This document is authorized for use only by Prof. Gang HAO's MS6722 Advanced Case Analysis of SCM course at City University of Hong Kong, from January 2021 to July 2021.
Bronwyn Nichol prepared this case under the supervision of Professor Cheemin Bo-Linn for class discussion. This case is not intended to show effective or ineffective handling of decision or business processes. The authors might have disguised certain
information to protect confidentiality. Cases are written in the past tense, this is not meant to imply that all practices, organizations,
people, places or fact mentioned in the case no longer occur, exist or apply.
© 2018 by The Asia Case Research Centre, The University of Hong Kong. No part of this publication may be digitized, photocopied
or otherwise reproduced, posted or transmitted in any form or by any means without the permission of The University of Hong
Kong.
Ref. 18/604C
Last edited: 20 March 2018
CHEEMIN BO-LINN BRONWYN NICHOL
JARDINE’S PIZZA HUT HONG KONG: DISRUPTION OF AN INDUSTRY LEADER
We not only listen and respond to the voice of the customers, we constantly
challenge ourselves and our team to look for better and innovative ways of
doing things.
- Henry Yip, CEO of Jardine Restaurant Group1
The Pizza Hut Hong Kong (PHHK) success story continued to gain momentum under the
management of Jardine Restaurant Group (JRG). After Domino’s exited the Hong Kong market,
PHHK dominated the territory’s pizza delivery business and moved upmarket by launching
new restaurant formulas to overtake competitors like Spaghetti House.2 In 2015, independent
food delivery firms such as Food Panda and Deliveroo began to enter the Hong Kong
market. Early signs indicated these companies were offering customers new dining options.
As these unexpected disruptors started growing, Ravel Lai, regional IT and digital director at
JRG Hong Kong, wondered how to best protect Pizza Hut’s market share.
Ravel valued the leadership and mentorship of CEO Henry Yip; together they knew the only
way to overcome the next phase of competition was to develop a strong strategy that would
keep them firmly ahead. Their question was, what innovative approaches could they take to
tackle the disruptors, using technology as their strategic advantage, while delighting their
customers with at least the same standard that they were accustomed to and expected?
Hong Kong Environment and Culture
Growing Market
Hong Kong was independently governed under the principle of one country, two systems and
maintained a separate political and economic system apart from China after the end of British
1 “Pizza Hut HK & Jardine Restaurant Group Journey from 2003 to 2017,” slide 17, company presentation, Pizza
Hut Hong Kong, Hong Kong, February 2018. 2 Henry Yip and Ravel Lai, interviewed by Cheemin Bo-Linn and Jeroen van den Berg, 30 January 2018.
This document is authorized for use only by Prof. Gang HAO's MS6722 Advanced Case Analysis of SCM course at City University of Hong Kong, from January 2021 to July 2021.
18/604C Jardine’s Pizza Hut Hong Kong: Disruption of an Industry Leader
2
rule in 1997.3 Geographically, Hong Kong was well positioned in Asia on the doorstep of
mainland China and served as a gateway between the Chinese and Western markets. Hong
Kong thrived as an international business and finance hub. It recovered swiftly after the
international financial crash in 2009, and was a major service economy with stable GDP growth
above 2% from 2014 to 2017.4
Population