I am not an investor in Pizza Hut (YUM:NYSE) but, if I were i’d be a bit skeptical about this one. Domino’s (DPZ:NYSE) has risen to prominence through their delivery and the supposed shift from going out to eat to watching Netflix (NFLX:NASDAQ) ordering Domino’s. I never did agree with that thesis. I think it was just people trying to explain the past in the absence of actual facts.
Pizza Hut is going to deliver pizzas that are fifteen degrees hotter. Who cares? I’ve never had a cold or lukewarm pizza delivered. What they will do now is take the pies from “hot enough to eat to too hot, lets wait a little while.”
Hiring the herd of drivers is a better idea. Maybe more drivers will allow the merchandise to be delivered at the appropriate temperature anyway.
In the article below, a brand spokesperson for the company declares that we are entering “pizza season”. Ummm, what season is NOT pizza eating season? When it is ninety degrees out at the beach, you eat pizza. When the leaves are falling, you eat pizza. When you’re slipping and sliding on ice and snow, you eat pizza. Whenever it’s available, you eat pizza!!
Maybe I’m taking a little corporate rah rah speak too seriously but, come on! This is all you have to offer? Ok, it’s 8:30 AM, let me go grab a slice and ponder this one a little further. It’s pizza eating time!!!! I hope its not too hot to eat, though. That would disappoint me.
DISCLOSURE: THIS ARTICLE IS WRITTEN FOR INFORMATIONAL PURPOSES AND SHOULD NOT BE RELIED UPON AS INVESTMENT ADVICE. ALL INVESTING INVOLVES RISK AND YOU SHOULD PERFORM YOUR OWN DUE DILIGENCE. CONSULT A FINANCIAL ADVISOR. THIS ARTICLE CONTAINS INFORMATION FROM SOURCES BELIEVED TO BE RELIABLE. I DO NOT PERSONALLY OWN ANY OF THE STOCKS MENTIONED HERE AND HAVE NO PLANS TO INITIATE POSITIONS.
Pizza Hut promises to deliver its pies 15 degrees hotter
- Starting this week, Pizza Hut’s drivers will begin using redesigned pouches, with insulation.
- Pizza Hut will also use new boxes that feature thicker sides to lock in heat.
- The restaurant chain is also in the midst of hiring 14,000 new drivers.
CNBC.com
Pizza Hut doesn’t want you to complain about lukewarm pizza.
The chain is rolling out a redesigned delivery system that promises to keep pies 15 degrees hotter as they travel from stores to customers’ homes.
It’s the latest move by the Yum Brands-owned pizza company, which has struggled in a competitive market to regain its lead.
Earlier this year, Pizza Hut was dethroned as the “best pizza chain brand,” ending a four-year winning streak, by rival Papa John’s. Meantime, Yum Brands has laid out a $130 million investment plan for Pizza Hut, planning to upgrade its equipment, improve restaurant technology and boost Pizza Hut’s advertising through 2018.
“We have cracked the code on how to deliver pizzas hotter,” said Zipporah Allen, vice president of brand marketing and consumer insights at Pizza Hut. “This is consistent with where we see our growth, with digital and delivery.”
The new pizza boxes feature thicker sides that will lock in heat and keep a pie in place through delivery. Each box includes a patented “crisp sheet insert” to keep the pizza elevated and to maintain an “oven-hot” temperature.
The sheets, made of cardboard, feature ridges on the bottom, so when placed underneath a pizza they allow warm air to linger longer in those pockets and permeate the pie. The restaurant chain said it has spent more than two years looking at ways to perfect the design.
Starting this week, Pizza Hut’s drivers will also begin using redesigned pouches, with insulation, to carry pies to homes. The pouches feature some of the same materials used in astronauts’ space blankets and in ski jackets.
“We are enabling [our drivers] with the tools to deliver a better experience to our customers,” Allen said.
Pizza Hut is also in the midst of bolstering its fleet of drivers. It’s hired nearly half of the 14,000 drivers that it expects to add by the end of the year.
Pizza Hut hopes that the additional labor and the new technology will better serve its customers and lead to more orders. Ramping up its digital presence could also help Pizza Hut better compete with Domino’s.
“This is pizza-eating season. … The weather is starting to get colder out there,” Allen said. “With the oven-hot delivery system we’re focused on making sure we can deliver.”
