas and implement them in the business plan, so that maximum
growth and development can be observed.
In this context Tripathi, (2014) argues that it is the duty and responsibility of the manager
of the business organisation to make efforts and generates new and innovative ideas that leads
the organisation towards growth and development. Rapp and Baker, (2017) contends that adding
new feature to the products and services a firm can earn potential benefits out of it. In order to do
that, rigorous market research needs to made by the marketing manager of the business firm. He
or she needs to analyse the recent trends, customer preferences and market needs and then make
necessary transformation in the existing product category. This step can be successful in ceasing
the downfall of sales and results in the growth and development of the organisation. Patil and
Divekar, (2014) argues that in order to reduce the downfall of profits, the management of
business firms needs to reduce the overall marketing expenses. From the analysis of business
firms accounting sheets, it was identified that manager spends most of the revenue on marketing
of the organisation. Marketing is good for business organisation but management needs to
consider the amount they are or has been spending on the marketing of products and services on
various forms of media.
In order to attract more customers towards the business corporations, the management
needs to formulate and implement specific strategies. These strategies must be formulated by
making specific market research. This will aid in development of precise strategies effectively
and efficiently. It was identified since the inception of digital marketing, social media platforms
has been used by the organisations in order to advertise the products and services. Katsogianni
and Vouzas, (2017) said that social media marketing enhanced the promotional activity of
business firm, they were able to enlarge their customer base and able to reduce the downfall in
sales. Srinivasan and Saravanan, (2015) enunciates that management needs to cease the
manufacturing of the product if sales continue to plummet. Management needs to focus on the
products that are not giving profits to the organisation or fails to satisfy the customers and reduce
their production. By using retrenchment strategy, the management can reduce the production of
non profitable goods and services. Further, the manager can identify those companies who
supplies identical products to the same target markets. By doing that, they can make
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