Pizza Hut is hoping a brand-new $5 pizza will bring back customers who have drifted toward rival chains offering better deals and fresh menu ideas.<\/p>\n
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The company is introducing \u201cCrafted Flatzz,\u201d a thinner, crispier version of its well-known Personal Pan Pizza, priced at $5 and designed as a single-serving option. Available for a limited time, the offering is aimed squarely at the budget-conscious lunch crowd, a segment that Pizza Hut admits it has not served as effectively as it could.<\/p>\n
The launch comes as Pizza Hut works to reverse a troubling streak of seven consecutive quarters of sales declines in the United States. Executives have been candid about the challenge: the pizza itself is not the problem, but the chain\u2019s value message has struggled to connect with customers who are increasingly focused on affordability and convenience. Competitors such as Domino\u2019s and Papa Johns have found ways to win those customers back with targeted promotions, new products, and revamped loyalty programs.<\/p>\n
In the most recent quarter, Pizza Hut reported a 5% drop in U.S. sales, trailing behind its major competitors. By contrast, Domino\u2019s reported strong momentum, fueled in part by its new Parmesan Stuffed Crust Pizza and a refreshed rewards system. The chain also struck a partnership with DoorDash, which boosted delivery options and helped generate same-store U.S. growth of 3.4%. Papa Johns, which has faced its own rough patches, saw sales increase 1% during the same period. That rebound was supported by its $6.99 \u201cPapa Pairings\u201d menu, which encouraged customers to order more pizzas, and a strategy to move away from lower-performing items like sandwiches and sides.<\/p>\n
Industry analysts point to a key issue for Pizza Hut: the lack of a compelling value message. \u201cPizza Hut has trailed its peers because its value message hasn\u2019t stood out like Domino\u2019s and Papa John\u2019s,\u201d said R.J. Hottovy, head of analytical research for Placer.ai. Yum! Brands CEO David Gibbs, whose company owns Pizza Hut, was similarly blunt during an August earnings call, describing the chain\u2019s U.S. marketing as \u201can insufficient value message amid a competitive value landscape.\u201d<\/p>\n
Pizza Hut executives hope Crafted Flatzz can help fix that. CEO Aaron Powell noted that more than two-thirds of Pizza Hut\u2019s pizzas are sold after 4 p.m., leaving lunch hours as an area with significant growth potential. By offering a crisp, affordable option at just $5 before 5 p.m., the chain is attempting to draw in customers who want pizza but not an entire pie. Powell emphasized that the goal is to make pizza appealing at any hour of the day, with new formats that fit different eating occasions.<\/p>\n
\u201cPeople love pizza all day. It\u2019s up to us to bring the new ways of allowing people to have formats of pizza they can eat at any hour,\u201d Powell told CNN. \u201cThis is a great example of something that is an outstanding value.\u201d<\/p>\n
The Crafted Flatzz lineup includes five varieties: chicken bacon ranch, three cheese, Nashville hot chicken, pepperoni, and \u201cThe Ultimate,\u201d which comes loaded with toppings such as Italian sausage, caramelized onions, cheese, and pepperoni. The pizzas will be priced at $5 before 5 p.m. local time, with a slight increase after that depending on location.<\/p>\n
For Pizza Hut, the timing of the launch is important. Midday traffic at restaurants has not recovered to pre-pandemic levels, according to analysts, and this is where the chain sees its biggest opportunity. By adding a fresh, value-driven product designed for solo diners, Pizza Hut hopes to convince customers to give the chain another try.<\/p>\n
Promotional campaigns like $2 Personal Pan Pizzas on Tuesdays and Wing Wednesdays are also part of the strategy, but executives believe Crafted Flatzz represents a more direct way to compete with Domino\u2019s and Papa Johns in terms of value. Industry experts say it could help improve perceptions of the brand at a time when customers are more selective about how and where they spend their money.<\/p>\n
\u201cWhile competition is unlikely to wane, the launch of the $5 \u2018Flatzz\u2019 pizza could help improve Pizza Hut\u2019s value perception and bring more customers into its stores during lunch hours,\u201d Hottovy said.<\/p>\n
Pizza Hut executives acknowledge that the broader economic climate is weighing on customer spending. Powell declined to go into detail about the company\u2019s challenges but admitted that consumers are being \u201cvery choosy with where they spend their money because there are challenges with confidence.\u201d For Pizza Hut, delivering on value and finding ways to appeal to customers throughout the day may be the only way to regain ground in an increasingly competitive pizza market.<\/p>\n","protected":false},"excerpt":{"rendered":"
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