CORPORATE HISTORY : Crust Of Joy

For almost six decades now, the Red Roof logo has stood for the ultimate pizza dream. A subsidiary of Yum! Brands, Pizza Hut is the world’s largest pizza company with over 5,000 store locations and 11,000 branches spread over 94 countries. Read on for the full, delicious story of a brand that redefined pizza for the whole world

Believe this or faint: they delivered Pizza to a space astronaut and he loved it! The White House orders from them every now and then, and in every corner of the globe, whether or not they speak English, the logo is instantly recognisable. With over 300 million pounds of cheese for their pizzas, they’ve surpassed every other competitor in the game.

And to think, the humble pizza is just about the staple of every Italian home. But as they say, entrepreneurship knows few boundaries; it took a pair of American brothers to foresee its tremendous potential—and play it to the hilt. Simply put, they took the Italian out of Pizza—and put their signature stamp to it. As things stand today, Pizza Hut is much, much more than a name. It is one of the best-loved symbols of the Great American lifestyle. ‘Gather around the good stuff’ or ‘Now you’re eating’ are slogans that tell of the ultimate yuppie aspiration: eating cool, delicious, convenient food surrounded by those you love.

Add to that a few tons of cheese, chicken, bacon, sausage—and a variety of utterly delicious toppings, and you have the perfect comfort food for every season and reason!

With over 6,000 outlets in just the US, to say nothing of 5,000 store locations and 11,000 branches spread over 94 countries, the story continues to add new chapters every day. About 15 percent of the restaurants are company-operated, while the rest are franchised.

How $600 funded a billion-dollar tree

The fifties were a happy and hopeful new time in Western History. The World War was over, the US economy was limping back to normal, and it was now a decade to look forward to pursuits other than survival.

Obviously, tasty—yet affordable food had to be part of the script. And that’s where the brothers Dan and Frank Carney, both students at Wichita State University, came in. Sure, pizza was something that the Italians ate—but it was sufficiently loved by the American palate to have a solid chance if it were brought to the US. Just a few tweaks here and there, and it could be reinvented as the ultimate convenient food for university kids like themselves, and other regular, office-going folk.

So in 1958, they borrowed $600 from their mom, and got going. They rented a small space and purchased second-hand equipment to make pizzas and set up shop. On the opening night, they actually gave pizza away to encourage community interest. With only 25 seats and a room of nine line letters on the sign—the building looked like a hut, so the name ‘Pizza Hut’ seemed logical. Besides, a restaurant dedicated completely to pizza was an utter novelty, and people were curious enough to gamely try it out.

And, the rest, as they say, is probably the one of the most spellbinding sagas in gastronomical history. A subsidiary of Yum! Brands Inc, it has grown from humble beginnings to become the world’s largest restaurant company.

The first Pizza Hut restaurant east of the Mississippi was opened in Athens, Ohio in 1966 by Lawrence Berberick and Gary Meyers.

In 1973, Pizza Hut landed on English shores— and found a whopping audience in the Queen’s own land. Over-the top, cheesy, colourful and lots of fun—it was a stark contrast to staid English cuisine and was an instant hit.

As things stand today, Pizza Hut’s global presence includes countries like Canada and Mexico in North America, Pakistan, India, UK, Australia, Sweden, Costa Rica, Honduras, El Salvador, Guatemala, Colombia, Venezuela, Peru, Ecuador and Nicaragua. Other Asian countries include Qatar, Vietnam, the Philippines, Thailand, Malaysia, Indonesia, China, Hong Kong, South Korea and Macao. Pizza Hut was one of the first American franchises to open in Iraq. One helluva story for a pizza? But then…

Other Asian countries include Qatar, Vietnam, the Philippines, Thailand, Malaysia, Indonesia, China, Hong Kong, South Korea and Macao. Pizza Hut was one of the first American franchises to open in Iraq

Pizza is more than pizza! It’s an experience

The crowning reason, as per experts, for its brand longevity is its ability to transfer itself to any location in the world. In each specific culture, the brand adapts itself. To cater to different audiences, cultures and geographical locations, Pizza Hut has several different restaurant formats: family-style dine-ins, takeaway counters, storefront delivery and mixed bag locations that have carry-out, delivery, and dine-in options. Quite often, Pizza Hut is smartly placed inside food courts and conglomerated restaurant locations, surrounded by small time food chains that honestly can’t hold a candle to Pizza Hut’s repertoire—or its clear-cut, distinct positioning as transparent and reliable.

The menu keeps pace with the local palate too. Some full-size Pizza Hut locations have a lunch buffet, with ‘all-you-can-eat’ pizza, salad, bread sticks and pasta bar. Whatever they do, they make sure they are heard and seen—loud and clear at that! No shrinking violet this brand!!

It goes with saying that innovative methods— and some sleek, spiffy advertising reflective of current aspirations and sociopolitical trends—have worked for the pizza giant.

Playing town crier

Pizza Hut’s very first television ad was produced in 1965 with the theme ‘Putt Putt to the Pizza Hut’. The ad, shows a man ordering takeaway and driving his car to Pizza Hut, where he is chased by a crowd. He picks up his pizza and goes back to his house, where all of his pizza is eaten by the townspeople before he can take a bite. Frustrated, he calls Pizza Hut again...

The ad showcased the irresistibility of Pizza Hut—and went on to win several awards, apart from raking in the moolah.

Until early 2007, Pizza Hut’s war cry was “Gather ’round the good stuff’, and was ‘Now You’re Eating!’ from 2008 to 2009. From 2009 to 2012, the advertising slogan was ‘Your Favorites. Your Pizza Hut’. The advertising slogan is currently ‘Make it great,’ an updated version of the original ‘Makin’ it great’ slogan that was used from 1987 to 1993. Pizza Hut does not have an official international mascot—and continues to be topical, varied—and appetisingly glocal (a winning combo of both global and local attributes.) Interestingly, the 1994 ad had the current US Presidential runner-cum-billionaire Donald Trump and ex-wife Ivana featured in a commercial. The commercial showed Ivana asking for the last slice, to which Donald retorted ‘Actually dear, you’re only entitled to half’, a sly reference to the couple’s recent divorce. In 1995, an ad commercial with entertainer-radio host Rush Limbaugh has him bragging that ‘nobody is more right than me,’ yet for the first time he will do something wrong— which is to participate in Pizza Hut’s then ‘eating pizza crust first’ campaign regarding their stuffed crust pizzas. 2007 saw Pizza Hut moving into several more interactive ways of marketing to the consumer. Utilising mobile phone SMS technology and their MyHut ordering site, they aired several television commercials containing hidden words that viewers could type into their phones to receive coupons.

FUN FACTS ABOUT PIZZA HUT

  • Pizza Hut uses up over 3 percent of the total cheese production of the US—which means a whopping 300 million pounds annually. One of its fastest moving recipes ‘The Insider’ uses as much as one pound of cheese per pizza
  • This amounts about 1,70,000 cows to make so much cheese
  • In 2001, Pizza Hut supplied pizza to the International Space Station. It was vacuum-sealed and about six inches (15 cm) in diameter to fit in the Station’s oven. It was successfully eaten by astronaut Yuri Usachov in orbit
  • In 2000, Pizza Hut was the first company to have its logo attached to the fuselage of the world’s largest Proton rocket

On April 1, 2008, Pizza Hut in America sent emails to customers advertising that they now offer pasta items on their menu. The email stated “We changed our name to Pasta Hut!” Of course, this was just a clever tactic in conjunction with April Fools’ Day, extending through the entire month, with even the company’s Dallas headquarters changing its exterior logo to ‘Pasta Hut!!!’ Funny, colorful, wicked and making full use of the latest technology, the advertising has gone a long way in communicating the malleable and adaptable mould of the brand. Which brings us, naturally, to figuring out...

WHY PIZZA HUT ROCKS

  • It is an adaptable, market-savvy branch that keeps specific cultural nuances in time
  • It makes use of the latest technology for its marketing communication
  • Its rich brand legacy and unforgettable stylish, yet warm, family decor
  • It is a win-win combo of glocal values (global presence wed to local mores)
The India Story

Niren Chaudhary, director, Yum Restaurants Inc has said recently that the parent company is very positive and bullish on India. “India can be the next China in terms of the number of outlets that we have in China. In China, we have 10 times the number of outlets that we have in India. India’s contribution to our global business today is minuscule, but it is growing very fast,” he said. “The Indian consumer had definite preferences; he likes spicy food and we need to keep that in mind.”

The last few years have witnessed a slide in turnover due to rising food inflation and decreased consumer spending on pizzas and burgers. There are 431 Pizza Hut stores in India, and the revenues have not been up to scratch—but to be fair, fast food as a segment, including other iconic brands like Domino’s, Dunkin’ Donuts, McDonald’s and KFC have been affected too. As per March 31, 2015 reports, Yum! Brands, which operates Pizza Hut, KFC and Taco Bell outlets in India, has reported 11 percent year-on-year decline in its same store sales growth for the quarter. To add to the macro picture: the eating-out market in the country is estimated to be $94 billion, or about Rs.5,85,000 crore, but only two percent of it is organised with national and international food retail brands. However, the recent rebranding efforts are expected to bear fruit soon. Despite the slowdown the company went ahead with its plans of opening 100 new restaurants over the rest of 2015 as it is positive about the long-term growth.

A touch of controversy

It’s not as if the brand has not had its share of tough moments. In 2007, Pizza Hut, UK was pinpointed for high sodium content—more than two times the daily recommended amount of salt for an adult. Similarly, the meats used as toppings—ham, sausage and bacon were salty and fatty. To conform to the levels demanded by the Food Standards Agency, the company whittled down the salt by 15 percent. In 2010, too, Pizza Hut was criticised when its supplier of palm oil, was exposed to be illegally slashing and burning the Paradise Forests of Indonesia to plant palm oil plantations.

Rebranding and The Flavor of Now

The company announced a rebrand recently— the outcome of a deliberate effort to increase sales, which dropped in recent years. The menu called ‘The Flavor of Now’, introduced as many as ten new crust flavors like Honey Sriracha, Salted Pretzel, and Ginger Boom Boom; new ‘drizzles’ and sauces; and premium ingredients like Salami, Fresh Spinach and Peruvian Cherry Peppers.

That’s not all

Pizza Hut also revised its iconic logo, designed by Deutsch LA. The new logo was unveiled amidst much fanfare—reflecting the new gen lifestyle that included delivery boxes, cups and even employee uniforms. However, brand experts opine that its legacy as the first restaurant chain to introduce pizza and Western style casual dining to the world; it has a family-styled, roofed hut, very stylish decor with a youthful and zany colour palette. So just as long as Pizza Hut upholds its status as the original pizza place and constantly revamps its style to incorporate the finer nuances of the brand perspective, the brand should continue to live on.

By Kalyani Sardesai

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