Younger consumers become a target for Pizza Hut

Younger consumers become a target for Pizza Hut

LOUISVILLE, KY. โ€” Offering convenient and portable products and competing in different eating occasions are two ways executives of Pizza Hut expect to attract more younger consumers.

โ€œItโ€™s not a secret that Pizza Hut historically has been more popular with older people than with younger people,โ€ said Aaron M. Powell, chief executive officer of Pizza Hut, at a Dec. 13 investors day for Yum! Brands, Inc., the parent company of Pizza Hut.

He gave the handheld Pizza Hut Melt launched in October as an example of appealing to younger consumers.

โ€œIt really explains not only the individual-use occasion but everything weโ€™re doing across our business to be younger and more every day,โ€ he said. โ€œItโ€™s intentionally designed for young people to like it. Value is very important โ€” $6.99. We are competing with everybody. Our people are not looking at other pizza competition.โ€

Pizza Hut no longer may focus mostly on special occasion pizzas, like those for families on the weekend.

โ€œWe still want that, but every day means for us to really compete in different occasions than before,โ€ Mr. Powell said.

Pizza Hut will execute three strategies in the United States in 2023.

โ€œOne: open kitchen, show the consumer their food, show the fresh product right in front of them, gives a great impression and a great consumer experience,โ€ Mr. Powell said. โ€œNo. 2, a lot of technology coming in. An example here, we have digital takeaway cabinets being tested in Mexico. Thatโ€™s just one example of us bringing in the right type of technology.โ€

No. 3 is lower capital costs, which may come through pizza delivery.

โ€œDelivery-focused assets are optimized for takeout delivery,โ€ he said. โ€œThey are better paybacks, lower capital costs. Youโ€™ll see that the US system of 6,500 restaurants are transforming, are already becoming more and more delivery-focused assets.โ€

Eighty percent of the Pizza Hut business is not dine-in, he said.