Since 2017, Pizza Hut has been failing all across the world
But India saved it from extinction
The funny part? While it has 18000 outlets across the world, India saved it with just 500
Here's how India became the most important slice of their pie:
But India saved it from extinction
The funny part? While it has 18000 outlets across the world, India saved it with just 500
Here's how India became the most important slice of their pie:
Pizza Hut was founded in 1958 by two broke brothers from Kansas and is one of the largest pizza chains in the world.
Until 2017, Pizza Hut was the king of Pizza worldwide.
Since then it has seen a downturn in profits due to the sudden emergence of global and local competitors.
Until 2017, Pizza Hut was the king of Pizza worldwide.
Since then it has seen a downturn in profits due to the sudden emergence of global and local competitors.
If you see Pizza Hut’s fame was because of being this “hut” or a place to go and eat Pizza — it had a pretty strong attraction.
But when people started getting better options for dining out, nobody really chose Pizza Hut.
It struggled to try to catch up with its competitors.
But when people started getting better options for dining out, nobody really chose Pizza Hut.
It struggled to try to catch up with its competitors.
Pizza Hut had to shut several stores and keep switching business models, one after another.
Where did they go wrong?
It changed from casual dining to a fast food quick service dining company, and in the process, it lost its touch (it used to feel more upscale than fast food).
Where did they go wrong?
It changed from casual dining to a fast food quick service dining company, and in the process, it lost its touch (it used to feel more upscale than fast food).
Pizza Hut follows a price skimming strategy, where it prices its new products higher than its competitors.
As competitors enter the market, it gradually decreases its price to meet the market average.
But it's not a great strategy in a crowded market such as Pizza Industry.
As competitors enter the market, it gradually decreases its price to meet the market average.
But it's not a great strategy in a crowded market such as Pizza Industry.
Moreover, Pizza Hut has struggled over the years to find a brand identity. It never had a popular catchphrase or slogan, which hindered its brand recognition.
And they were stubborn when it came to warming up to new innovation, even after the decline started & other brands rose.
And they were stubborn when it came to warming up to new innovation, even after the decline started & other brands rose.
Its competitors also have deeper discounts, deals, and loyalty programs and it has failed to roll out similar promotions on the same scale.
Moreover, others perfected mobile ordering and partnered with food delivery apps to keep business booming.
It's aware of all these issues.
Moreover, others perfected mobile ordering and partnered with food delivery apps to keep business booming.
It's aware of all these issues.
But when it turned to delivery, Domino’s had already started creating a moat there.
Basically, Pizza Hut was choked. Its high prices and failure to keep up with modern times meant lower sales and that it's eventually headed toward extinction.
Domino's took over its rein in '17.
Basically, Pizza Hut was choked. Its high prices and failure to keep up with modern times meant lower sales and that it's eventually headed toward extinction.
Domino's took over its rein in '17.
After that, it suffered badly, and the pandemic made it worse.
But in India things are different. When they started out in 1996, they quickly became famous due to the lack of Pizza joints in India.
And that recall is still there, but most pizza lovers in India are divided.
But in India things are different. When they started out in 1996, they quickly became famous due to the lack of Pizza joints in India.
And that recall is still there, but most pizza lovers in India are divided.
Both Pizza Hut and Domino's have a loyal customer base.
We don’t have many specialized Italian cafes in India, so when you feel like going to eat a Pizza, you automatically think of Pizza Hut since Domino’s doesn’t focus too much on dine-ins.
We don’t have many specialized Italian cafes in India, so when you feel like going to eat a Pizza, you automatically think of Pizza Hut since Domino’s doesn’t focus too much on dine-ins.
Domino's has a better home delivery service making it more accessible for those who love to eat at home.
India is a price-sensitive market and that's where Domino's wins because of its prices.
But we have to understand that many Indians value quality & service more than price.
India is a price-sensitive market and that's where Domino's wins because of its prices.
But we have to understand that many Indians value quality & service more than price.
And that's what they love about Pizza Hut — the food quality and ambiance it offers.
Domino's has a self-service system in its outlets, but in most of its outlets, Pizza Hut serves the customer.
In essence, Pizza Hut is quite different from Domino’s.
Domino's has a self-service system in its outlets, but in most of its outlets, Pizza Hut serves the customer.
In essence, Pizza Hut is quite different from Domino’s.
In the dine-in segment, it's not competing with Domino’s but rather with other good dine-in restaurants which might be expensive.
Since India’s a price-sensitive market, it was able to woo its customers by giving a relatively reasonable offering with a quality dining experience.
Since India’s a price-sensitive market, it was able to woo its customers by giving a relatively reasonable offering with a quality dining experience.
With Pizza Hut, people got the best of both worlds.
It might have failed to adopt new innovations but Pizza Hut is known for its development of new food products from time to time.
Moreover, Pizza allows for innovations based on local tastes and preferences by way of toppings.
It might have failed to adopt new innovations but Pizza Hut is known for its development of new food products from time to time.
Moreover, Pizza allows for innovations based on local tastes and preferences by way of toppings.
To attract the target market in India, the company adopted a GLOCALISATION strategy and introduced an Indianized menu.
Pizza Hut also offered customizations in toppings, sauces, and ingredients.
Even after all of this, Pizza Hut is a distant second to Domino's in India.
Pizza Hut also offered customizations in toppings, sauces, and ingredients.
Even after all of this, Pizza Hut is a distant second to Domino's in India.
To keep surviving and thriving in the dine-in market, Pizza Hut will need to keep evolving and build a more aspirational and upper crest value of its brand in India.
As our disposable incomes grow, more and more Indians will prefer proper dining options...
As our disposable incomes grow, more and more Indians will prefer proper dining options...
like Chili's and Cafe Delhi Heights, and that will affect Pizza Hut’s business.
Along with that, they're working on the delivery. Pizza Hut's delivery is good, but still, Domino's literally owns the market.
Last year they turned 90% of its stores into delivery only in India.
Along with that, they're working on the delivery. Pizza Hut's delivery is good, but still, Domino's literally owns the market.
Last year they turned 90% of its stores into delivery only in India.
So, what's happening globally is definitely starting to have an effect here too. Pizza Hut needs to be careful about that.
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