It’s getting tougher to compete for delivery customers, so Pizza Hut is targeting the traditional fast-food space.
The Plano, Texas-based pizza chain on Tuesday said it is piloting a new design that looks more like a KFC than it does a Pizza Hut.
The location, near the company’s corporate headquarters, will feature a drive-thru along with a “Hut ‘N Go” menu that includes a selection of “ready now” items that can be quickly ordered and picked up at the window.
The prototype also features self-serve kiosks where customers can order those ready-made items, and pickup cabinets for mobile orders.
“This new restaurant showcases Pizza Hut’s legacy of innovation and unique ability to meet changing guest needs in ways that are distinctive to our brand,” Aaron Powell, CEO of Pizza Hut, said in a statement. “Beyond just serving delicious pizza, which we do very well, it’s equally as critical that our guests enjoy a seamless experience with us that feels personalized to their tastes and needs.”
The design features drive-thru windows.
The design is a demonstration of the state of the pizza business. Chains like Pizza Hut and rivals such as Papa Johns built their business on their ability to deliver food directly to customers’ homes. But they’ve lost that competitive advantage in recent years as third-party delivery services emerged, giving customers many more options for delivered meals.
That’s reflected in some weak results on the part of some of the pizza players. Pizza Hut’s U.S. same-store sales have declined each of the past four quarters and have been flat or down in seven of the past 11 quarters. Its contemporaries have not fared much better over that period.
Many pizza chains have joined the aggregators to get a piece of that business. But they are increasingly focused on customers that come in to get their pizzas. Drive-thru windows, nicer interiors, pickup shelves and screens are increasingly common inside pizza restaurants.
Customers can order ready-made pizzas on a kiosk.
Pizza Hut’s prototype takes all that a step further with the ready-made menu. The location doesn’t appear much different than a location of one of its fast-food sister chains such as KFC or Taco Bell.
The location taps into the chain’s experience in international markets. Pizza Hut’s concept is in operation in nearly 2,000 locations in 80 markets around the world. The company said that the design drives more transactions and in-restaurant traffic.
The prototype replaces an older format that stood at the location for 25 years.
“We’ve seen how this restaurant design brings the brand to life with a distinctive, modern exterior, an effortless blend of physical and digital touchpoints and increased human interaction around the joy of pizza,” Joseph Call, global chief development officer for Pizza Hut, said in a statement. “In addition, the open kitchen approach lets our guests see the magic of our team members in motion.”
The interior features pickup shelves.
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