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Pizza Hut Makes Risky Bet Its Expanded Menu Will Boost Sales

November 14, 2014: 12:00 AM EST
Pizza Hut’s decision to double its menu offerings to jump start slumping sales has attracted a lot of attention, but it is a risky strategy for the company and its franchisees. The main worry is that offering so many new pizzas and topping combinations will increase ingredient and preparation time costs, as well as franchisee training costs. The new pizzas are time-consuming to make and the ingredients pricier. If the new, more expensive, offerings catch on among the target audience of millennials, then it will all be worth it. Pizza Hut is confident, however, and a spokesperson said franchisees have been “extremely supportive of the changes”.
Kate Taylor, "Inside Pizza Hut's radical move to double its menu", Fortune, November 14, 2014, © Time Inc.
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