Pizza Hut has a new business model that’s targeting younger customers. The pizza franchise intends to transform its reputation as a special-occasion restaurant that attracts older consumers in the coming year.
Older Pizza Hut customers fondly recall the pizza franchise as the restaurant they frequented as youngsters after soccer games and where they used their Book It coupons for the last 64 years.
Offering value to younger customers to increase revenue
The company is aware that in order to sustain long-term revenue growth, it must draw in a younger demographic of consumers. Pizza Hut management believes that by competing in different eating situations and providing products that are portable and convenient, they will be able to draw in more younger customers.
It is, therefore, offering younger customers menu options like the Pizza Hut Melt to attract those seeking value. Priced at $6.99, the portable foods resemble a hybrid of a quesadilla and a stromboli. The new Pizza Hut Melt is a part of a strategy to make the historic pizza restaurant more accessible to younger customers. It was launched in October 2022.
Additionally, the Pizza Hut Melt appeals to a segment that the company hasn’t had since the introduction of the individual diner. Powell estimated that 45% of all fast-food meals are consumed by individual consumers. The Melts are made with those customers in mind.
The company is also a sponsor of a college basketball feed, which has unique product connections and logo integrations.
Pizza Hut’s approach to increasing revenue
CEO Aaron M. Powell claims that the firm will increase revenues in 2023 through a three-pronged approach.
- An open kitchen where customers can see their meals and the fresh product right in front of them. This creates an excellent first impression and enhances the customer experience.
- There is a lot of new technology. The pizza franchise is currently testing computerized takeout cabinets in Mexico as an example.
- Reduced capital costs, which the pizza delivery might help achieve. Assets geared towards delivery are being optimized for the delivery of takeaway. Takeaways have better paybacks and are less capital-intensive. 6,500 restaurants in the US are changing significantly and are already focusing more on delivery.
Boosting digital orders to target younger customers
Meanwhile, according to the Ad Exchanger website, Pizza Hut intends to increase its marketing budget for its loyalty program in order to increase online orders. Additionally, the business will put a lot of effort into CTV, an internet-connected device, or linked TV advertising.
It’s no secret that Pizza Hut has traditionally been more well-liked by older people than by younger ones, and there are challenges with that. Powell wants the company to be as well known among his children as it is among his generation.