Tuesday, December 17, 2019

Regulation and Pizza Hut - 636 Words

CASE STUDY – PIZZA HUT School cafeterias served nearly $500 million of pizza a year. Only frozen pizza was used, however, because freshly prepared pizza was effectively excluded by a U.S. Department of Agriculture (USDA) regulation that required inspection of any pizza with meat toppings that was sold at wholesale for resale. The same was true for other institutions such as hospitals and prisons. The 39 broader issue was the closure of the institutional market to freshly-prepared foods such as pizza and other fast foods. Pizza Hut’s overall business strategy was to become a â€Å"pizza distribution† company, and the institutional market was crucial to that strategy. According to Roger Rydell of Pizza Hut, schools were â€Å"‘a potentially†¦show more content†¦The second institutional arena was Congress, which could enact legislation to overturn regulations. Pizza Hut worked through Congress to include a provision in a 1991 agriculture bill that would allow fresh pizza to be purchased by school cafeterias without USDA inspection. The amendment directed the USDA to issue regulations by August 1992 allowing fresh pizza with meat toppings to be sold to private and public institutions.2 Pizza Hut had headquarters in Wichita, Kansas, and Representative Dan Glickman, whose district includes Wichita, commented that the USDA regulation was â€Å"a Byzantine, outdated and, quite honestly, an anti-competitive regulatory structure.†3 One question was whether this issue was resolved by interest group politics or by some public policy process based on a careful study of the costs and benefits. The opposition, for example, argued that an exemption posed a health hazard, whereas Pizza Hut argued that precooked toppings such as pepperoni had already undergone two inspections—one at the processing plant and one earlier at the slaughterhouse. These arguments likely had little effect on the decision other than to convince members of Congress that there was no health hazard in fresh pizza sold to institutions. This issue was ultimately resolved through interest group politics, with Pizza Hut and other fast-food chains backing the exemption and frozen pizzaShow MoreRelatedInternal Factors That Influence Workplace Relationships Essay1401 Words   |  6 Pagesany other factors you consider important for this assessment. 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The company was founded on April 1, 2016 and is headquartered in Louisville, Kentucky. Yum China became a publicly traded company on November 1, 2016. They have exclusive rights to operate and sub-license KFC, Pizza Hut, and Taco Bell with outright ownership of East Dawning and Little Sheep restaurants as well. Yum China is the leading restaurant company with over 7,300 restaurants in 1,100 cities spanning across every province and mainland in China. They have

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