After years of declining sales, Pizza Hut has taken the initiative to completely remodel itself. “So when you think of Pizza Hut, you think of a chain that has taken, essentially, a giant pizza, thrown a bunch of stuff on it, thrown it up in the air, it’s falling down, and they’re hoping it falls right side up.” According to marketing reporter Bruce Horovitz, that is Pizza Hut’s current situation.
New Pizza Hut Logo
Indeed that is the case. Trying to appeal to the younger consumers, Pizza Hut is now moving towards a restaurant where one can order and customize their pizza in numerous ways. With an additional eleven new recipes, ten new crusts, six new sauces, five new toppings, four new flavours, Pizza Hut is going all in. There’s more. With a new logo, new uniforms, and a new pizza box, it’s fun, it’s new, but most importantly (with all their chips in the pot), it needs to work.
Evaluating their business with the business model canvas, we can see that their revenue streams have been suffering sales declines for eight consecutive quarters. Pizza Hut has already found the biggest root to this issue, its value proposition. Now, it is attempting to change the outlook of its brand. However, is their method the best way to tackle this situation?
No. Instead, I agree with Darren Tristano (executive vice president at Technomic), and suggest a gradual approach with smaller changes over time. Such drastic changes, though targeting the younger consumers and making Pizza Hut seem more “hip” and “fun”, may also be overwhelming for customers, especially the chain’s loyal customers which Pizza Hut does not want to lose.
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Image source: http://www.indiaprwire.com/pressrelease/food/2011021878191.htm