RRupdates

 

Friday
Oct192018

Another take on value

Friday
Oct192018

Recent wage gains not enough for past menu price increases

Thursday
Sep062018

Discounts Everywhere in August

 

Friday
Jul202018

Pizza Hut Strategy

Key Points from Pizza Hut's June 2018 Investor Conference

  • Plans to stay with $5.99 pairs & $7.99 large 3-top online (best value deal on TV for delivery) & value scores are improving.
  • Now focused on innovation because value message has been seeded. Food wins every time & Pizza Hut has eliminated the gaps that have developed over last several years
  • 55% - 58% of sales thru digital channel (mobile drives 75% of digital & new app coming).
  • Hot, fast & reliable positioning benefits from better tools, algorithms & hot sleeves driving 3 minute delivery time improvement. 
  • The chain rolled out 145,000 new pouches made with 3M Thinsulate Insulation thermal technology designed to deliver pizza 15 degrees hotter.
  • Pizza Hut also hired 14,000 delivery drivers in 2017 and there are now more than 24,000 new car toppers on the road.
  • Big bet on football with NCAA & NFL sponsorships that provide marketing on Thursday & Friday nights, Saturday days for college and Sunday & Monday nights.
  • Loyalty rolled-out last summer & corporate is very pleased with results. Points based system works well with activating NFL marketing.
  • 2,000 units have switched hands over the LTM period with Wall Street, family offices & private equity bringing 1st class operators.
  •  50% of the system has older versions of dine-in iterations. Delcos represent a much better store format with $300k to $350k construction costs & 3 year payback.
  • 100 fast casual Delcos will be developed by 4Q18, providing a new, relevant format for dine-in with a 4-5 year payback with 7 year leases.
  • 60% of pizza market consists of smaller players & pizza is "90% half local".
Monday
Jul162018

MCD Launches Price War on its App

  • McDonald’s is offering rock bottom pricing on its app through the end of December. Each day, customers can choose from any $1 offer.
  • What does this mean for the competition??