All about the Pizza Hut

found in most pea soups.

2006-02-20T13:05:00.000-06:00

2 cups split peas
6 cups water
2 14.5-ounce cans chicken broth (4 cups)
1/3 cup minced onion
1 large clove garlic, minced
2 teaspoons lemon juice
1 teaspoon salt
1 teaspoon granulated sugar
1/4 teaspoon dried parsley
1/4 teaspoon white pepper
dash dried thyme
1/2 cup barley
6 cups water
2 medium carrots, diced (about 1 cup)
1/2 stalk celery, diced (1/4 cup)

Garnish
chopped green onion

1. Rinse and drain the split peas, then add them to a large
pot with 6 cups of water, chicken broth, onion, garlic,
lemon juice, salt, sugar, parsley, pepper, and thyme. Bring
to a boil, then reduce heat and simmer for 75 minutes or until
the peas are soft.
2. While the peas are cooking, combine the barley with 6 cups
of water in a saucepan. Bring to a boil, then reduce heat and
simmer for 75 minutes or until the barley is soft and most of
the water has been absorbed.
3. When the split pea mixture has become a thick soup, use a
handheld blender to puree the peas until the mixture is smooth.
You may also use a standard blender or food processor for this step,
pureeing the soup in batches. Alternately, if you like, you may
skip this step, keeping the soup rather chunky. It's still good
this way, just not as smooth as the real thing.
4. Drain the barley mixture in a sieve or colander and add it to
the split pea mixture. Add the carrots and celery and continue to
simmer the soup for 15 to 30 minutes or until the carrots are
tender. Stir occasionally. Turn off the heat, cover the soup,
and let it sit for 10 to 15 minutes before serving. Garnish
each serving with a little chopped green onion.
Makes 8 servings.

Taco Bell® Mexican Pizza

2006-02-20T13:03:00.000-06:00

Hope you're hungry, 'cause this recipe makes four of the
Mexican Pizzas like those served at the Bell. Prepare to
blow your diners away with this one if they're at all
familiar with the real thing.

1/2 lb ground beef
2 tablespoons all-purpose flour
1 1/2 teaspoons chili powder (Spanish blend is best)
3/4 teaspoon salt
1/4 teaspoon dried minced onion
1/4 teaspoon paprika
dash garlic powder
dash onion powder
2 tablespoons water
8 small (6" diameter) flour tortillas
1 cup Crisco shortening or cooking oil
1 16-ounce can refried beans
2/3 cup mild Picante salsa
1/2 cup shredded cheddar cheese
1/2 cup shredded Monterey Jack cheese
1/3 cup diced tomato
1/4 cup chopped green onions

1. In a medium bowl, combine the ground beef with the flour,
chili powder, salt, dried onion, paprika, garlic powder, and
onion powder. Use your hands to thoroughly incorporate everything
into the ground beef.
2. Preheat a skillet over medium heat, and add the ground beef
mixture to the pan along with the water. Brown the beef mixture
for 5 to 6 minutes, using a wooden spoon or spatula to break up
the meat as it cooks.
3. Heat oil or Crisco shortening in a frying pan over medium high
heat. If oil begins to smoke, it is too hot. When oil is hot,
fry each tortilla for about 30 to 45 seconds per side and set
aside on paper towels. When frying each tortilla, be sure to pop
any bubbles that form so that tortilla lays flat in oil. Tortillas
should become golden brown.
4. Heat up refried beans in a small pan over the stove or in the
microwave. Preheat oven to 400 degrees.
5. When meat and tortillas are done, stack each pizza by first
spreading about 1/3 cup refried beans on the face of one tortilla.
Next spread 1/4 to 1/3 cup of meat, then another tortilla. Coat
your pizzas with two tablespoons of salsa on each, then combine
the cheeses and sprinkle the blend evenly over the top of each pizza.
Split up the diced tomato and arrange evenly over the cheese on
each pizza, followed by the green onion.
6. Place pizzas in your hot oven for 8-12 minutes or until cheese
on top is melted. Cut each pizza into 4 slices and serve.
Makes 4 pizzas.

Olive Garden Chicken Formaggio Pizza

2006-02-20T12:59:00.000-06:00

4 ounces Chicken breast; bone -- skin1 tablespoon Olive oil2 tablespoons Onions -- dice1 cup Tomatoes; drain -- dice1 teaspoon Garlic -- chop1/8 teaspoon Salt1/2 teaspoon Dried basil1/2 cup Fontinella cheese -- shred1/2 cup Mozzarella cheese -- shred1/2 cup Mushrooms -- slice1 tablespoon Parmesan cheese -- shred1 12" pre-baked pizza crust
Preheat oven to 450~F. Saute or bake chicken breast. Cool. Cut into 1/4" wide strips. Spray or grease a 12" pizza pan. Saute onions and garlic briefly in the olive oil and add them to the tomatoes,salt and basil.Spread the tomato mixture over the top of the crust. Lay chicken strips down over the tomatoes. Top with fontinella and mozzarella cheeses. Add the sliced mushooms and sprinkle with Parmesan cheese. Bake at 450 degrees F. for 8 minutes, or until cheese is melted and crust is piping hot.

How to annoy pizza people.

2006-02-20T12:13:00.000-06:00

1. If using a touch-tone, press random numbers while ordering. Ask the person taking the order to stop doing that.
2. Make up a charge-card name. Ask if they accept it.
3. Use CB lingo where applicable.
4. Order a Big Mac Extra Value Meal.
5. Terminate the call with, "Remember, we never had this conversation."
6. Tell the order taker a rival pizza place is on the other line and you're going with the lowest bidder.
7. Give them your address, exclaim, "Oh, just surprise me!" and hang up.
8. Answer their questions with questions.
9. In your breathiest voice, tell them to cut the crap about nutrition and ask if they have something outlandishly sinful.
10. Use these bonus words in the conversation: ROBUST, FREE-SPIRITED, COST-EFFICIENT, UKRAINIAN, and PUCE.
11. Tell them to put the crust on top this time.
12. Sing the order to the tune of your favorite song from Metallica's Master of Puppets CD.
13. Do not name the toppings you want. Rather, spell them out.
14. Put an extra edge in your voice when you say "crazy bread."
15. Stutter on the letter "p."
16. Ask for a deal available somewhere else. (e.g. If phoning Domino's, ask for a Cheeser! Cheeser!)
17. Ask what the order taker is wearing.
18. Crack your knuckles into the receiver.
19. Say hello, act stunned for five seconds, then behave as if they called you.
20. Rattle off your order with a determined air. If they ask if you would like drinks with that, panic and become disoriented.
21. Tell the order taker you're depressed. Get him/her to cheer you up.
22. Make a list of exotic cuisines. Order them as toppings.
23. Change your accent every three seconds.
24. Order 52 pepperoni slices prepared in a fractal pattern as follows from an equation you are about to dictate. Ask if they need paper.
25. Act like you know the order taker from somewhere. Say, "Bed-Wetters' Camp, right?"
26. Start your order with "I'd like. . .". A little later, slap yourself and say, "No, I don't."
27. If they repeat the order to make sure they have it right, say, "Okay, that'll be $10.99; please pull up to the first window."
28. Rent a pizza.
29. Order while using an electric knife sharpener.
30. Ask if you get to keep the pizza box. When they say yes, heave a sigh of relief.
31. Put the accent on the last syllable of "pepperoni." Use the long "i" sound.
32. Have your pizza "shaken, not stirred."
33. Say, "Are you sure this is Pizza Place? When they say yes, say, "Well, so is this! You've got some explaining to do!" When they
finally offer proof that it is, in fact, Pizza Place, start to cry and ask, "Do you know what it's like to be lied to?"
34. Move the mouthpiece farther and farther from your lips as you speak. When the call ends, jerk the mouthpiece back into place and
scream GOODBYE at the top of your lungs.
35. Tell them to double-check to make sure your pizza is, in fact, dead.
36. Imitate the order taker's voice.
37. Eliminate verbs from your speech.
38. When they say, "What would you like?"--say, "Huh? Oh, you mean now."
39. Play a sitar in the background.
40. Say it's your anniversary and you'd appreciate if the deliverer hid behind some furniture waiting for your spouse to
arrive so you can surprise him/her.
41. Amuse the order taker with little-known facts about country music.
42. Ask to see a menu.
43. Quote Carl Sandberg.
44. Say you'll be able to pay for this when the movie people call back.
45. Ask if they have any idea what is at stake with this pizza.
46. Ask what topping goes best with well-aged Chardonnay.
47. Belch directly into the mouthpiece; then tell your dog it should be ashamed.
48. Order a slice, not a whole pizza.
49. Shout, "I'm through with men/women! Send me a dozen of your best, Gaston!"
50. Doze off in the middle of the order, catch yourself, and say, "Where was I? Who are you?"
51. Psychoanalyze the order taker.
52. Ask what their phone number is. Hang up, call them, and ask again.
53. Order two toppings, then say, "No, they'll start fighting."
54. Learn to properly pronounce the ingredients of a Twinkie. Ask that these be included in the pizza.
55. Call to complain about service. Later, call to say you were drunk and didn't mean it.
56. Tell the order taker to tell the manager to tell his supervisor he's fired.
57. Report a petty theft to the order taker.
58. Use expletives like "Great Caesar's Ghost" and "Jesus Joseph and Mary in Tinsel Town."
59. Ask for the guy who took your order last time.
60. If he/she suggests anything, adamantly declare, "I shall not be swayed by your sweet words."
61. Wonder aloud if you should trim those nose hairs.
62. Try to talk while drinking something.
63. Start the conversation with "My Call to Pizza Place, Take 1, and. . . action!"
64. Ask if the pizza is organically grown.
65. Ask about pizza maintenance and repair.
66. Be vague in your order.
67. When they repeat your order, say, "Again, with a little more OOMPH this time."
68. If using a touch-tone press 9-1-1 every 5 seconds throughout the order.
69. After ordering, say, "I wonder what THIS button on the phone does." Simulate a cutoff.
70. Start the conversation by reciting today's date and saying, "This may be my last entry."
71. State your order and say that's as far as this relationship is going to get.
72. Ask if they're familiar with the term "spanking a pizza." Make up a description to go with the term. Ask that this be
done to your pizza.
73. Say, "Kssssssssssssssht" rather loudly into the phone. Ask if they felt that.
74. Detect the order taker's psychic aura. Use it to your advantage.
75. When listing toppings you want on your pizza, include another pizza.
76. Learn to play a blues riff on the harmonica. Stop talking at regular intervals to play it.
77. Ask if they would like to sample your pizza. Suggest an even trade.
78. Perfect a celebrity's voice. Stress that you won't take any crap from some two-bit can't-hack-it pimple-faced gofer.
79. Put them on hold.
80. Teach the order taker a scret code. Use the code on all subsequent orders.
81. Mumble, "There's a bomb under your seat." When asked to repeat that, say, "I said, 'sauce smothered with meat'."
82. Make the first topping you order mushrooms. Make the last thing you say, "No mushrooms, please." Hang up before they
have a chance to respond.
83. When the order is repeated, change it slightly. When it is repeated again, change it again. On the third time, say, "You just
don't get it, do you?"
84. When you'ge given the price, say, "Ooooooo, that sounds complicated. I hate math."
85. Haggle.
86. Order a one-inch pizza.
87. Order term life insurance.
88. When they say, "Will that be all?"--snicker and say, "We'll find out, won't we?"
89. Order with a Speak-n-Spell where applicable.
90. Ask how many dolphins were killed to make that pizza.
91. While on the phone, fake entering puberty. Fluctuate pitch often; act embarrassed.
92. Engage in some serious swapping.
93. Dance all around the word "pizza." Avoid saying it at all costs. If he/she says it, say, "Please don't mention that word."
94. Have a movie with a good car chase scene playing loudly in the background. Yell "OW!" when a bullet is fired.
95. If he/she suggests a side order, ask why he/she is punishing you.
96. Ask if the pizza has had its shots.
97. Order a steamed pizza.
98. Get taker's name. Later, call exactly on the hour to say, "This is your time of day wake-up call, So-and-so." Hang up.
99. Offer to pay for the pizza with a public flogging.
100. If any of the above practices are rejected by the order taker, say, in your best pouty voice, "Last guy let me do it."

UNO'S DEEP PAN PIZZA

2006-02-20T12:09:00.000-06:00

Recipe By : Serving Size : 4 Preparation Time :0:00Categories : Italian Pizza Meats
Amount Measure Ingredient -- Preparation Method-------- ------------ -------------------------------- -----CRUST----- 1 c Warm tap water (110-115ш) 1 t Active dry yeast 3 1/2 c Flour 1/2 c Coarse ground cornmeal 1 t Salt 1/4 c Vegetable oil -----FILLING----- 1 lb Mozzarella, sliced 1 lb Sausage, removed from the Casing and crumbled 1 cn Whole tomatos, drained and Coarsely crushed 2 c Cloves, peeled and minced 3 ts Dried oregano,OR 5 Fresh basil leaves, Shredded 4 tb Freshly grated Parmesan Cheese
Pour the warm water into a large mixing bowl and dissolve the yeast with a fork. Add 1 cup of flour, all of the cornmeal, salt, and, and vegetable oil. Mix well with a spoon. Continue stirring in the rest of the flour 1/2 cup at a time, until the dough comes away from the sides of the bowl. Flour your hands and the work surface and kneed the ball of dough until it is no longer sticky. Let the dough rise in an oiled bowl, sealed with plastic wrap, for 45 to 60 minutes in a warm place, until it is doubled in bulk. Punch it down and kneed it briefly. Press it into an oiled 15-inch deep dish pizza pan, until it comes 2 inches up the sides and is even on the bottom of the pan. Let the dough rise 15-20 minutes before filling. Preheat the oven to 500 degrees. While the dough is rising, prepare the filling. Cook the crumbled sausage until it is no longer pink, drain it of it's excess fat. Drain and chop the tomatos. When the dough has finished its second rising, lay the cheese over the dough shell. Then distribute the sausage and garlic over the cheese. Top with the tomatos. Sprinkle on the seasonings and Parmesan cheese. Bake for 15 minutes at 500 degrees. Then lower the temperature to 400 degrees and bake for 25 to 35 minutes longer. Lift up a section of the crust from time to time with a spatula to check on its color. The crust will be golden brown when done. Serve immediately.

Pizza domowa

2006-02-20T12:05:00.000-06:00

VSkładniki
1. 30 dkg maki pszennej
2. 3 dkg drozdzy
3. 0, 5 − 0, 75 szklanki mleka
4. szczypta soli
5. szczypta cukru
6. dwie łyzki oleju
7. przecier pomidorowy
8. dodatki według gustu
Sposób przyrzadzania
Ciepłym, lecz nie za goracym mlekiem zalac drozdze. Wymieszac i wlac do maki.
Ciasto zagniesc i wyłozyc do prodiza, posmarowac dwoma łyzkami oleju oraz gestym
przecierem pomidorowym. Nałozyc dodatki (pieczarki, kiełbasa pokrojona w kostke,
grzyby lesne, papryka, pomidory, cebula, salami, kurczak - co kto lubi, osobiscie
polecam kiełbaske, pomidory i duzo cebuli) i posypac startym serem. Piec około
30 minut, w zaleznosci od rodzaju piekarnika/prodizu byc moze dłuzej. Podawac z
zimnym piwem lub winem półwytrawnym.
Smacznego !

PIZZA HUT PIZZA DOUGH

2006-02-20T11:57:00.000-06:00

1 1/3 cup water2 teaspoons sugar1 1/4 teaspoons salt2 tablespoons olive oil2 tablespoons cornmeal2 cups unbleached all purpose flour1 cup bread flour1 teaspoon baking powder1/4 teaspoon garlic powder1/4 teaspoon onion powder3/8 teaspoon MSG1 1/2 teaspoons yeast(You may use all-purpose flour only for this recipe)
Bread machine: Add ingredients to machine bread pan in order given or as permanufacturer's instructions. Set to 'dough' mode.
Food processor:Place water, sugar, salt and olive oil in bowl of food processor and pulseto dissolve sugar and salt. Add yeast, bread flour, all purpose flour otherdry ingredients. Process until a soft ball forms. Remove from machine andallow to rest, covered with a tea towel, about 45 minutes.
Dough hook:Place water, sugar, salt and olive oil in bowl of mixer and dissolve sugarand salt. Stir in yeast, bread flour, all purpose flour, other dryingredients and knead with dough hook to form a soft, but not-too stickydough (about 8 minutes). Remove from machine and allow to rest, covered witha tea towel about 45 minutes.
By Hand:In this case, use only all-purpose flour. Place water, sugar, salt and oliveoil in bowl and dissolve sugar and salt. Stir in yeast, all purpose flour,other dry ingredients and knead to form a soft, but not-too sticky dough(about 8-l0 minutes). Allow to rest, covered with a tea towel about 45minutes.
(*) For a breadier pizza dough - depending on taste and recipe requirements,you can add an additional 1/4 tsp. yeast.
Deflate dough very gently before using and allow it to rest a further 15minutes before using in a recipe. You may refrigerate dough in an oiledplastic bag for up to two days.

PIZZA HUT PIZZA DOUGH

2006-02-20T11:50:00.000-06:00

BABOLI PIZZA CRUST

2006-02-20T11:48:00.000-06:00

Recipe By : Serving Size : 1 Preparation Time :0:00Categories : Breads Pizza
Amount Measure Ingredient -- Preparation Method-------- ------------ -------------------------------- 1 pk Yeast 1/4 c Water -- warm 6 tb Olive oil -- + extra for pan 6 c Flour 1 t Salt (Optional) 2 1/4 c Water -- warm -----TOPPINGS----- SEA SALT -- OR KOSHER SALT Pepper -- ground 4 tb Olive Oil Chopped Rosemary and Thyme 2 tb Water
Mix together first six ingredients and let rise 30 to 0 minutes. Divide dough into 3 parts and place in 3 olive-oiled pie pans. Dimple dough with fingers. Mix olive oil and water, brush tops with this mixture. Sprinkle on top: sea salt, pepper, rosemary and thyme. Let rise 50 to 60 mins. Bake at 350 degrees F. for 25 minutes. May dip in olive oil. Peggy also says if the herbs are dried to soak in water 10 minutes and then pat dry with paper towels.

Pizza Hut Cavatini

2006-02-20T11:38:00.000-06:00

Notes:This recipe was graciously submitted by Tammy Bentz. This is a great way to dress up pasta !
Ingredients:1/2 lb. pepperoni - sliced thin1/4 lb. spiral noodles1 green pepper - sliced thin1/4 lb. shell noodles1 onion - sliced thin1/4 lb. wheel noodlesmushrooms ( optional )8 oz. mozzarella cheese (shredded)1/2 lb. hamburger (browned) 8 oz. Parmesan cheese (shredded)1/2 lb. Italian sausage (browned)2 jars spaghetti sauce (32 oz.) your choice
Preparation:Cook noodles according to box directions. Heat sauce & combine with cooked hamburger and cooked sausage. In a 11 X 13 pan, sprayed with Pam cooking spray, layer noodles and sauce. Top layer with pepperoni, onions and green peppers, mushrooms and cheeses. Make about 3 layers and top with cheese.Bake at 350 degrees for about 45 minutes or until cheese is melted.

The Only Pizza You'll Ever Want Again: Chicken, Sun Dried Tomato, Broccoli, Ricotta, Mozzarella and Basil

2006-02-20T11:32:00.000-06:00

Recipe courtesy Rachael Ray and TrippRecipe SummaryDifficulty: EasyPrep Time: 15 minutesCook Time: 20 minutesYield: 8 slices, 4 servingsUser Rating:Episode#: TM1B76Copyright © 2003 Television Food Network, G.P., All Rights ReservedCrust:1 (16-ounce) package pizza dough, brought to room temperature2 teaspoons extra-virgin olive oil2 tablespoons grated Parmigiano-ReggianoToppings:1/3 pound broccoli from trimmed broccoli bin in produce section, 1/3 head1 tablespoon extra-virgin olive oil, 1 turn of the pan3 cloves cracked garlic1/2 pound chicken breast cut for stir fry or chicken tendersSalt and freshly ground black pepper1 cup part skim ricotta cheese10 sun dried tomatoes in oil, drained and sliced1 cup shredded mozzarella cheese, available on dairy aisle12 to 15 leaves fresh basil, torn or stacked and thinly slicedPreheat oven to 500 degrees F.On a 12-inch nonstick pizza pan, stretch out your dough and form the pizza crust. Drizzle 2 teaspoonsextra virgin olive oil on crust and spread it with a pastry brush over the dough to the edges. Sprinkle crustwith 2 tablespoons grated Parmigiano-Reggiano.In a small covered saucepan, bring 2 inches water to a boil. Separate broccoli tops into florets, discardinglower stalks or reserving for soup. Salt water and add broccoli florets. Cook covered 3 to 5 minutes. Drainbroccoli and set on cutting board. Chop broccoli florets into small pieces.Heat a small nonstick pan over medium high to high heat. Add oil, cracked garlic and chicken. Seasonwith salt and pepper. Brown chicken breast cut for stir-fry or tenders until lightly golden all over, 3 to 5minutes. Chop sauteed chicken and garlic on a cutting board into small pieces.To assemble pizza, dot crust with chopped broccoli bits and cooked chopped chicken. Dot crust withspoonfuls of ricotta and spread ricotta gently with the back of your spoon. Add sliced sun-dried tomatoes,scattering them around the pizza to the edges. Complete the assembly with a thin layer of shreddedmozzarella, about 1 cup. Place pizza in oven on middle rack and lower heat to 450 degrees F. Bake 12minutes, until cheese is deep golden in color and crust is brown and crisp at the edges. Remove pizzafrom the oven and let stand 5 minutes. Top with lots of torn or shredded basil. Cut pizza into 8 slicesusing pizza wheel and serve.

PIZZA HUT ORIGINAL PAN PIZZA

2006-02-20T11:24:00.000-06:00

Molho1 lata de molho de tomate (simples, sem tempero se possível sem sal).
1 colher de chá orégano
1/2 colher de chá. de manjerona
1/2 colher de chá Manjericão desidratado
1/2 colher de chá de sal de alho ( vendido em qualquer supermercado)
Misture todos os ingredientes e deixe descansar por 1 hora.
Massa300 ml. água morna (40ºc)1/4 de xícara de leite em pó desnatado1/2 colher de chá de sal
4 xicaras de farinha de trigo
1 colher de sopa de açúcar granulado30g de fermento biológico2 colheres de sopa de óleo vegetal (para massa)250 ml. óleo vegetal (85 ml por pizza)Butter-flavored Pam
Misture o fermento, açúcar, sal, e o leite em pó em uma vasilha grande. Adicione a água morna e misture bem. Deixe descansar por 2 minutos.
Acrescente o óleo e misture bem . Misture a farinha até a massa se formar e absorver a farinha. Coloque a massa em uma superfície lisa e sove por aproximadamente 10 min. Divida a massa em 3 bolas.
Coloque 80ml em cada uma das três assadeiras redondas de 23 centímetros para bolo, lembre-se de espalhar bem. Abra a massa em um disco de aproximadamente 23 centímetros. Coloque na assadeira com óleo. Passe um pouco de manteiga nas bordas da massa. Cubra com um prato e deixe descansar em uma área aquecida por aproximadamente 2 horas. .
PARA CADA UMA DAS PIZZAS:
Aqueça o forno a 250ºC.
Espalhe com uma colher 1/3 xícara de molho sobre a massa, deixando a borda sem molho(a mesma borda que vc tinha passado manteiga aproximadamente 2.5 cm da borda.
Distribua 50 gramas de queijo mussarela ralada sobre o molho.
Coloque os ingredientes do seu gosto: Pepperoni, presunto, frango com catupiry , vegetais, carnes. Faca o sabor que vc imaginar.
Cubra com 90 gramas de queijo mussarela
Asse até o queijo borbulhar e a massa da borda ficar bem dourada. Corte em seis pedaços e BOM APETITE.

News Top Pizza Hut marketer departs after 12 months

2006-02-16T14:34:00.000-06:00

Martin Pugh, marketing director of Pizza Hut UK, has left the fast-food chain without a job to go to, after just one year in the role.
Pugh, a high-profile retail marketer who has also held senior roles at Safeway and Comet, joined the chain only last summer. He is understood to have left at the end of last week to pursue other opportunities.
According to insiders, Pugh's departure is by mutual consent after he decided that the job was 'not for him'.
Pugh's arrival heralded the start of a major brand revitalisation at Pizza Hut and he oversaw the shake-up of most of its marketing supplier arrangements, including the appointment of Wieden & Kennedy as the company's creative agency and Starcom UK to handle its media. He also introduced Pizza Hut's ad campaign using the slogan 'Who's in the Hut?'
Prior to joining Pizza Hut, Pugh was marketing chief at Safeway for two years. He left the supermarket shortly after its takeover by Morrisons in March last year.
John Derkach, UK chief executive of Pizza Hut, confirmed that Pugh had left.
Simon Wallis, Pizza Hut's director of retail marketing, is expected to assume Pugh's responsibilities on a temporary basis while a successor is sought.
Pizza Hut, which is owned by Yum!, has placed a strong emphasis on product innovation this year. New offerings have included the UK debut of its US bestseller pizza, 4forAll.
The pizza, which has four individual toppings, was launched in March backed by a heavyweight advertising campaign created by Wieden & Kennedy.
PHOTO (COLOR): Pizza Hut: Pugh bought 'Who's in the Hut?' ads
~~~~~~~~
By Ben Carter

News CATEGORY WAR Pizza Hut, Papa John's Position for Pan Pie Profits

2006-02-16T14:33:00.000-06:00

Longtime rivals square off over product, consumers in new efforts.
PIZZA SALES TYPICALLY heat up during football season. So it is not surprising that Papa John's and Pizza Hut have new creative. But given the history of the two companies, is it a game of one-upsmanship or mere coincidence that both are touting the same product--pan pizzas?
Papa's Perfect Pan will enter the marketplace with $25 million-plus worth of media pomp and circumstance beginning Oct. 3. Pizza Hut, meanwhile, debuted a $32 million national campaign on Sept. 25 touting a pan pizza 25th anniversary special offer.
"It wouldn't surprise me one bit if someone is trying to steal someone else's thunder," said Steve Coomes, senior editor of Pizzamarketplace.com, Louisville, Ky. "I don't think there's any irony that all of them are jockeying for position."
To fully understand the competitors' motivations, one only needs to know that Pizza Hut co-founder and former president Frank Carney is now one of Papa John's biggest franchisees. Carney left when Pepsi bought Pizza Hut in the '80s. The chain is now owned by Yum! Brands, Louisville.
What's more, Papa John's chose Wichita, Kan., the city where Pizza Hut was founded, to test its pan pizza over the last three years.
However you slice it, at $27.3 billion in 2004, pizza is big business. Pizza Hut did $5.3 billion in sales in 2004, Domino's $3.2 billion and Papa John's $1.7 billion, per Technomic, Chicago. Papa John's operates 2,888 restaurants in 20 countries. Pizza Hut, Dallas, has some 12,000 locations in 86 countries. Domino's, Ann Arbor, Mich., has 7,750 outlets in 50 countries.
The pan pizza launch is Papa John's biggest since 1996, when it unveiled its thin crust pies. It also marks the first time the No. 3 pizza chain has hired a celebrity spokesman. Pro football Hall of Famer Dan Marino will star in the "Go deep" debut campaign, via Z Group, Miami.
Domino's has steered clear of the deep dish wars, electing to serve up its new Steak Fanatic pizza earlier this month.
The pan pizza is the "largest and most significant new product launch in company history," said Chris Sternberg, a Papa John's rep. "Our research shows a good percentage of pizza eaters like pan pizza. We've been missing out on the opportunity to serve them."
Papa John's version is a "square pan which allows customers to pile on our 'better ingredients' deep," said Sternberg. Its introductory offer has a suggested price of $12.99 for a large pie with five toppings.
Pizza Hut, meanwhile, is offering a medium one-topping pizza for 25? with the purchase of any large specialty pizza. Three commercials, via BBDO, New York, focus on the deal. In one spot, a Pizza Hut delivery driver places a quarter under a customer's pillow.
Papa John spent $85 million on media in 2004 and $45 million January-July 2005, per Nielsen Monitor-Plus. Pizza Hut spent $234 million and $153 million, respectively.
"They embody that fighting spirit," Pizzamarketplace.com's Coomes said of Papa John's new launch against the category's No. 1 player. "They showed it earlier this year when they spoofed Domino's appearance on The Apprentice."
To generate buzz, Papa John's will bring Marino, company founder John Schattner and ESPN's Trey Wingo together in New York's Times Square on Sept. 30. A "Go deep for a chance to win" sweeps will also run Oct. 2 on ESPN during the Arizona Cardinals-San Francisco 49ers game in Mexico City. Radio and print support. Papa John's will also make a contribution to the Dan Marino Foundation.
PHOTO (COLOR): Pan handlers: Pizza Hut spot (left) and Papa John's creative both support pan pizza items.
~~~~~~~~
By Kenneth Hein

For the Record Court Shaves Plaintiff List In Pizza Hut Suit

2006-02-16T14:32:00.001-06:00

Dateline: DALLAS —
A U.S. District Court judge has granted a motion by Pizza Hut to strike a substantial number of plaintiffs from a class-action lawsuit pending in California, the company announced in July.
The move by the U.S. District Court for the Central District of California reduces the number of plaintiffs to 87, or around 2.5 percent of all of those eligible to sue the fast-food giant.
Pizza Hut parent, Yum! Brands, disclosed the development in its 10-Q filing in July.
The original suit, filed in 2003, alleges that Pizza Hut improperly denied overtime pay to restaurant general managers by classifying them as salaried employees.
Attorneys for lead plaintiff Ann Coldiron last year claimed that up to 3,100 restaurant managers might claim damages reaching some $300 million.
But the court's move may render that estimate obsolete.
Yum! said it will continue to "vigorously defend" itself in the suit. In recent years, other restaurant companies have opted to settle with plaintiffs in wage and hour disputes in California.

Adwatch Pizza Hut

2006-02-16T14:32:00.000-06:00

'Bird table'
The current Pizza Hut ad campaign is remarkable for many things, but the most interesting among these is that it is not really about food. Sounds very modern, I hear you say, but it is not entirely unheard of.
From stretchy cheese shots to Chris Waddle with a bag on his head to more stretchy cheese, to men in bird suits there seems to have been two opposing voices in Pizza Hut's advertising over the past 10 years or so. One says 'show me cheese'; the other, 'it's a fun place'. One sells Pizza, the other, Hut.
In the latest ads, the 'huttists' are in control. A bird flies into a bird box, where it discovers a cosy avian version of Pizza Hut. Now we see that it is no longer a real bird, but a man dressed up as one, as are the other inhabitants. A conversation then begins about a ?24.99 family meal deal and a fat man in a blue-tit costume. The ad ends with the endearingly stupid 'Hutspitality all round'.
Nice directorial ideas lighten the brutal populism of the bird-costume thing and, overall, the campaign is well targeted. Families demand a certain informal hospitality, and the clues are there for the parent wishing to take their children out for a meal without fear of unpleasantness. The hints are also there for the more adult meet-up-for-pizza market. Even more ingeniously the ad manages to appeal to the first group without putting off the second.
I am sure this is the right sort of territory for Pizza Hut; we parents will always appreciate crayon-pushing waitresses, while kids will always appreciate men in silly costumes. But, this being Pizza Hut, I am virtually obliged to point out that the ads have a lot of ingredients and are quite hard to digest.
For comparison's sake, both KFC and McDonald's seem to have settled down with simple, versatile, on-the-money campaigns, namely 'Soul food' and 'I'm lovin' it'.
Perhaps Pizza Hut also needs something that both chef and modern agency planner can shake on. And, as if to spur it on, somewhere out there in the wilderness, the other Pizza Hut voice is still muttering 'Show me cheese'.
PHOTO (COLOR): Pizza Hut: researches target markets but not easy to digest
PHOTO (COLOR)
~~~~~~~~
By Dominic Gettings, Creative director, Euro RSCG London

GREATER CHINA Pizza Hut breaks summer splash with new flavours

2006-02-16T14:31:00.000-06:00

Dateline: HONG KONG:
Pizza Hut has unveiled the latest stage of its 'Share a slice of life' campaign, shifting the setting from indoors for its recently aired delivery service ads to outside in order to promote two new pizza flavours designed to whet appetites during the summer months — eel and soft shell crab.
Pizza Hut is seeking to dispel the idea that it only offers filling food more suited to colder seasons while continuing to build on its theme that pizza offers an enjoyable communal eating experience, said Royce Yuen, group managing director of the agency behind the campaign, Ogilvy & Mather Southern China.
'Summer is not just about volleyball, it is about sharing food and having fun,' Yuen said.
Ogilvy has created two TVCs for Pizza Hut's summertime push, one which broke in mid-June and one due to air in August.
PHOTO (COLOR): Pizza Hut…'Share a slice' push

News Yum! to buy Pizza Hut stake from Whitbread?

2006-02-16T14:30:00.000-06:00

Leisure giant Whitbread has denied speculation that it has pulled out of its Pizza Hut franchise deal with American owner Yum! Restaurants.
Under the terms of the joint venture, Whitbread and Yum! each own 50% of the UK operation, which comprises more than 600 sites.
But an industry insider said Yum!, which also owns KFC and Taco Bell, had reached a deal to buy out Whitbread at the end of last week, a move which they claimed made sense for both sides.
"Yum! has done similar deals in other countries," the source said, "and it fits with its strategy of buying out franchise partners."
The source believes that the relationship between Whitbread and Yum! had run its course. "The original reason for the joint venture was that Whitbread was growing restaurant brands and its experience of the UK market was useful to Yum! That's no longer the case."
The pull-out would also be consistent with recent calls for Whitbread to reorganise its business. A note issued by corporate broker Panmure Gordon last week said further restructuring at Whitbread was unavoidable.
"With only the budget hotels delivering growth above cost of capital returns, we believe Whitbread either has to restructure or face the prospect of a bidder doing it.
"We believe that Yum! management is a ready buyer of Pizza Hut. We estimate Whitbread's 50% share in Pizza Hut UK is worth about ?120m."
A Whitbread spokeswoman dismissed the speculation. "We have a strategic investment in Pizza Hut UK and we enjoy a good relationship with Yum! There are no plans in place to make any changes to our existing relationship and we are committed to growing the business with them."
Yum! initially issued a denial, but withdrew it a few hours later and declined to comment further.
PHOTO (COLOR): Pizza Hut UK is jointly owned by Whitbread and Yum!… for the moment, that is
~~~~~~~~
By Tom Bill

News New campaign: Pizza Hut

2006-02-16T14:28:00.000-06:00

Creative agency: Wieden & Kennedy
Media agency: Starcom Motive.
Pizza Hut is continuing its 'Hutspitality' campaign with two ads breaking this week. The work is based on a bird theme and both ads begin with a shot of a birdbox and a voiceover asking 'Who's in the hut?', before cutting to the interior. In the first ad, people in bird costumes are shown eating Pizza Hut's 'Full Works' deal, joined later by a blue tit, which has stopped off for some milk. An owl warns the blue tit against ruining its appetite because the deal offers so much food. The second ad is intended to flag up the deal's sharing aspect, with a magpie stealing food from other birds' plates. The activity is the latest phase of a campaign that began in March and was Wieden & Kennedy's first work for Pizza Hut since winning the ?13m business.
PHOTO (COLOR)

MALAYSIA ADWATCH Malaysian telcos wage TV war but Pizza Hut hits top spot

2006-02-16T14:27:00.000-06:00

Pizza Hut took top spot, but it was the telco wars which stole the spotlight with TV audiences.
The telco wars are in full swing in Malaysia, judging by the March Adwatch chart, with the country's top three telcos — Maxis, Digi and Celcom — all having TVCs placing in the top five.
Maxis' prepaid brand Hotlink emerged in second place with a campaign targeting the youth segment. Since the account was awarded to BBDO late last year, the brand has made a significant branding push in the market.
Close behind was competitor Digi in third place, which launched its 'Beyond Prepaid' campaign in March as a means to boost postpaid subscribers. The campaign was created by Naga DDB to advertise that added value services, including caller ID, call waiting and call divert, would be free of charge, while Maxis and Celcom charge up to RM 8 (about US$2).
Telcos in Malaysia are some of the biggest spenders on advertising, each spending up to RM 100 million per year.
The number one spot in the March poll was scooped by a campaign for Pizza Hut, which launched a campaign for Rich Gold Crust pizza, a choice which has a ring of potato around the edge, in February.
"This pizza is an exciting fusion of tastes, textures and colours that burst into an exciting culinary journey," said Kok Peng, account manager, Ogilvy & Mather Malaysia. 'It evokes not only our taste buds but also our imagination, which ties in with our TVC storyline.'
The TVC revolves around the idea of a man humouring his friends with a fictional story about a much-talked about product that everyone is into — the Rich Gold Crust pizza.
Other brands featured in the chart include petrol brand Petronas in fourth place, Rejoice in sixth, McDonald's in eighth place and Citibank Credit Card in 14th.
ADWATCH: The industry analysis of advertisement recall Legends for Chart:A-B-AccountC-Agency/TV buyerD-%Q: which of the following Malaysia advertisements have you seen or heard of recently?A BC D1 Pizza HutOgilvy & Mather/MindShare 902 Maxis Hotlink — ActivateBBDO/MindShare 883 Digi Telecom — Beyond PrepaidNaga DDB/OMD 884 PetronasLeo Burnett/Starcom 865 Celcom-X Pax My Favourite Pre PaidM&C Saatchi/ZenithOptimedia 856 Rejoice Rich ShampooLeo Burnett/Starcom 857 Telekom Malaysia — Telekom BillSaatchi & Saatchi/ZenithOptimedia 838 McDonald'sLeo Burnett/OMD 839 Malaysia Airlines — Travel FairLeo Burnett/Starcom 8010 Head & ShouldersOgilvy & Mather/MindShare 8011 Kurnia InsuranceNaga DDB/OMD 7912 Telekom Malaysia — GreetingsTBWA/MindShare 7613 Maxis — GreetingsBBDO/MindShare 7514 Citibank Credit CardY&R/MEC 7515 Petronas — GreetingsM&C Saatchi/ZenithOptimedia 7216 PlusBloomingdale/Bloomingdale 7217 Pantene Pro-VGrey Global Group/Starcom 7218 Lady's Choice MayonnaiseGrey Global Group/Maxis 6919 Kementerian Kebudayaan, Kesenian & PelanconganIn-house/In-house 6920 Disney On IceIn-house/In-house 66Adwatch research was conducted in last month as part of AsiaBUS, a monthly omnibus survey of 1,000 adults by Synovate — Harold Lee: 852-2830-2598. OMD provided the list of television commercials for the research — Susanna Lam: 852-2911-1668.
PHOTO (COLOR): Pizza Hut, Rejoice Rich Shampoo and Petronas… the story of a mythical pizza fired the imaginations of Malaysia's TV audience
PHOTO (COLOR): 1 Pizza Hut
PHOTO (COLOR): 2 Maxis Hotlink
PHOTO (COLOR): 4 Petronas
PHOTO (COLOR): 5 Celom-X
PHOTO (COLOR): 6 Rejoice Rich Shampoo
PHOTO (COLOR): 8 McDonald's
PHOTO (COLOR): 9 Malaysia Airlines
PHOTO (COLOR): 17 Pantene Pro-V
~~~~~~~~
By Amy White

News New campaign: Pizza Hut

2006-02-16T14:26:00.001-06:00

Creative agency Wieden & Kennedy
Media agency Starcom Motive.
Pizza Hut is to introduce the strapline 'Hutspitality all round' into its advertising. The slogan appears in the first TV commercial created for the restaurant chain by Wieden & Kennedy, which won the ?13m business from Abbott Mead Vickers BBDO in February. The campaign, which promotes Pizza Hut's 4ForAll meal, features a hut set deep in a forest. The hut is full of people eating pizza, with fortune tellers using the square pizza as if the slices were tarot cards. The ads break this week and will run on ITV1, Channel 4, Five and some Sky channels. The television work will be supported by a 30-second radio execution and in-store promotional activity. 4ForAll, which was introduced in the US last year, comprises four six-inch-square pizzas, each with a different set of toppings.

News Pizza Hut targets family sales with 4ForAll debut

2006-02-16T14:26:00.000-06:00

Pizza Hut is planning to bring one of its most-successful flagship pizza products in the US to UK in an attempt to boost sales and bolster its menu's flexibility.
The 4ForAll — four individually-topped, six-inch-square pizzas in one box — is the first product of its type launched by the pizza chain in the UK. It is intended to overcome the problem of families rejecting the option of eating pizza because of indecision over toppings.
Pizza Hut is planning aggressive activity to promote the product, which will be priced ?10.99 and will be available from 21 March.
Ads will be created by Wieden & Kennedy London, its first work for Pizza Hut since it picked up the account from Abbott Mead Vickers BBDO last month.
Simon Wallis, director of retail marketing at Pizza Hut, said the aim is to establish 4ForAll as a flagship product in the UK, adding that its importance ranked alongside that of the introduction of its Stuffed Crust variant in 1995.
'Product innovation continues to be a key driver of our success and the 4ForAll pizza is a significant launch for us in 2005.'
The product was introduced by Pizza Hut in the US last year during the key advertising period of the Super Bowl, with executions featuring Miss Piggy and Jessica Simpson. It has been a major success, fuelling 6% and 5% sales increases for the first and second quarters of 2004 respectively.
Rival pizza chain Domino's has subsequently developed a competitor product — the Four Quarters pizza.
PHOTO (COLOR): Pizza Hut: targeting families with 4ForAll
~~~~~~~~
By Mark Sweney

The World: Ad Age Global News & Data Pizza Hut taps Wieden for U.K.

2006-02-16T14:25:00.000-06:00

Dateline: [London]
Pizza Hut, jointly owned in the U.K. by Whitbread and Yum Brands, has appointed independent agency Wieden & Kennedy London to create a fresh $25 million marketing strategy for the U.K.'s leading pizza chain. The main focus will be to increase traffic, but Wieden's work will also highlight Pizza Hut's recent introduction of healthier options such as a lower fat Pizza called Hi-Light, and an extension of its salad range. Wieden & Kennedy beat independent London agencies WCRS and Clemmow Hornby Inge, as well as Bartle Bogle Hegarty, owned 49% by Publicis Groupe. Omnicom-owned incumbent Abbott Mead Vickers BBDO did not re-pitch.
~~~~~~~~
By Emma Hall
Edited by Laurel Wentz

W&K scoops Pizza Hut

2006-02-16T14:24:00.000-06:00

Agency wins four-way pitch to snatch pounds 10 million account from AMV BBDO.
Wieden & Kennedy has won the pounds 10 million Pizza Hut account following a four-way pitch against Clemmow Hornby Inge, WCRS and Bartle Bogle Hegarty.
The win adds to the pounds 4.5 million-worth of business the agency brought in last week when it triumphed in the Sky One pitch against Clemmow Hornby Inge, DDB London and Fallon.
The win also sees the restaurant chain terminate its seven-year relationship with Abbott Mead Vickers BBDO. The agency, which declined to re-pitch for the account, has overseen the business since 1998 and has worked on campaigns including the pounds 4 million sponsorship of The Simpsons on Channel 4.
The brand's advertising will now focus on raising the profile of the business. W&K will provide a brand idea for the restaurant chain suitable to run across all media. The first campaign will break in six weeks and ads will focus mainly on TV and radio.
Pizza Hut will also continue to sponsor The Simpsons; W&K has been briefed to create a new set of idents.
Neil Christie, the managing director of W&K, said: 'We are absolutely delighted to have won two big pitches in the space of a week. Both are blue-chip clients that we have won against great competition. It shows that we have our new-business mojo working this year.'
The creative account move follows a recent review of all of Pizza Hut's marketing partners. Last month, it handed its multimillion-pound below-the-line account to Elvis and, in June, it moved its media business from PHD to Starcom Motive.
Pizza Hut has recently extended its menu to include healthier options, such as the Hi-Light-branded low-fat pizzas and a bigger range of salads. This follows the strategy adopted by its competitors, McDonald's and Burger King, both of which have introduced healthier choices. McDonald's is using advertising to push its healthier breakfast and salad offerings.
The 616-outlet Pizza Hut chain, a joint venture between Whitbread and Yum! Brands, plans to open a further 65 restaurants this year.
PHOTO (COLOR): Christie...'we have our new-business mojo working this year'
~~~~~~~~
By Emma Barns

Pizza Hut hands ?13m ad account to W&K London

2006-02-16T14:23:00.000-06:00

Pizza Hut has awarded its ?13m advertising business to Wieden & Kennedy London as the fast-food chain seeks to revitalise its marketing strategy.
The business moves from Abbott Mead Vickers BBDO, which has held the account, including the high-profile ?4m sponsorship of The Simpsons on Channel 4, since 1998. W&K's appointment follows a review of its media and direct business.
Future advertising will build on changes to Pizza Hut's menu last year, which included an extension of its salads range and the introduction of healthier options with a line of lower-fat pizzas branded Hi-Light. The additions matched similar initiatives by Burger King and McDonald's.
The 616-outlet chain, a joint venture between Whitbread and Yum! Brands, plans to open a further 65 restaurants this year.
W&K beat Clemmow Hornby Inge, DDB London and Bartle Bogle Hegarty, which handles the creative account for Yum!-owned KFC. AMV BBDO declined to repitch.
Last month, Pizza Hut handed Elvis its multimillion-pound direct account in a shift of strategic focus away from fast food toward casual dining. In June, it moved its media business from PHD to Starcom Motive.
~~~~~~~~
By Mark Sweney

News Pizza Hut hands account to Elvis

2006-02-16T14:22:00.000-06:00

Pizza Hut has handed direct agency Elvis its multimillion-pound below-the-line account as it changes its strategy to focus on casual dining rather than fast food.
Elvis, which won a four-way pitch against incumbent Minerva, RPM3 and Tequila, has already begun work on the brand values of the 440-restaurant chain.
It will also handle direct mail, product launches and digital marketing, including the chain's first foray into SMS promotions.
Pizza Hut is reviewing its ?10m ad account out of incumbent Abbott Mead Vickers BBDO. Wieden & Kennedy, Clemmow Hornby Inge, WCRS and Bartle Bogle Hegarty are shortlisted.

Pizza Hut reviews ?11m creative brief

2006-02-16T14:21:00.000-06:00

Pizza Hut is preparing to review its ?11 million above-the-line advertising account, which is held by Abbott Mead Vickers BBDO.
The fast-food chain, a joint venture between Whitbread and Yum! Brands, is in the early stages of contacting agencies. The account has been held by AMV since 1998.
Pizza Hut has already reviewed its media account this year, which moved from the AMV-aligned PHD to Starcom Motive in June. It is also looking at its direct marketing arrangements, handled by the AMV sister agency Minerva. A DM pitch is scheduled to be held in two weeks' time.
The review is being overseen by Pizza Hut's director of retail marketing, Simon Wallis. Wallis reports to the marketing director, Martin Pugh, who joined the company earlier this year from Safeway, after the supermarket chain was taken over by Morrisons.
A Pizza Hut spokeswoman said: 'As with all major organisations, it is our policy to request a competitive pitch of our UK advertising business every few years to ensure continued media excellence.'
The company signed up earlier this month as the headline sponsor of Channel 4's high-profile The Simpsons for the next year.
PHOTO (COLOR): Pizza Hut...also planning to review its direct marketing business

Direct News Pizza Hut sets about review of POS work

2006-02-16T14:20:00.000-06:00

Pizza Hut is reviewing its multimillion-pound point-of-sale account to attract more customers to its 400 restaurants and 200 home-delivery units.
The pitch is being overseen by Pizza Hut director of retail marketing Simon Wallis, who is considering a number of agencies, including incumbent Minerva.
Minerva secured Pizza Hut's point-of-sale business, which includes window displays, menus and placemats, in March 2000. The agency, formerly known as AMV Advance, was handed responsibility for all Pizza Hut promotions and tactical assignments, including a strategy for targeting children. Minerva also handles all local marketing for its outlets.
Last month Pizza Hut extended its television marketing strategy by snaring the high-profile sponsorship of The Simpsons following the series' move from BBC Two to Channel 4. The value of the 12-month deal has not been revealed, but it is thought to be substantial. Channel 4 reportedly paid $1m (?540,000) an episode for the terrestrial rights.
Pizza Hut is the second pizza brand to tie up with The Simpsons; Domino's sponsors the show on Sky One.
Pizza Hut is jointly owned by leisure giant Whitbread and US restaurants business Yum! Brands. In September it was reported that Whitbread was considering disposing of its high-street restaurants, including Pizza Hut. In September it said its high-street brands had 'broadly maintained their position', with like-for-like sales growth of 3%, compared with 3.1% in the past financial year.
Last month Pizza Hut became the latest food brand to add a healthy option to its menu with a line of lower-fat pizzas branded Hi-Light (Marketing, 13 October).
PHOTO (COLOR): Pizza Hut: seeking to boost customer numbers at its restaurants
~~~~~~~~
By Mark Sweney

News Spots: Pizza Hut

2006-02-16T14:19:00.000-06:00

Omnicom Group's BBDO, New York, recruited comedian Jerry Stiller for the latest installment in the "Feed me" campaign for Yum Brands'
Pizza Hut chain. Art director: Tony LaMonte. Copywriters: Mike Towell, Alec Brownstein, Tom Troncoso.

Pizza Hut to sponsor The Simpsons on C4

2006-02-16T14:18:00.000-06:00

Pizza Hut has signed up for the high-profile sponsorship of The Simpsons, which makes its Channel 4 debut next Friday night.
The sponsorship deal is one of Channel 4's biggest; The Simpsons is a key part of its autumn schedule and the channel will need to recoup the reported $1 million it paid for the terrestrial rights for each episode.
It has not been revealed how much Pizza Hut paid for the 12-month deal, which was negotiated by Starcom Motive and Channel 4. Pizza Hut becomes the second pizza company to be associated with the series and its greedy protagonist Homer Simpson; on Sky One, Domino's Pizzais the sponsor of the show.
Channel 4 has scheduled its hack-catalogue of The Simpsons in the 6pm slot from Sunday to Friday. However, it will broadcast the newest series, series 12, at 9pm on Fridays. This 9pm slot had caused a ratings headache for Channel 4 since Friends, which had occupied the space for a decade, ended last year.
Channel 4 beat five to the terrestrial rights of The Simpsons. The BBC also dropped out when the bidding got too high. Channel 4's in-house agency, 4 Creative, will create the Pizza Hut sponsorship break bumpers.
PHOTO (COLOR): The Simpsons... appearing on primetime terrestrial TV for the first time on Channel 4

CREATIVE SHOWCASE: THE BEST WORK YOU MAY NEVER SEE Cut + Run, Vendetta Post Climb Up to Pizza Hut

2006-02-16T14:17:00.000-06:00

CLIENT Pizza Hut/4forALL Pizza.
PRODUCTION CO. Saville Productions, Beverly Hills, Calif.
Simon West, director; Pete Menzies, DP; Michelle Travinski, executive producer; Dawn Fanning, producer. Shot on location in Los Angeles.
Santiago Inc., New York.
Santiago Suarez, director/DP (tabletop/food); Joan Vitaliano, executive producer; Ron Marrazzo, producer. Shot on stage at Santiago Inc.
AGENCY BBDO New York.
Janet Lyons, executive creative director/copywriter; Chris Curry, art director; Tommy Troncoso, copywriter; Winslow Dennis, senior producer; Jim Kelly, assistant producer; Karen Jean, music producer.
EDITORIAL Cut + Run Los Angeles, Santa Monica.
TG Herrington, editor; Alex Dondero, assistant editor; Christie Cash, executive producer.
POST Cut + Run.
Mitch Gardiner, online editor.
The Syndicate, Santa Monica.
Beau Leon, colorist.
VISUAL EFFECTS Vendetta Post, Santa Monica.
Crawford Reilly and Pete Mayor, visual effects artists; Kevin McDonald, visual effects assistant; Sandy Beladino, executive producer.
Andy Atkins, Ventura, Calif.
Andy Atkins, digital matte paintings.
Barbed Wire FX, Santa Monica.
Avi Das, CG supervisor.
AUDIO POST Lime Studios, Santa Monica.
Rohan Young, mixer; Jessie Stern, assistant mixer.
MUSIC Crushing Music, New York.
Alfred Hochstrasser, composer.
SOUND DESIGN Mo-phonics, Venice, Calif.
Zach Corbel, sound designer; Michael Frick, executive producer.
THE SPOT Miss Piggy of the Muppets stars in "Rushmore," which promotes Pizza Hut's 4forALL pizza. The commercial opens with the four presidents of Mount Rushmore — George Washington, Thomas Jefferson, Theodore Roosevelt and Abraham Lincoln — arguing over pizza toppings. Suddenly, Miss Piggy — clad in rock climbing gear — slides down in front of the monument in an attempt to get their attention. When that fails, she tries to politely interrupt them with some "excuse me's." Finally she pulls out a bullhorn and gets their attention, pointing out that they can each get their own toppings with Pizza Hut's 4forALL pizza. After product footage is shown, Jefferson asks Miss Piggy how they can repay her. The next shot shows Miss Piggy as the fifth face on Mount Rushmore. "Well this is a start," she says. The spot ends with Miss Piggy and the Pizza Hut logo, and the tagline, "Gather round the good stuff!" Spot broke in September.

Branding News Pizza Hut to roll out reduced-fat range

2006-02-16T14:16:00.000-06:00

Pizza Hut is the latest fastfood chain to introduce a healthy option to its menu, with a line of lower-fat pizzas branded Hi-Light.
The range is being positioned as a sub-brand alongside The Edge and Stuffed Crust. It will be available in all Pizza Hut restaurants from this month and will also be part of the chain's takeaway menu.
Hi-Light pizzas contain 33% less fat than the equivalent standard Pizza Hut offering. Options include Chicken, Ham and Veggie. The pizzas are made using a thin-and-crispy base, low-fat toppings and half the regular amount of cheese.
The range will be priced ?5.49 for an individual size pizza, ?7.99 for a medium and ?9.99 for a large.
Pizza Hut marketing director Martin Pugh said the launch of Hi-Light is intended to meet a growing demand for healthier versions of customers' favourite pizzas.
'Hi-Light has been created after a year of intensive research and development dedicated to creating contemporary lighter products without compromising taste and quality,' he said, adding that the range has been developed in consultation with a nutritionist.
Rival fast-food chains McDonald's and Burger King have both introduced healthier options onto their menus this year amid criticism of the fast-food industry's role in the obesity crisis.
A Pizza Hut spokesman insisted Hi-Light is being launched purely in response to consumer demand and not as a result of government pressure.
Pizza Hut has no immediate plans to support the range with marketing activity.
PHOTO (COLOR): Pizza Hut: has worked with a nutritionist to develop low-fat pizzas
~~~~~~~~
By Emily Rogers

NEWS SPOTS PIZZA HUT

2006-02-16T14:15:00.000-06:00

Miss Piggy interacts with another national monument-Mount Rushmore-in a new spot for Yum! Brands Pizza Hut. Ads, from BBDO, New York, promote the chain's 4forAll pizza. Art director: Chris Curry. Copywriter: Tommy Troncoso.

NEWS PIZZA HUT SHIFTS ?11M MEDIA ACCOUNT TO STARCOM

2006-02-16T13:47:00.001-06:00

Pizza Hut has moved its ?11m media planning and buying business into Starcom Motive, after a pitch against MindShare.
PHD resigned the account in April after the pizza chain announced its second review in as many years. The latest review, conducted by retail marketing director Simon Wallis, came after his predecessor, James O'Reilly, left to become vice-president for marketing at sister company KFC in the US. Wallis replaced O'Reilly at the end of last year.
PHD was unhappy at being asked to repitch just two years after it had defended the business in a pitch against Zenith Media. The media agency claimed Pizza Hut had not encouraged a client/agency relationship based on an equal footing.
This week, Ofcom ruled that Pizza Hut had misled the public with a TV ad claiming to offer free pizzas if they were not delivered hot and on time. The ad omitted to say that the guarantee was limited to one pizza per order and had to be accompanied by a new order costing at least ?7.99.
Ofcom ordered Pizza Hut and its ad agency, Abbott Mead Vickers BBDO, not to repeat the ad.
PHOTO (COLOR): Pizza Hut: PHD resigned business
~~~~~~~~
By Colin Grimshaw

PIZZA HUT INC. THRU THE SHARPER IMAGE

2006-02-16T13:47:00.000-06:00

p-s directory
PIZZA HUT INC. 14841 Dallas Pkwy.
Dallas, TX 75240
Tel: 972-338-7700, Fax: 972-338-7767
Tell Free: 877-302-7777
http://www.pizzahut.com/
PRIVACASH One Seagate, Ste. 1815
Toledo, OH 43604
Tel: 419-255-2322 x309, Fax: 419-255-2327
http://www.privacash.com/
PROM02000 Awards Rewards & Incentives
Chatfield House, 14 Water St.
Northwich, CW9 5HP
Tel: + 44 160646899
http://www.promo2000.co.uk/
Q QUALITY INCENTIVES 4690 Hurgerford Rd.
Memphis, TN 38118
Tel: 800-621-9745, Fax: 901-367-8266
http://www.goqic.com/
R R&D GROUP INTL, INC. BERGHOFF USA INC. PO Box 858
Elfers, FL 34680
Tel: 727-375 7523 x.300, Fax: 727-375-8354
http://www.berghoff-usa.com/
REGAL ENTERTAINMENT GROUP 9110 F. Nichols Ave., Ste. 200
Centennial, CO 80112
Tel: 800-784-8477, Fax: 303-792-8666
http://www.regmovies.com/
RELIABLE RACING SUPPLY INC. 643 Upper Glen St.
Queensbury, NY 12804
Tel: 800-223-4448
Fax: 800-585-4443
http://www.reliable
RELAIS & CHATEAUX 11 F. 44th St., Ste. 707
New York, NV 10017
Tel: 212-856-0115
Fax: 212-856-0193
http://www.relaischateaux.com/
REWARDS HQ COM 28 Rogers St.
Marietta, GA 30060
Tel. 770-514-7757, Fax: 770-514-1618
http://www.rewardshq.com/
RICHARD PETTY DRIVING EXPERIENCE 6975 Speedway Blvd., Ste. D-106
Las Vegas, NV 89115
Tel: 702-643-4343, Fax: 702-644-4343
http://www.1800bepetty.com/
RICH'S LAZARUS & GOLDSMITH'S GIFT CARDS CGI/Consolidated Group Inc.
650 E. Devon Ave., Ste. 120
Itasca, IL 60143
Tel: 800-646-1919, Fax: 630-285-1511
http://www.cginc.net/
ROSS-SIMONS 9 Ross-Simons Dr.
Cranston, RI 02920
Tel: 401-463-3100
Fax: 401-463-6710
http://www.ross-simons.com/
RUTH'S CHRIS STEAK HOUSE 3321 Hessmer Ave.
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BRANDING PIZZA HUT POLISHES UP WITH STORE MAKEOVER

2006-02-16T13:45:00.000-06:00

Dateline: HONG KONG:
Following the revamp of rival fastfood chains like local brand Fairwood and international giant McDonald's, Pizza Hut has also given its brand a polish, with the makeover of all its outlets.
Pizza Hut aims to create a modern, restaurant-like image. The pizza giant has opened a flagship outlet in Causeway Bay — a prime shopping and dining area in Hong Kong — as the kick-off to the re-branding campaign.
Other branches, including one in Macau, have also been renovated with new flooring, warm, orange-toned decor, comfortable seats, tables, and stylish decoration, all designed by the brand's in-house design team.
The menu selection has also been updated, with additional food categories such as fried rice and spaghetti. The renowned self-service salad bar has also been withdrawn, in order to make Pizza Hut appear more of a 'sit-down' restaurant, instead of a fastfood dining destination.
Pizza Hut's advertising agency, Grey Global Group, has created print ads to support the revamp. Simon Fung, executive creative director of Grey, said it was a market trend to rework a brand's image.
'It's time to provide an upgraded experience and a modern, new look for customers,' Fung said.
In addition, he said that as the brand had been in the market for a number of years, it wanted an overall improvement — including in the areas of food quality and customer service.
Fung said the advertising strategy would also be gradually modified, from a 'hip and sometimes crazy' style to a 'decent but youthful' style.
Starting with a product promotion campaign which was launched few months ago, the style and art direction of the brand's advertisements have been changed to fit the upcoming relaunch announcement.
'The brand's 'sharing and fun' theme will still be kept, though,' Fung added.
Pizza Hut will continue to aim for the brand's original target audience, ranging from families to youngsters and students. Fung said the brand did not want to pinpoint a particular type of audience even though its image had been modified to a more high-end style.
McDonald's recently began a revamp of its outlets in Hong Kong as well, with more use of pale wood accents and pastel colours.
PHOTO (COLOR): Pizza hut...still aiming for original core audience in its revamp mode
~~~~~~~~
By Janis Tse

PHD HITS OUT AS PIZZA HUT CALLS ?11M MEDIA PITCH

2006-02-16T13:44:00.000-06:00

PHD has resigned its pounds 11 million Pizza Hut media planning and buying account, after the fast-food restaurant chain announced it intended to review the business for the second time in as many years.
The review follows the departure of the Pizza Hut marketing director, James O'Reilly, who was promoted to vice-president for marketing at KFC USA at the end of last year. Simon Wallace, formerly the marketing manager at Pizza Hut's sister company KFC, replaced him.
Pizza Hut has instructed the media auditor Billetts to draw up a shortlist of agencies to pitch for the account.
PHD is unhappy that Wallace has asked the agency to defend the business so soon after its most recent review; in 2002 it was forced to defend the account from Zenith Media.
Kathleen Saxton, the client development director at PHD, added: 'Agencies often talk about standing by our principles with clients and building a partnership based on an equal footing. Sadly, of late this has not been the case with Pizza Hut.
'While it is not a decision any agency ever takes lightly, we feel it is in the interest of everyone at PHD and the agency community at large to make a positive and public stand.'
Wallace did not return Campaign's phone calls.
Pizza Hut is a joint venture between Yum! Brands and Whitbread. It has recently embarked on a refurbishment programme to improve its image with customers.
The departure of the Pizza Hut account follows a disappointing recent new-business performance from PHD. Earlier this month it lost the pounds 33 million planning account for O2 to ZenithOptimedia and it is currently defending its hold on the easyCar business.
PHOTO (COLOR): Pizza Hut...reviewing again

TOP SPOTS AD AGE/IAG'S QUARTERLY RECALL REPORT PIZZA HUT '4 FOR ALL' LEADS RECALL

2006-02-16T13:43:00.000-06:00

The 15-second version of a Pizza Hut "4 for All" spot, which launched during the Super Bowl Pre-Game, was the most-recalled TV ad airing during the first quarter of 2004, according the latest Advertising Age/IAG Quarterly Ad Performance Report. Recall for the Pizza Hut ad-which was 2.3 times that of the average new ad-was followed closely by the 15-second version of a long-running Breathe Right spot and an installment from DirecTV's "Fan Letter" campaign.
Meanwhile, nearly all of the Top 20 best-liked spots of the quarter launched during Super Bowl Sunday or the Academy Awards. With more than 2.1 times the average likability level, Chevrolet's "Soap" spot rated highest, followed by several other humorous Big Game executions for Budweiser, Bud Light and Lay's. Representing the high-scoring Oscar campaign debuts were American Express' "Caddyshack" parody spot and MasterCard's "Badger the Dog" series.
In the automotive sector, General Motors' "Hot Button Giveaway" promotional campaign placed in four of the Top 10 slots. Also earning high recall marks were the cliffhanger-style Mitsubishi Galant ad and a lighthearted spot supporting the launch of Chevrolet's midsize pickup, the Colorado.
Two spots for AT&T Wireless-running exclusively during Fox's "American Idol" and featuring the show's host-landed in the wireless category's Top 10. Other well-remembered work included camera-phone and promotional spots for Sprint PCS, along with two Verizon Wireless ads touting its new "In-Network calling" plans.
Burger King secured the largest share of the Restaurant Top 10, with five of the sector's top-recalled ads-most of which are a part of its new "Have It Your Way" effort. Meanwhile, a pair of spots each from Pizza Hut and Domino's also placed among the fast-food recall leaders last quarter.
Finally, two spots in Febreze's latest ad push and celebrity-driven work from Crest and Pantene have proved to cut through the consumer-products clutter at the greatest rate, while competing erectile-dysfunction brands Cialis and Levitra ranked No. 1 and 2 in ad recall in the prescription-drugs category.

NEWS NEW PRODUCTS PIZZA HUT, SIMPSON WING IT

2006-02-16T13:41:00.000-06:00

Singer does dumb blonde thing for buffalo wing pizza rollout.
Pop ICON-OF-THE-MOMENT Jessica Simpson will reprise her role in Pizza Hut commercials to tout a new buffalo chicken pizza topping.
Simpson will poke fun at her "I don't eat buffalo" comment she made when offered a buffalo wing on MTV's Newlyweds: Nick and Jessica. The 3D-second ad, via BBDO, New York, features Simpson's father and sister enjoying the new pie with their perpetually confused family member. The ad will run through the end of May.
The product rollout marks the first time Pizza Hut will offer its "low-risk" price point nationally. Consumers can buy a medium buffalo chicken pizza at $4.99 with the purchase of a large pizza at a regular price. "It takes the risk out of trying something new. Consumers can take a test drive," said Julie Hildebrand, a rep for the Dallas-based chain.
The boneless strips of white meat chicken marinated in buffalo wing sauce with a side of ranch dipping sauce are also a choice for the chain's new "4forAll." The four square pies in a large pizza box retailing for $11.99 boosted same store sales 9% in February, per Technomic, Chicago. Simpson appeared in an ad for the product's launch.
Pizza Hut welcomes the boost as sales slid 1.4% last year. Spending was not revealed. The chain spent $18 million during the same period last year and $171 million for the entire year, per TNS/CMR.
~~~~~~~~
By Kenneth Hein

GREATER CHINA PIZZA HUT UNVEILS OFF-THE-WALL SELL FOR CHICKEN DISH

2006-02-16T13:40:00.000-06:00

Dateline: TAIPEI:
Fast food chain Pizza Hut has unveiled an off-the-wall, humorous print blitz to promote its new Thai-flavoured chicken legs dish.
Pizza Hut introduced the new side dish after the launch of similar products by rivals in the Taiwan market.
The J. Walter Thompson-developed print campaign targets young adults. Michael Dee, creative director at JWT Taipei, said: 'We wanted to communicate to our target that (the dish) has a strong flavour. In the Taiwan market, the chicken category is very important for all fast-food restaurants. Since there are so many spicy food ads in the Taiwanese market, we tried to create a truly distinctive campaign to stand out in this crowded market.'
The campaign communicates the strength of the flavour and illustrates how — long after the product has been eaten — the taste remains and draws other people to involuntarily do crazy things. The ads feature people in different settings displaying 'crazy' behaviour such as licking elevator buttons, poles on trains and bowling balls.
'Because it's a finger food, we wanted to focus on the strong flavour staying on the eater's fingers. The flavour remaining will spread to whatever the fingers touch and draw other people to do crazy things.'
PHOTO (COLOR): Pizza hut...the clavor stays on
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By Amy White

CREATIVE SHOWCASE: SPOTLIGHT THE WELL HAS FOUR TOPPINGS FOR PIZZA HUT

2006-02-16T13:39:00.001-06:00

CLIENT Pizza Hut/4forAll Pizza.
PRODUCTION CO. Reactor Films, bicoastal.
Steve Chase, director; Barry Peterson, DP; Michael Romersa, executive producer; Buzzy Cancilla, producer. Shot at Universal Studios, Universal City, Calif.
Santiago Inc., New York.
Santiago Suarez, director/DP (tabletop); Joan Vitaliano, executive producer; Ron Marrazzo, line producer. Shot at Santiago Studios, New York.
AGENCY BBDO New York. Ted Sann, chief creative officer; Janet Lyons, senior creative director/copywriter; Mike Towell, copywriter; Chris Curry, art director; Brian Mitchell, executive producer; Rani Vaz, director music/radio production.
EDITORIAL The Well, New York.
Gary Hernandez, editor; Holly Ludvigsen, assistant editor; Suzanne Rieger, executive producer.
POST Buzz, New York.
Peter Flack, online editor.
Nice Shoes, New York.
Chris Ryan, colorist.
VISUAL EFFECTS Quiet Man, New York.
Steve Koenig and Chris Coleman, Flame artists; Jason Sienkwicz, Mac artist; Dave Moore, producer.
AUDIO POST Buzz.
Michael Marinelli, mixer.
MUSIC Crushing Music, New York.
Alfred Hochstrasser, composer/arranger; Mary Wood, producer.
THE SPOT "Step Away" (:30) features Jessica Simpson putting an end to a Muppets brawl over pizza toppings by introducing the puppets to Pizza Hut's new 4forAll Pizza.
Spot broke Feb. 1.
PHOTO (COLOR): Pizza Hut's "Step Away."

ADWATCH: SINGAPORE PIZZA HUT CHALLENGES MCDONALD'S DESPITE FAR LOWER SPEND

2006-02-16T13:39:00.000-06:00

Fast-food restaurants vied for attention at the top of Singapore's latest TV recall chart.
Pizza Hut has closed in on McDonald's in the TV recall chart in Singapore, with both scoring 93 points to share the number one spot.
Pizza Hut's sister fastfood company KFC took third place with 90 points.
Pizza Hut and KFC marketing manager Lynette Lee said the two could not compete with McDonald's when it came to advertising budgets, but strategy has helped its commercials make an impression with TV audiences.
'Pizza Hut does not have the kind of money McDonald's has. In fact, the Adex report shows that Pizza Hut spent less than a fifth of what McDonald's did in September,' Lee said.
'The ads were created based on consumer insights that are relevant and real. I think the relevancy of the TVC makes it highly memorable to our customers.'
Meanwhile, furniture and appliances retailer Courts took the fourth place in the chart, with its 'Credit revolution' TVC, which was attributed to the pure simplicity and focus in the message, as well as the spot's clean lines and sleek 3D-animation.
'Creativity can be the most pragmatic tool a businessman can employ. Courts understood what retail creativity is all about — keep it simple, keep it sweet, keep the sales ringing up,' said David Tang, managing director of DDB, which created the Courts TVC.
The newly-launched Visa Mini card took fifth spot.
Shailesh Baidwan, Visa International Asia-Pacific's director for premium products, marketing and product sales, said: 'The campaign created significant consumer awareness of Visa Mini's innovative product aspects and complemented the issuing banks' marketing and sales promotional activities.'
PHOTO (COLOR): Courts, Dove, Health Promotion Board...all these commercials made an impression with Singapore's television audiences
~~~~~~~~
By Tsang Shuk Wa

PIZZA HUT UK BOSS EXITS TO SENIOR KFC ROLE IN US

2006-02-16T13:38:00.000-06:00

Pizza Hut's UK marketing director, James O'Reilly, is leaving to take up the role of vice-president, marketing, at KFC USA, leaving the restaurant chain searching for a top marketer.
O'Reilly joins fellow Yum! Restaurants chain KFC on December 1. He has been in his current role for three years, prior to which he was marketing director for the Caribbean and Latin America at Tricon Restaurants International, the former name for Yum! Restaurants.
During his time at Pizza Hut, O'Reilly has overseen product innovations such as the launch of the four-flavoured Quad pizza and the larger-sized Big New Yorker, designed for sharing, as well technological developments such as the company's 'oven-fresh' delivery system for takeaway pizzas.
He has also handled advertising campaigns through Abbott Mead Vickers BBDO, the most recent promoting a film-related tie-up with UGC and Cine UK.
O'Reilly signed off Pizza Hut's 2004 marketing plan prior to his departure. It is understood that the brand will continue its strategy of targeting families next year.
The chain hopes to announce a successor to O'Reilly in the new year. In the meantime, the marketing division will be overseen by Pizza Hut's chief executive, John Derkach, who has extensive marketing experience, having worked at PepsiCo and Procter & Gamble.
He will be assisted by the newly appointed director of retail marketing at Pizza Hut, Simon Wallis, who joins from KFC UK, where he was brand director (Marketing, November 6). Wallis is due to join the company at the start of December, coinciding with O'Reilly's departure.
Pizza Hut, which is jointly owned by Whitbread Restaurants and Yum! Restaurants, in the UK, is the pizza restaurant market leader and has more than 500 outlets, including 350 dine-in restaurants and 170 home delivery outlets.
It spent more than ?10m on advertising in the year to June 2003, according to Nielsen Media Research.
PHOTO (COLOR): Pizza Hut: Will continue strategy of targeting families in 2004 activity
~~~~~~~~
By Emily Rogers

PIZZA HUT HANDS RETAIL MARKETING REINS TO KFC MAN

2006-02-16T13:37:00.000-06:00

Pizza Hut has appointed Simon Wallis director of retail marketing, replacing Lisken Lawler, who is returning to Pizza Hut US after a three-year spell in the UK.
Wallis, who will report to Pizza Hut marketing director James O'Reilly, joins from sister company KFC, where he is brand director. He is due to move at the start of December. Both brands are owned by Yum! Restaurants.
Wallis will be replaced at KFC by Matthew Critchley, who joins from ad agency Bates UK in mid-November.
Wallis will be responsible for planning and implementing Pizza Hut's national retail marketing activity. Pizza Hut spent more than pounds 10m on advertising in the year to June 2003, according to Nielsen Media Research.
Its latest advertising campaign, through Abbott Mead Vickers BBDO, broke on TV in September, promoting the brand's two-month partnership with UCG and Cine UK.
The link-up, which was claimed to be the biggest-ever cinema and restaurant promotion, saw cinema tickets being given away free with meal deals.
PHOTO (COLOR): Pizza Hut: cinema ticket giveaway

PIZZA HUT ADDS VIDEOS, LOYALTY CARDS TO RECIPE

2006-02-16T13:36:00.000-06:00

National chain seeks to spice up demand by rewarding consumers.
IN AN EFFORT TO EXPAND its customer base by thinking out of the pizza box, Pizza Hut this week will debut its inaugural consumer loyalty program, dubbed VIP, and also is testing an offer in November where consumers can get a free video with the purchase of a pizza.
In the VIP effort--which stands for "Very Into Pizza"--consumers at corporate locations in 23 markets pay $14.99 to join for a year. For signing up they receive a large pizza. Then for every two carry-out or home delivery orders of a minimum of $10 or more, consumers receive a free large pizza (up to two free pizzas per month). Every month participants will get one order of free breadsticks or baked cinnamon sticks just for participating. Free food is redeemed via coupons that are automatically mailed to qualifying consumers.
Depending on the response, franchisees likely will be invited to join the program next year. Pizza Hut CMO Tom James said the program is designed to goose sales. "We're testing a number of different offers."
Support likely will include TV and radio tags. BBDO, New York, is agency for the Hut. Hawkeye FFWD, New York, is the promotional agency.
For the video test, Pizza Hut is giving customers a free InDemand video with the purchase of a large pizza. The promotion will run in Minneapolis in November; if successful, it is expected to launch nationwide in 2004. However, James would not confirm the test.
The effort is a variation of an earlier DVD promotion Pizza Hut used to launch its family-oriented "Gather round the good stuff" campaign (Brandweek, June 16). The video promo will dangle more recent films, such as Anger Management, The Italian Job and Matrix Reloaded.
Last week, the chain also launched the Pizza Hut Card, a stored value debit card that comes in increments of $5 (up to $100). The card is positioned as a gift for the holiday season and beyond.
Payless Set to Roar for Lion King PAYLESS SHOESOURCE has hitched its 5,000 stores to the highly anticipated special-edition DVD release of Disney's The Lion King, which hits retail Oct. 7.
Payless has an exclusive deal, through year's end, to create a line of family-friendly footwear featuring Simba, Nala, King Mufasa, Pumbaa and Timon. Also, Payless will for the first time sell movies in its stores.
A TV spot, via Barkley Evergreen & Partners, Kansas City, Mo., will break on Sept. 29 positioning Payless as the exclusive carrier of Lion King footwear. Star Jones continues her role as spokesperson, here promoting the retailer as a family destination.
With a mail-in rebate, consumers will pay only $10 for the DVD and $7 for the VHS with the purchase of Lion King shoes. Payless expects to sell hundreds of thousands of products and more than 100,000 movies during the promotion.
Payless did not reveal its spend. The retailer spent $49.4 million on media in 2002 and $26 million for the first six months of this year, per TNS/CMR.
For The Lion King, Disney has promised its largest marketing spend ever behind a DVD launch, upward of $200 million, with partners that also include Hasbro, Kellogg and Toys "R" Us (Brandweek, March 3). It includes new scenes and a new Elton John song that was not in the original 10 years ago.
--Kenneth Hein
~~~~~~~~
By Kenneth Hein

NEWS PIZZA HUT LEADS WITH SMOKING BAN

2006-02-16T13:35:00.001-06:00

Pizza Hut has become the first restaurant chain to ban smoking, which will apply to all its 350 sites nationwide. The decision to ban smoking in the family-oriented restaurants was made in response to customer feedback.
It also follows the launch of a Government health report recommending a total ban on smoking in public places, to protect people from the dangers of so-called second-hand smoke.
Operations director Brian Rimmer said: "Pizza Hut strongly believes that families should be able to take time to have a leisurely meal in a restaurant without exposing their children to other people's smoke. It is equally important that our staff can work in a smoke-free environment."
Pizza Hut's move was welcomed by pressure groups campaigning both for and against a smoking ban in public places.
Amanda Sandford, research manager at anti-smoking group Ash, was delighted by the initiative.
She said: "I think the key thing is that it has made perfect business sense. It knocks on the head the bogus research that says a ban will result in job losses and a loss of trade."
Nick Bish, chairman of the Charter Group, which campaigns for self-regulation regarding public smoking in the industry, said the decision would do nothing but good for his campaign.
He said: "With solutions like this, the Government should be more relaxed to deliver a self-regulated answer to this issue."

NEWS SPOTS PIZZA HUT

2006-02-16T13:35:00.000-06:00

What's better than pizza and a movie? PIZZA HUT kicks off its latest national promotion this week with its DVD-with-purchase offer. Consumers who order any large pizza at the regular price receive one of four MGM Home Entertainment movies. BBDO, New York, handles. Chief creative officer: Ted Sann. Copywriter: Justin Racz. Executive producer: Brian Mitchell.

PIZZA HUT DRAWS A QUEEN FOR FAMILY-FOCUSED PUSH

2006-02-16T13:34:00.000-06:00

Effort includes new tag, DVD giveaway, Martin Mull cameo.
QUEEN LATIFAH WILL likely be the voice of Pizza Hut's new family-focused brand positioning, which will debut in a $300 million campaign breaking this month. However, the contract hadn't been finalized at press time.
Tom James, new CMO at Pizza Hut, said the star will help the brand stake out a hip, family positioning. "When you mention family, people often shudder and think of Donna Reed. With Queen Latifah and the music we use, we're making it more cool and contemporary."
James likened a new tag, "Gather 'round the good stuff" to Miller Time. "We're taking the emotional high ground of the category," he said." It's about sharing something with the people that are important to you," said James, who came from ad agency Avrett, Free & Ginsberg, New York.
To kick off this new direction, the chain of 7,000-plus stores is putting together a first of its kind promotion offering a free DVD with the order of a large pizza at a regular price, either in-store or at home.
The debut ad, via BBDO, New York, will show families enjoying pizza and features an appearance by Martin Mull. The spot has a teen Pizza Hut delivery guy giving a short review of each movie as he delivers the pizzas. "Mr. Mom with Martin Mull. Hilarious as the bumbling, evil boss." Mull replies: "Gee I thought I was pretty nice."
The giveaways include four popular MGM titles: All Dogs Go to Heaven, Bill and Ted's Bogus Journey, Honeymoon in Vegas and Mr. Mom. The promo ends Aug. 2.
The DVD promotion was the No. 1 family sharing idea, per Pizza Hut research. "It's something of a catalyst for family night over and over again," said Cindy Davis, now vp-national marketing after coming over from BDDO where she worked on the account for 13 months. She replaces Cindy Hennessey.
PHOTO (COLOR): Dinner and a movie: Pizza Hut effort dangles free DVD titles.
~~~~~~~~
By Kenneth Hein

NEW PIZZA HUT ADS PUT FOCUS ON FAMILY

2006-02-16T13:33:00.000-06:00

As sales fall off, chain eyes tag 'Gather 'round the good stuff'
PIZZA HUT WANTS families to "gather `round" the pizza.
Fronted by a new management team, the Yum Brands chain has plotted a repositioning and told franchisees at a meeting last month it will again turn to families to drive sales. "We're going to change the focus from spike-haired echo boomers to pressure-cooker moms," said one attendee.
The chain is considering the tagline, "Gather `Round the Good Stuff," which implies quality food and togetherness, to break later this month. A Pizza Hut spokeswoman confirmed that the company presented the new strategy and is considering "a number of taglines," but declined to comment further. Omnicom Group's BBDO Worldwide, New York, Pizza Hut's agency of record, referred all queries to Pizza Hut.
BUDGET BOOST The strategy shift comes as sales totter for Pizza Hut. Yum CEO David Novak in February ordered an ad overhaul and bigger budget for the chain. Spending on Pizza Hut, which saw same-store sales fall 4% in the quarter ended March 22, will jump to $300 million.
The recent meeting marked the franchisee debut for President-Chief Concept Officer Peter Hearl and Chief Marketing Officer Tom James, who oversaw new products and marketing concepts. While the recent addition of the P'Zone calzone to the permanent menu offers a glimpse at the family-friendly strategy, the bigger splash is expected next year when Pizza Hut launches its Harvest Pizza during the Super Bowl, said executives familiar with the situation. The chain also is experimenting with a "Four4All" pizza, which allows for four different topping combinations on one pie.
ENCOURAGED Although still early in the process, franchisees are encouraged by the new management team and its plans. That bodes well for BBDO, which handles Pizza Hut and KFC. The Yum account has been viewed as vulnerable at BBDO amid the recent retirement of former Chairman Phil Dusenberry and inconsistent results.
"BBDO is our agency of record. Nothing has changed," said a Pizza Hut spokeswoman.
Moreover, eyebrows were raised when Omnicom sibling Zimmerman Partners Advertising, Fort Lauderdale, Fla., won the $45 million account of rival Papa John's International, although a Pizza Hut spokeswoman denied it was an issue. Pizza Hut has tussled in court with Papa John's and lost a contentious false-advertising lawsuit over Papa John's "Better Ingredients, Better Pizza" tagline.
PHOTO (COLOR): NEW FOCUS: Pizza Hut will focus on families in ads as part of its new strategy to boost sales.
PHOTO (COLOR)
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By Kate Macarthur

PIZZA HUT INTRODUCES UPMARKET FARE

2006-02-16T13:32:00.000-06:00

Pizza Hut is cultivating an upmarket image with the launch of a dozen refurbished London restaurants offering a host of menu items designed to appeal to a new generation.
The company, whose UK operation is a joint venture between Yum! Brands and Whitbread Group , is planning a soft launch for the revamped sites, half of which are eat-in restaurants and the other half home delivery outlets.
All 12 are in the Uxbridge, Ealing and Wembley areas of London.
The outlets are being refurbished in line with Pizza Hut's latest store designs, which feature more modern and sophisticated decor than traditional Pizza Hut restaurants.
Items including goat's cheese bruschetta and nachos, which have not previously appeared on the Pizza Hut menu, will form a critical element of the food offering as the company attempts to broaden its appeal beyond pizza and pasta dishes.
The project forms part of Pizza Hut's UK investment programme, which involves the regular addition of new dishes, supported by marketing campaigns, to highlight the diversity of its menu.
"We trial products in locations around the world on an ongoing basis and for reasons of commercial confidentiality we neither confirm nor deny the specifics," said a Pizza Hut UK spokesman.
Other restaurant chains, including McDonald's, are undertaking similar initiatives to compete for the custom of increasingly health-conscious consumers.
Last month, Pizza Hut announced that it would open 75 restaurants this year to add to the 525 outlets already in operation.
More than 400 of these are full-service dine-in restaurants, while 116 are home delivery outlets. The expansion will create 3500 jobs this year. Pizza Hut is the UK leader in the pizza diner market.
Brand health check, page 13.
PHOTO (COLOR): Pizza Hut: will open revamped outlets in Uxbridge, Ealing and Wembley
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By Mark Kleinman

DIAGNOSIS PIZZA HUT

2006-02-16T13:31:00.000-06:00

It's now more than five years since PepsiCo spun off its restaurant businesses and Tricon was born, embracing Pizza Hut, Taco Bell and KFC, making up the world's biggest restaurant group.
The company's UK arm is a joint venture between Yum! Brands and the Whitbread Group. This gave Pizza Hut the opportunity of finally trying to get to grips with its service issues and trying to match the consistency of product of Pizza Express.
During the 90s, Pizza Hut restaurants had big service issues; it has a high staff attrition rate and this keeps training standards low. This meant staff did not know how to put the customer first. The cleanliness of the restaurants was also wanting. It didn't match the welcoming, modern and clean restaurants of the pizza competition, let alone the impeccable standards of establishments such as McDonald's.
In terms of product, consistency of delivery has always been, and remains, a challenge for Pizza Hut. Product innovation has been slow and the move toward more upmarket products should be welcomed. The challenge will come with the eating experience in the restaurant: operations as opposed to marketing. I've never really twigged what kind of a restaurant Pizza Hut is. And with the latest test, an attempt to trial 'upmarket' offerings, it seems its schizophrenia knows no bounds.
Last I heard, Pizza Hut felt its heartland was best stretched by going head to head with the fast food market and offering food to go at railway stations and shopping centres. As an extension, this appears to make sense and it could also fit the spiritual home of pizza — in Italy, great pizza can often be bought by the roadside. It also seems close to what Pizza Hut stands for.
I've always regarded Pizza Hut as a mass-market, good value, and 'you know what you get' brand. This appears to do the business for it Whenever I walk past it always seems full — full of families and teenagers. A full restaurant is a successful one.
The same cannot be said of many of its competitors. Pizza Express is minimalist, which makes the restaurants look even more empty than they are. Not good for atmosphere. Bella Pasta has lost its way.
As a brand I felt that Pizza Hut's gimmicks such as Stuffed Crust and Top 'n' Roll are far closer to its core proposition.
PHOTO (COLOR): SAMANTHA SMITH
PHOTO (COLOR): ALAN SMITH
TREATMENT
Improve delivery in the restaurant. Operations and marketing need to work together to better motivate staff. Training needs to be reviewed in terms of innovation and creativity. Improve the usual manager of the month schemes. The expansion programme needs to focus on training and retaining good staff: improving the management training programme. Pizza Hut should stick to its knitting and continue developing gimmicks such as Top 'n' Roll. Back these with powerful advertising and promotions to give customers a reason to come in. Trying to move into more upmarket offerings just doesn't feel right. Continue to innovate. There's only one thing worse than trialling products that fail, and that's not trialling products at all. PHOTO (COLOR): Pizza Hut: must continue with NPD

BRAND HEALTH CHECK PIZZA HUT

2006-02-16T13:30:00.000-06:00

Will 'gourmet' food be a winner for Pizza Hut?

The pizza restaurant has surprised many by trialling upmarket menu items. Ben Bold asks whether it has the right strategy to keep diners coming back for another slice.
Pizza Hut may be a pizza purist's nightmare, but its formula of consistent restaurant formats and menu gives the family crowd a prescribed eating experience, no matter which branch they stop off in.
Its marketing strategy has focused heavily on product development to keep its diners happy, but the news that it is to trial some more upmarket additions to its menu, including goat's cheese bruschetta, is a far cry from its usual NPD.
So does Pizza Hut want to reinvent itself? It hardly seems likely. The chain is booming in the UK, where it is operated as a joint venture by Yum! and Whitbread Group.
In April, it announced it is to create 3500 jobs in the UK and plans to add to its 500 branches by opening another 75 over the rest of the year.
Pizza Hut continues to attract customers in their droves. They are predominantly families and teenagers, whereas rival Pizza Express targets young couples and City folk.
So, having cornered its market, is it attempting to pull in a different type of customer? Or is it a tactic to keep existing clientele coming?
The brand is certainly no stranger to product innovation. In October last year, it launched Top 'n' Roll, a scheme allowing customers to construct their own pizzas.
The scheme intended to build on the success of its Stuffed Crust and The Quad variations. But Top 'n' Roll was pulled after a one-month trial in Edinburgh, so the future for goat's cheese's inclusion on the menu is by no means certain.
Pizza Hut has made efforts to be adventurous. However, the introduction of 'gourmet' items to the menu may be a step too far. Or is this latest product innovation going to add another page to the weighty tome of its success?
Marketing asked Samantha Smith, the former head of marketing at McDonald's and former marketing director of Burger King; and Alan Smith, chief executive of branding agency Alcone Marketing, which counts Wimpy as a client.
VITAL SIGNSNumber of outlets in UKRestaurant 2002 2001 2000 2000-2002 change (%)Pizza Hut 525 471 424 23.8Pizza Express 311[*] 272 222 40.1Domino's Pizza 281[*] 237 215 30.7Ask 145 77 65 123Source: Mintel — except for figures for 2002 (fromindividual companies) and % change calculations. [*]IncludingIreland
PHOTO (COLOR): Pizza Hut: innovations such as Oven Fresh Delivery have been a success, but Top 'n' Roll was not rolled out
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By Ben Bold

PIZZA HUT GIVES TBWA DOLLARS 7M KOREA EXPANSION WORK

2006-02-16T13:29:00.000-06:00

Pizza Hut has tapped TBWA to handle its US dollars 7 million creative and media planning and buying account in Korea. The appointment comes as the fast food operator is planning a major expansion in the country, from 271 restaurants currently to 300 by the end of the year. The agency won the account in a pitch that involved local incumbent Phoenix Communications.

THE GREAT AMERICAN COMPANY BREAKING BIG PIZZA HUT

2006-02-16T13:28:00.000-06:00

PART ONE
FOUNDED 1958 Breakthrough Once they decided to create a consistent look for all their restaurants in 1963, Dan and Frank Carney watched as Pizza Hut, their Wichita-based company, grew from 43 stores to 300 by 1967.
A piece of the pie After a neighbor read a Saturday Evening Post article about pizza's newfound popularity in New York City, the brothers borrowed $600 from their mother and set up shop in a tavern in 1958 to bring the craze to the Great Plains. By 1963, Pizza Hut had locations in states as far away as Arizona; its only threat was the California-based Shakey's. "Pizza Hut franchises came in all shapes and sizes," says Frank, now 64. "We decided to standardize our buildings, to set an image that each franchisee would have to uphold."
Upper crust The decree for uniformity in America's "neighborhood pizza place" created a flood of new franchise queries, marking the company's first big growth spurt. " Potential franchisees want to be part of a strong brand," explains Susan P. Kezios, founder of the American Franchisee Association. "When they standardized their buildings, Pizza Hut was among the first to emerge with that strong an image." In 1975, when the chain boasted 1,800 franchises, PepsiCo made its first offer to buy Pizza Hut. Frank ended up selling the company two years later for $320 million.
PHOTO (BLACK & WHITE): First Pizza Hut Wichita, KS 1958
PHOTO (COLOR): Pizza Hut
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By Maggie Overfelt

PIZZA HUT BANKS ON TRANSVESTITES' FILM APPEAL

2006-02-16T13:27:00.000-06:00

Dateline: BANGKOK:
Pizza Hut has tied up with two local film companies in a month-long, 10 million baht (US$234,000) promotion of Satree Lek II, the sequel to a hit Thai movie about a transvestite volleyball team.
Panithan Sethabutra, managing director for Yum! Restaurants International in Thailand and Indochina, said the chain was banking on a 20 per cent rise in sales from the joint movie promotion.
Pizza Hut is a subsidiary of Yum Brands Inc.
The story of the transvestite Volleyball team that fought its way to a national championship became the first Thai film to play in the US in early 2001. Satree Lek II, which will open in local cinemas this month, is expected to gross at least 100 million baht in Bangkok alone. It will be screened in Singapore later this month. Hong Kong in April and Japan before year-end. While the promotion will initially cover Thailand, it may be extended to other markets, including Singapore. The joint promotion with Hub Ho Hin and Tai Entertainment will primarily involve Pizza Hut distributing Satree Lek collector cards and 100,000 figurines. The promotion will be backed by a television commercial and point-of-sales support.
A campaign will simultaneously take Satree Lek parades to “areas where both Pizza Hut stores and cinemas arc present,” said Panithan. “The objective is to create awareness of the campaign and at the same time draw potential customers to eat at Pizza Hut”.
Pizza Hut has 83 outlets across Thailand is planning to open another six stores this year.
PHOTO (COLOR): Merchandise link…Pizza Hut is looking for a 20 per cent sales boost
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By Sangeeta Mulchand

PIZZA HUT BACKS NICKELODEON L8R TO REACH FAMILIES

2006-02-16T13:26:00.000-06:00

Pizza Hut has struck a deal with kids' channel Nickelodeon's to sponsor its weekday evening programming strand L8R as it seeks to encourage families to choose Pizza Hut for their evening meal.
The one-year tie-up, which is believed to be worth ?1.5m and breaks this week, will link the Pizza Hut brand with popular teenage shows including Saved by the Bell and Sabrina the Teenage Witch.
Pizza Hut will launch a series of on-air promotions, to be broadcast between 4pm and 7pm every Monday to Thursday. These will feature exclusive meal offers, to reinforce the brand as an exciting family choice. There will also be links with in-restaurant activity and cross-media tie-ups online.
The deal follows a long standing tie-up between rival Domino's Pizza and Sky, which included Domino's sponsorship of The Simpsons on Sky One, and the launch of a TV-based home delivery service.
Nickelodeon, which is available on cable and satellite, reaches 19.5% of four- to 15-year-olds in homes with a TV. Pizza Hut has more than 500 UK outlets.
PHOTO (COLOR): Pizza Hut: targeting family meals
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By Mark Kleinman

PIZZA HUT TAKES BATTLE TO 'IMITATORS'

2006-02-16T13:25:00.000-06:00

BANGKOK: Pizza Hut will undergo a 30 million baht (USdollars 700,000) makeover in Thailand to ward off what it called “imitators”.
The money will go towards building its brand and improving the quality of its outlets.
The company also plans to run a television, press and outdoor campaign to promote its range of new dishes.
Pizza Hut (Thailand) marketing director, Suwanna Usanachitt, said the campaign was intended to help consumers differentiate between the global restaurant chain and its rivals.
“We have had a monopoly of the pizza market for a while now, but we now need to get to another higher level because competitors imitate everything we have,” Suwanna said.
“It's time to set a benchmark and make the brand clearer to the consumer.”
The pizza fast food market in Thailand has been full of intrigue and backstabbing since the relationship with Pizza Hut's original franchise partner, The Minor Group, went sour.
The Thai-based group attempted to take on the global giant by setting up a direct competitor—The Pizza Company—in many of Pizza Hut's former prime locations. A bitter marketing and distribution war has raged for three years and continues.
However, this campaign signifies a highly-improved stance from Pizza Hut's once tenuous position, having clawed its way back into the lucrative market.
Suwanna said no more outlets would be opened this year, but 12 would be opened next year in Bangkok and provincial centres. The company is also testing consumer reaction to its multi-branding venture—outlets selling both KFC and Pizza Hut products. Suwanna said Pizza Hut was aiming for a 40 to 50 per cent market share this year, up from 35 to 40 per cent last year.
PHOTO (BLACK & WHITE): Pizza Hut…batting former partner
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By David Johnson

MARKETING CAMPAIGNS PIZZA HUT GETS EDGY

2006-02-16T13:24:00.000-06:00

The pizza chain's commercials break through by delivering a parody of reality TV
Pizza Hut has had many firsts: First to bring pan pizza to Canada, first to stuff our crust, first to bring toppings to the Edge and now the first to parody the reality TV genre with advertising.
Reality-based TV shows are everywhere-if it's not Survivor or The Lofters, it's Big Brother orPop Stars-and they show no sign of slowing down. They depict fellow human beings often at their worst and we love to watch.
They have gone so far and are so popular, we felt it was time to poke a little fun at these shows. We took a leap of faith with our agency, BBDO Toronto, and gave them the leeway to create something truly unique that would break through the clutter.
The ultimate challenge, however, was to hit that fine balance between mock reality show promo and branded Pizza Hut advertisement. We had to ensure that viewers would recognize the parody as genuine and therefore credible, but also receive the brand messages about great tasting Edge pizza at an affordable price.
Instead of creating detailed storyboards and over-analysing each word of the script, we created “scene objectives”-these being the main messages we knew we had to get across in each vignette, whether it was a new topping or a price point.
The director of the campaign, Stephen Markle, took the time to really work with the cast of four very talented actors to ensure they understood each scene's objective. As they transformed themselves into their characters, we let them loose to see what would evolve. Ultimately, we relied on the actors to bring each scene to life.
The set was perfect-we took over a large loft in downtown Toronto, brought in four video cameras and shot everything handheld. Film would not have delivered the level of intensity we were looking for. Beyond shooting scenes, we also incorporated private interactions with the characters and the audience, a laSurvivor.
The food shots were also anomalies. Working in the reality genre with video shot handheld instead of film, we focused on how the characters interacted with pizza in their everyday lives, not just the food itself. The final spots included shots of open boxes of pizza with half-eaten pieces and crumbs strew across the couch. Even with images of our food, we maintained the reality theme and steered clear of “bite and smile” food shots.
Our approach was tongue-in-cheek. We didn't want to be serious. How could we be about ironing dollar bills, addictions to the Edge pizza or roommates wielding knives over the last slice? Just as you see on any reality TV show, we wanted to capture wildly exaggerated moments of everyday life.
The final touch: Pop-up Video-style supers to communicate price points and other key information. At the end of two days of shooting, we knew we had a winning campaign.
The end result was four ads running across English Canada with airings that varied by market-two 30-second and two 15-second pieces. At the same time, a radio campaign ran featuring the same four housemates. Extensive in-store POP and direct mail also supported the campaign.
Everything about the campaign was over the top and right on target. In each execution, I had a favourite scene that made me laugh each time I saw it. This was the reaction we were looking for from our customers and we got it.
Through the duration of the campaign, the number of Edge pizzas sold more than tripled across the country.
Brand distinctiveness is becoming more difficult than ever to secure through the television medium. Marketers are looking for advertising ideas that take more risk each time to capture the attention of their target consumer. Some go too far, some not enough. This advertising idea fit with our brand, had never been done before and proved itself in breaking through. Our challenge, like every marketer's challenge, is what to do next time to raise the bar even further. Stay tuned!
PHOTO (COLOR):
PHOTO (COLOR): The ads featured a funky loft, no script and were shot on video
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By Andrew Armstrong

Pizza Hut to offer self-made range

2006-02-16T13:17:00.001-06:00

Pizza Hut is allowing diners to assemble their own pizzas with an innovation branded Top “n” Roll, in the chain's latest bid to build its share of the UK fast-food restaurants market.
The company's UK arm, which is a joint venture between Yum! Brands and Whitbread Group, is trialling the fajita-style product at its restaurants in Edinburgh.
Building on the success of recent product launches such as Stuffed Crust and The Quad, Top ‘n’ Roll is a rectangular, thin-base pizza delivered to diners' tables with a platter of toppings and two sauces. It enables customers to construct their own pizza using their combination of toppings and sauce, which they then roll up to eat.
Pizza Hut intends to trial Top ‘n’ Roll over an unspecified period, and if it meets anticipated targets it will then be launched across the UK, backed by a major advertising campaign. Abbott Mead Vickers BBDO will create the ads, with media through PHD and in-store communications by AMV Advance.
The chain has 500 UK outlets, 340 of which are dine-in restaurants and 160 home delivery shops. It has just embarked on a pounds 75m expansion programme that will see the opening of 75 further outlets. It ultimately wants to operate 880 UK restaurants.
Its competitors include Domino's and Pizza Express, but last month, Pizza Hut declared that it also wanted to challenge the dominance of McDonald's and Burger King by opening quick-service concepts in railway stations and shopping malls.
PHOTO (COLOR): Pizza Hut: building on success of recent launches such as The Quad
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By Mark Kleinman

Spots Pizza Hut

2006-02-16T13:17:00.000-06:00

Grant Wood's classic painting `American Gothic' comes to life, pitchfork included, to attack Pizza Hut's new Chicago Dish pizza in this spot from Omnicom's BBDO Worldwide, New York. Chief Creative Officer: Ted Sann. Art Director: Ted Shaine. Copywriter: Tom Darbyshire

Pizza Hut retains PHD for media task

2006-02-16T13:16:00.000-06:00

Pizza Hut has retained PHD for its ?7m media planning and buying account, after the agency fought off an attempt by Zenith Media to wrest the business away.
The decision coincides with Pizza Hut's weekend declaration that it intends to challenge fast food behemoths McDonald's and Burger King by creating quick-service concepts in railway stations, shopping malls and other busy thoroughfares.
It is also looking at installing take-away counters in its restaurants for busy customers who want a fast bite. The initiative aims to drive sales among afternoon shoppers and families, as well as drinkers leaving pubs at closing time.
PHD won the Pizza Hut media buying account from IDK in 1998 when the company consolidated its marketing into the Abbott Mead Vickers BBDO Group. It already handled media planning.
The UK's biggest pizza chain, jointly owned by Whitbread and Yum! Brands, formerly Tricon Restaurants, is a prolific user of many different media, including sponsorship, TV, and outdoor.
This year's Valentine's Day saw the Evening Standard's now-defunct Hot Tickets magazine wrapped in foil branded with Pizza Hut livery. It was promoting the restaurant chain's new Oven-Fresh Delivery system to couples spending a romantic evening in.
The promotion also saw Pizza Hut sponsoring the Evening Standard's Valentine's Day message board with an invitation to send a text message to win a prize.
In February PHD brokered a year-long, ?2m deal with Capital Radio, in which the pizza brand will sponsor the Foxy's Big Drive Home show and the nightly Schooly's Six Slices programme. The most recent TV campaign starred the four Pop Idol judges.
PHOTO (COLOR): Pizza Hut: aims to challenge fast food giants with quick-serve concept
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By Tania Mason and Poppy Brech

Pizza Hut's New Pasta

2006-02-16T13:15:00.000-06:00

Pizza Hut is entering the quick-casual fray. The Dallas-based concern, a unit of Yum! Brands, recently struck a licensing deal with tiny Pasta Bravo. The 15-unit chain headquartered in Aliso Viejo, Calif., serves a variety of freshly prepared pasta dishes, some of which will be offered under the familiar red roofs.
Pizza Hut officials are not saying which items would be adopted from the menu or whether upscale Pasta Bravo would maintain its own identity within the restaurants. Nor are they offering information as to how long the test would run or where the first co-branded unit would be. Officials at both companies did not return calls by press time.
Pizza Hut intends to test Pasta Bravo only at dine-in units, primarily operated by franchisees.
Analyst Andrew Barish of Banc of America Securities said the Pasta Bravo menu would “enhance the consumer proposition.” While franchisees would likely have to spend more than the typical $75,000 it costs to remodel a unit, he says, sales and profits would increase significantly. Yum! maintains cash flow can swell 30 percent in co-branded units.
In fact, Yum! Brands (formerly Tricon Global Restaurants) launched a multibranding strategy several years ago, adding a limited Pizza Hut menu to KFCs and Taco Bells. To date, the Louisville, Ky.-based holding company has co-branded 1,600 of its 21,300 domestic restaurants.
Like giant Pizza Hut, Pasta Bravo is family-oriented. Menus offer buckets of spaghetti and meat sauce serving four to six people ($12.95). Fancier pastas such as Thai chicken and seafood are sold by the plate. Prices run from $5.55 to $7.95 for single items.

NATIONAL NEWS TEAM PLAYER'S DELIVERS FOR PIZZA HUT

2006-02-16T13:14:00.000-06:00

The Team Player's racing team has signed a two-year deal with Pizza Hut Canada to promote the pizza chain's delivery service hotline.
The Toronto-based retailer is not revealing the financial details of the deal with the CART racing team, but John Bitove, chair and founder of priszm brandz, which owns a majority of Pizza Hut, says it is worth millions of dollars. “What we're trying to do, as our delivery service continues to grow and becomes a bigger part of the equation, is get the message of speed and simplicity through, which is becoming more important from a marketing aspect,” says Bitove.
As part of the deal, Pizza Hut's hotline, 310-10-10, will adorn the race cars of Player's drivers Alex Tagliani and Patrick Carpentier. There will also be in-camera TV coverage of the three Molson Indy races in Toronto, Vancouver and Montreal. Team Player's will also provide name and racing imagery to Pizza Hut for its merchandising, advertising and in-store point-of-purchase materials. The chain's racing-themed summer promotion launched on July 1 and was created by its agency, BBDO in Toronto.
As the racing team's only retail partner, Pizza Hut should succeed in standing out, says Bitove. “The fact that we're the onboard cameras and the only retail partner is something that's unique to them. That was part of the attractiveness to us, there was no clutter that way. If you look at other companies associated with it, a lot are kind of automotive types.”
As for the potential for Pizza Hut to become a major sponsor of the racing team when tobacco companies are required to end their sponsorships in 2003, Bitove says right now the partnership is just a two-year deal. “We want to see how it goes this summer and learn from it, and figure out how to do more next year, and we'll reassess at the end of two years what we want to do then.”
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By Sarah Dobson

Pizza Hut succeeds with spots for 'Insider' (even has a jingle)

2006-02-16T13:13:00.001-06:00

When earthquakes kill thousands, my faith in God is shaken. When presidents turn to burglary, my faith in government is shaken. When priests molest children, my faith in the clergy is shaken. When terrorists slip through gaping cracks, my faith in the FBI is shaken. When viewers tune in to Bill O'Reilly, my faith in humanity is shaken.
All that I can handle. But when the loud and idiotic Jason Alexander campaign for KFC corresponds with increased sales for the advertiser, my faith in me is shaken.
That I cannot handle.
(Look, I know what the headline says, and I see the photo, too. I'll get to Pizza Hut in a minute. Can't you see I'm in crisis here?) Since the ``It's Not Fast Food. It's KFC'' spots from BBDO, New York, broke, same-store sales have increased and consumer loyalty, according to one survey, has jumped dramatically. Meanwhile, sales have also grown at Taco Bell in the wake of the equally bizarre Foote, Cone & Belding, San Francisco, campaign that trots out one stupid commercial after another built around the admittedly ingenious theme line ``Think Outside the Bun.''
Why are these Yum Brands brands growing? Why?
It could be that they both have solid positioning. In fact, they have the same positioning: take a break from fast-food burgers. It could be that their performance a year ago was so woeful - both way down in same-store sales - that any new message was bound to improve the status quo. It could be that their operations, quality of ingredients and menu variety have dramatically improved under new top managers.
It could be that McDonald's is foundering, and a sinking ship raises the water level for everybody else.
Or, it could be ... jeez, somebody get me a glass of water; I'm a little light-headed here ... that I was wrong.
No admissions just yet. A concession would be premature, but just bear the foregoing in mind as I evaluate the latest work from a Yum Brands brand, this one Pizza Hut, for its Insider pizza.
Yum gave this assignment not to Pizza Hut's agency of record, BBDO, but to Wieden & Kennedy, Portland, Ore., making a lot of people at Omnicom very nervous about the immediate future. They probably should be nervous. Pizza Hut is in a bad way - for reasons that have little to do with advertising. (Its problems can be summarized in one question: Why would you go to Pizza Hut?)
`WHERE'S THE CHEESE AT?' Anyway, Wieden, in the catbird seat, has done pretty well. Never mind that the new campaign steals nakedly from ``Where's the beef?'' The catchphrase in the dialogue is ``Where's the cheese at?'' but why shouldn't it be? Besides, the spots have a rare and fabulous jingle. Remember jingles? Of course you do, because jingles are memorable and, I hope, poised for a comeback.
Meantime, the spots still manage to follow Yum's food-shots-pressed-up-to-the-viewers'-eyeballs protocols.
The result is to make the Insider pizza, which has most of its six cheeses baked inside, look novel and reasonably appetizing. Whether that's sufficient to make anybody schlep to a Pizza Hut to sit in a relic of `70s architecture to wait for a product anybody else will deliver to the front door ... well, that's the question. I would say no.
So I suppose the answer is yes.
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By Bob Garfield

WIEDEN'S PIZZA HUT SPOT SUFFERS SHORT SHELF LIFE

2006-02-16T13:13:00.000-06:00

After One Week on the Air, Ad Gets Yanked in Favor of BBDO Work
NEW YORK—Wieden + Kennedy's first work as a new roster shop for Pizza Hut has been pulled off the table after only a week. Replacing it is a spot from longtime agency BBDO, sources said.
Wieden's “Where'd the cheese go?” ad for the Insider pizza broke on May 13. It is unclear when that spot was pulled, but as of May 20, it already had been replaced by the BBDO commercial, sources said.
A client representative would neither confirm nor deny that BBDO produced the second spot, but acknowledged that the original one had been replaced.
When asked why changes were made, she said, “We don't speak publicly about our strategy.” Wieden and BBDO declined comment.
However, sources said, like most fast-food retailers, Pizza Hut measures its sales daily, and sales were down the week the first spot ran.
Wieden's spot showed people looking for cheese. A man opens a sandwich, another sucks the empty can of a cheese product and a girl on the school lunch line eyes a macaroni dish and asks, “Where's the cheese at?”
A song plays throughout with the chorus, “Where'd the cheese go?” followed by the refrain, “Inside, inside.” Close-up shots are used of the Insider pizza, which has a cheese-filled crust.
The BBDO spot uses the same product shots, but not the song or people. Instead, a male voiceover emphasizes the variety and amount of cheese in the Insider, calling it “revolutionary.”
Portland, Ore.-based Wieden became Pizza Hut's second shop two months ago [Adweek, March 12] after a review for the Insider pizza assignment. BBDO in New York has held the main $140 million Pizza Hut account since 1987.
PHOTO (BLACK & WHITE): BBDO's food-focused commercial
PHOTO (BLACK & WHITE): Weiden's pulled people effort.
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By Kathleen Sampey

AFTER A WEEK ON THE AIR, AD IS YANKED IN FAVOR OF ONE FROM BBDO

2006-02-16T12:48:00.000-06:00

NEW YORK--Wieden + Kennedy's first work as a new roster shop for Pizza Hut has been pulled off the table after only a week. Replacing it is a spot from longtime agency BBDO, sources said.
Wieden's "Where'd the cheese go?" ad for the Insider pizza broke on May 13. It is unclear when it was pulled, but as of May 20, it already had been replaced by the BBDO commercial, sources said.
A client representative would neither confirm nor deny that BBDO produced the second spot, but acknowledged that the original one had been replaced.
Asked why the change was made, she said, "We don't speak publicly about our strategy." Executives at Wieden and BBDO declined to comment.
However, sources said Pizza Hut, like most fast-food retailers, measures its sales daily, and sales were down the week the first spot aired.
Wieden's ad showed people looking for cheese. A man opens a sandwich, another sucks the empty can of a cheese product, and a girl on a school lunch line eyes a macaroni dish and asks, "Where's the cheese at?"
A song plays throughout with the chorus "Where'd the cheese go?" followed by the refrain, "Inside, inside." Close-ups of the pizza show its cheese-filled crust.
BBDO's ad uses the same product shots but not the song or people. Instead, a male voiceover emphasizes the "revolutionary" variety and amount of cheese in the Insider.
Wieden, based in Portland, Ore., became Pizza Hut's second shop two months ago [Adweek, March 12] after a review for the Insider assignment. BBDO in New York has held the main $140 million Pizza Hut account since 1987.
PHOTOS (BLACK & WHITE): BBDO's spot (l.) uses product shots but not the people from Wieden's (r.).
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By Kathleen Sampey

PIZZA HUT DENIES CLAIM OF MEAT IN 'VEGGIE' PIE

2006-02-16T12:45:00.000-06:00

DALLAS — The Seattle lawyer who sued McDonald's last year, alleging that the chain concealed the use of beef extract in its fries reportedly has targeted Pizza Hut with a similar lawsuit.
The proposed class action was filed in U.S. District Court in Seattle, alleging that Pizza Hut has used beef products in its “Veggie Lover's” pizza and falsely has promoted it as suitable for vegetarians, according to published reports.
Pizza Hut spokeswoman Patty Sullivan said the pizza has no meat products in it. She said she could not comment on pending litigation but added that the Veggie's Lover's item is not marketed as a vegetarian product. and its name refers to its toppings.
The suit against Pizza Hut reportedly was filed on behalf of 15 million vegetarians and 1 million Hindus who don't eat meat for religious reasons.

PIZZA HUT ENLISTS POP IDOL QUARTET FOR TV LAUNCH AD

2006-02-16T12:44:00.000-06:00

Pizza Hut has recruited the four judges from Pop Idol to star in a television ad campaign promoting a new pizza with four different toppings, called The Quad.
The Quad comes with pre-set toppings — Veggie Supreme, Meat Feast, Super Supreme and Spicy Hot. Available in medium and large sizes, it will cost between ?9.99and?12.
The ads, by Abbott Mead Vickers BBDO, star Dr Fox, Simon Cowell, Nicky Chapman and Pete Waterman and will break in mid-May. Media is by PHD.
The Quad is the latest in a series of launches by Pizza Hut this year. In February it set out to challenge Domino's Heat Wave technology with the launch of Oven Fresh Delivery, a heated pouch that guarantees to keep home deliveries piping hot. And in early April it relaunched The Sicilian, a variant with basil, oregano and garlic.
Pizza Hut had a record year in 2001. Sales topped ?310m, confirming it as leader of the ?1.9bn British pizza market.
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By Tania Mason

AGENCY RELATIONSHIPS. BBDO DEFENDS PIZZA HUT TURF

2006-02-16T12:43:00.000-06:00

Omnicom Group's BBDO Worldwide, New York, is feeling the heat on Pizza Hut's $150 million account, ruled by the agency for the past 15 years.
As Wieden & Kennedy, newly anointed second agency on the Tricon Global Restaurants chain's business, prepares to serve up its first work for Pizza Hut, BBDO last week dispatched a cadre of top executives to Tricon's Dallas headquarters in what is viewed as a defensive move. The contingent included Andrew Robertson, BBDO president-CEO, and Ted Sann, vice chairman-chief creative officer, BBDO North America, along with a number of BBDO creatives who do not currently work on the Pizza Hut account. The group did not include BBDO North America Chairman Phil Dusenberry, who is retiring next month, and has a close relationship with Tricon CEO David Novak.
The visit's goal, according to executives close to the situation: At worst, to solidify BBDO's hold on the account, or at best, win back the slice of the pie awarded to independent Wieden, based in Portland, Ore. "[Pizza Hut] hired Wieden for killer creative, not account management," said an executive close to the marketing team. "With Wieden being the second agency, I guarantee you BBDO is worried."
BBDO declined to comment and referred all calls to Pizza Hut. A spokeswoman for the chain said "BBDO continues to be the lead agency for Pizza Hut," adding, "We meet with our agencies all the time." Wieden had no comment.
Pizza Hut, the former star-concept-turned-problem-child in the Tricon portfolio, has seen uneven sales results despite new menu introductions, discounts and promotions. Pizza Hut closed 2001 with flat same-store sales on a 5% fourth-quarter same-store decline, but showed some signs of improvement in February. Same-store sales were flat in March. Pizza Hut ended the first quarter with a 2% gain in same-store sales, below the 3% rise of Tricon sibling KFC. Taco Bell comparable-store sales were flat, but improving. Wieden bested Cliff Freeman & Partners, WPP Group's Ogilvy & Mather and Publicis Groupe's Saatchi & Saatchi, all New York, for a secondary assignment for one-off projects, with Pizza Hut's "Insider" specialty the first work, scheduled to break in mid-May.
PHOTO (COLOR): TEXAS TWO-STEP: Robertson
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By Kate MacArthur and Rich Thomaselli
Contributed by Alice Z. Cuneo

PIZZA HUT UNVEILS HEATED POUCH FOR DELIVERY MARKET

2006-02-16T12:37:00.000-06:00

Pizza Hut is to challenge Domino's Heat Wave technology with the launch of Oven Fresh Delivery, a heated pouch that guarantees to keep home deliveries piping hot.
A TV campaign by Abbott Mead Vickers BBDO will support the launch of the pouch. It breaks on February 4 and will run for two months.
The ad, which has three different endings, features a woman ordering a pizza for herself and her partner, and then being unable to stop herself eating it all before her boyfriend gets home. When he arrives, she can't bring herself to tell him she has eaten the whole pizza.
One ending shows the boyfriend suggesting they order an extra large pizza. Another has him deciding to order two, while in the last he says he is hungry enough to eat a horse, to which she responds “maybe a small pony”.
Soon after the campaign breaks, Pizza Hut also plans to run its first brand ads for several years, also through AMV BBDO. Outgoing marketing director Bill Ogle would not give details. In early April, Pizza Hut will relaunch The Sicilian, a variant with basil, oregano and garlic, also to be supported with ads.
PHOTO (COLOR): Pizza Hut: plans three campaigns
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By Tania Mason

NEW YORK PIZZA HUT NARROWS TO 3 FINALISTS

2006-02-16T12:36:00.000-06:00

Pizza Hut has selected Ogilvy & Mather, Cliff Freeman and Partners, both New York, and Wieden + Kennedy in Portland, Ore., to compete in a review to handle project advertising, sources said.
Media spending on the assignment was undisclosed. Pizza Hut spent $140 million overall in U.S. media in 2001, according to CMR.
While the account is limited to an assignment, contenders consider it to be significant because it allows them to get a foot in the door with a big- spending, high-profile client.
The Dallas-based client in December confirmed it was looking for a secondary agency to BBDO in New York, which has held the main ad account since 1987.
It is not the first time Pizza Hut looked beyond BBDO. In late 1993, the client put its kids' advertising account into review, awarding the $10 million assignment to Goodby, Silverstein & Partners in San Francisco.
Nine months later, Goodby competed against BBDO in a creative shootout for the whole account. BBDO retained the business.
Goodby kept the kids' business until September 1997, when the client moved it to BBDO after a reorganization at the the client's then-parent company, PepsiCo. Pizza Hut is now part of Tricon Global, also affiliated with PepsiCo.
The agencies declined comment as did a client representative.
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By Kathleen Sampey

PIZZA HUT BOSS MOVES TO CONCEPTS ROLE IN US

2006-02-16T12:35:00.000-06:00

Pizza Hut has promoted UK marketing director Bill Ogle to the new role of vice-president of concept development in the US. He is to test ideas such as drive-through sites and partnering with other restaurant brands under one roof. The concepts could later be introduced to the UK.
Ogle will be replaced in the UK role by James O'Reilly, who previously led marketing for Tricon Restaurants, Caribbean-Latin America, with responsibility for Pizza Hut, KFC and Taco Bell.
O'Reilly takes up the post in February, reporting to chief executive Mark Jones. His role will include product innovation and marketing for the 75 UK restaurants and delivery outlets the chain plans to launch this year.
O'Reilly described relationships with Pizza Hut's UK's agencies Abbott Mead Vickers BBDO and PHD, as excellent, but would not rule out a review.

PIZZA HUT NAMES NEW VP

2006-02-16T12:33:00.000-06:00

Cindy Hennessy has been named vp-national marketing for Tricon's Pizza Hut. She begins Jan. 24, after having spent the last two years as president of e-matchmaker Match.com.
The appointment fills a vacancy left by Jeff Fox, who left last June to join sister concept Taco Bell as vp-national marketing.
In 1986, while at Tracy Locke Partnership, Dallas (now TLP), Hennessy began what she calls her "long and sordid [but] very symbiotic relationship" with new again boss Randy Gier, Pizza Hut's CMO, who was Hennessy's client in previous positions at Pepsi, Frito-Lay and Taco Bell.TLP still serves the No. 1 pizza chain.
Hennessy says her focus will be on product innovations "that are going to drive the cultural growth and consumer passions" for Pizza Hut products as well as "the ways people order pizza," which dovetails with her online experience. Next up at the Hut: Folded-over P'Zone pizza. Ads break Jan. 27, via BBDO.

PIZZA HUT'S $70M 'TWISTED' PUSH HOPES TO DELIVER HEATED DEBATES

2006-02-16T12:22:00.001-06:00

In the first part of a $70 million ad blitz for its "Twisted Crust" pizza, Pizza Hut will launch TV spots showing two people debating now to eat the new offering, which features a detachable breadstick in lieu of a crust.
The first spot, "Pizza Quarrel? via BBDO, New York, features "lick the screen" shots of the new pie set to a heavy metal soundtrack. A voiceover features two brothers saying: "Hey check it out, a totally twisted way to eat pizza from Pizza Hut. Yeah a twisted crust pizza from Pizza Hut. It's a breadstick. No, it's a pizza." Tagline is: "Get twisted?
Later spots will likely feature similar arguments among a father and son, a coach and referee, culminating with two yet-unnamed celebrities going at it.
Spanish versions, via Dieste, Dallas, have been shot and will air on Telemundo and Univision. The push is expected to run for 18 weeks.
"This will be an inescapable, unavoidable launch," said Randy Gier, CMO at Pizza Hut, Dallas. "We want to create enormous debate about how to eat our pizza."
While the new pie will likely be an in-and-out product, Gier said demand will dictate its ultimate life span.
Such splashes have been hit or miss in the past. The "Edge" crustless pie, introduced in 1997, was somewhat of a disappointment. However, "Stuffed Crust" pizza, launched in 1995, was a smash raking in $1 billion.
The launch also comes at a time when Pizza Hut sales have slowed and rival Papa John's is presenting strong competition with deep discounts. For the latest four-week period, Pizza Hut's same-store sales grew 2%, compared to 8.9% for Papa John's, which offered price cuts in an anniversary promotion.
The Twisted Crust pizza will be part of the "Big Cheese Road Trip" sampling tour launching this week on the West Coast. The tour targets Pizza Hut's core audience: teens and college students. "The key is to catch them when they're teenagers. That's when you build pizza loyalty," said Gier.
An all-purpose vehicle will have games, music and food. It will appear at local sporting events, concerts and college campuses. The guerrilla effort will wrap up in six months on the East Coast.
PHOTO (COLOR): Here's a Twist: sampling tour hits road.
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By Kenneth Hein

E-BUSINESS PIZZA HUT DEBUTS ONLINE LOUNGE

2006-02-16T12:22:00.000-06:00

DALLAS -- In a drive to appeal to 18- to 30-year-old consumers, known as echo boomers, Tricon Global Restaurants' Pizza Hut division rolled out a revamped Internet site. According to Randy Gier, chief marketing officer for the pizza chain, a chief feature of the redesigned site is the Pizza Hut Lounge, described by the company as"a virtual destination" with "the look and feel of an actual lounge."
"Echo boomers are important to Pizza Hut because they eat a lot of pizza, plain and simple," Gier said. "And we want to be where echo boomers are, which is on the Web. We created the Pizza Hut lounge with them in mind and believe they'll find it relevant to their lifestyles and interests."
Company sources said animated caricatures of magicians Penn and Teller, stars of Pizza Hut's latest "stuffed crust pizza" ad barrage, would act as emcees in the lounge, where news about the company, product photographs and other Pizza Hut information will be available. Visitors to the site will be able to download the current TV spots featuring the illusionist duo as well as video wallpaper with a lounge theme.
In a written statement Gier said the decision to revamp the Pizza Hut site "underscores our commitment to innovation and remaining relevant to our consumers."
Further refinements and additional features are promised for pizzahut.com, company sources said. Current plans call for the rollout of dynamic online coupons, Internet ordering capability and nutritional information. Special promotions designed to appeal to children are also in the works.
Pizza Hut currently has 8,000 units in the United States and 4,000 additional units in 90 countries throughout the world.

The redesigned site is described by Tricon officials as " a virtual destination" with "the look and feel of an actual lounge."

CIRCUIT BY CIRCUIT: FEDERAL CIRCUIT COURT OF APPEALS MEAT-PACKING COMPANY SEEKS SLICE OF PIZZA HUT

2006-02-16T12:21:00.000-06:00

A ruling by the U.S. Court of Appeals for the Federal Circuit has opened the door for a small meat-packing company to take a major slice of Pizza Hut.
The Dallas-based pizza chain is banking partly on a statute-of-limitations argument to derail a potential trade-secret misappropriation judgment that could exceed $150 million. Pizza Hut Inc. also claims an agreement it signed in 1985 with Elk Grove Village, Ill.-based C&F Packing Co. allowed the pizza chain to divulge to some of its other suppliers the meatpacker's process for making precooked sausage.
In March 1993, C&F sued Pizza Hut and one of those suppliers, IBP Inc., claiming Dakota Dunes, S.D.-based IBP infringed C&F's patented process for making the precooked sausage, and that Pizza Hut improperly divulged the process to IBP. While the U.S. District Court for the Northern District of Illinois on Jan. 26, 1994, ruled against IBP, it dismissed C&F's claims against Pizza Hut. The district court ruled that the laws of Kansas, Pizza Hut's home state, governed C&F's misappropriation claims and that C&F, therefore, had failed to state a claim upon which relief could be granted.
The CAFC, in its Aug. 25 decision, not only upheld the ruling against IBP but also overturned the dismissal of C&F's claims against Pizza Hut. The Court remanded the case to the district court for a new decision in 2001.
Robert W. Millen, Pizza Hut's senior vice president and general counsel, expects to win the case on remand.
"This is a case, first of all, that is very, very old. It grows out of activities that began in 1981 and a relationship that Pizza Hut entered into with C&F in 1985," Millen says. "The District Court dismissed the misappropriation claims against Pizza Hut in 1993, shortly after the case was filed, and we certainly believe that decision was warranted. The Federal Circuit essentially ruled that the District Court's dismissal of Pizza Hut occurred prematurely, before C&F had the opportunity to present evidence supporting its theory. In that sense, obviously we weren't happy with the decision, but we're optimistic about achieving the same result upon remand to the District Court for further review."
INDUSTRY CUSTOM Millen says C&F filed its suit well beyond the statutory time limit and that fact alone should get Pizza Hut out of the case. He also says Pizza Hut operated within the framework of its agreement with C&F.
"When we entered into the relationship with C&F two decades ago, my understanding is we did so on the basis that, if C&F had anything it believed qualified for trade-secret protection, C&F knew and agreed that Pizza Hut would be free to supply specification information to other suppliers within the Pizza Hut system," Millen says. "This is customary in the industry and is a business necessity."
Millen notes C&F was never large enough to supply 100 percent of Pizza Hut's sausage needs, and, in order to maintain consistency for customers nationwide, the company had to supply this information to other suppliers.
"You never want to have your system dependent on one supplier, because if something catastrophic happened to one supplier, you could also be out of business," Millen adds.
"As a matter of course, Pizza Hut and parties such as Pizza Hut consistently enter into agreements with potential suppliers like this."
Not surprisingly, C&F's attorney sees it differently. Raymond P. Niro, senior partner at Chicago-based Niro, Scavone, Haller & Niro, is a high-profile patent attorney at a small firm, and he has a history of winning big bucks for his clients. He has won more than $250 million in judgments and settlements since 1997, including one of the biggest trade-secrets bonanzas ever awarded--a $57 million judgment for Injection Research Specialists Inc. in a case over the development of a snowmobile engine.
Niro dismisses Millen's position that Pizza Hut operated within the framework of its agreement with C&F and says he doesn't expect the court to allow Pizza Hut out of the case on a statute-of-limitations argument.
"They'd better hope something takes them out of it, because we're looking at about $150 million," Niro says. "It's always been our position that the real culprit was Pizza Hut. IBP was liable, too, but it was employees--officers of Pizza Hut--who made 50 separate visits to IBP to provide that company with information about how to make the precooked sausage. We used videotaped testimony of Pizza Hut employees, which became pretty decisive in the case. The court has already determined that we had trade secrets and that they were misappropriated."
Niro says Pizza Hut's claim that the statute of limitations passed doesn't hold water.
"They're contending that in 1986 we should have known they were going to steal our trade secrets in 1990," Niro says. "The issue is when might C&F reasonably have known when Pizza Hut would take their secrets. First disclosure took place in 1990, and the first product wasn't actually made until IBP began practicing the process in 1991. We found out about it in 1993, when a former C&F employee who had worked with IBP said he saw a Pizza Hut employee there giving information to IBP that had to come from C&F."
UNSAVORY SAUSAGE C&F and Pizza Hut, which had a business relationship prior to their 1985 agreement, entered into the arrangement in question after C&F perfected a technique for making and freezing precooked sausage.
Precooking is necessary, Niro says, because shipping raw sausage presents potential bacteria problems. C&F's technique preserved the look, taste and texture of the sausage after shipping. Without the new technique, precooked sausage had some rather unsavory characteristics, Niro "You never want to have your system dependent on one supplier," says Robert W. Millen, Pizza Hut's senior vice president and general counsel. says.
"The problem with the old precooked sausage was that it looked like rabbit droppings," Niro says. "These guys came up with a way to make it look, feel and taste home cooked. The Pizza Hut president saw this and said, 'We've got to have it in every one of our restaurants.'"
Niro contends Pizza Hut and its suppliers first tried to duplicate the technique but failed. At that point, Pizza Hut proposed a deal with C&F. Under the terms of the deal, as presented in the CAFC opinion, Pizza Hut would buy a large amount of precooked sausage from C&F in exchange for the meatpacker's divulgence of its process to other Pizza Hut suppliers. In addition, C&F leased the specialized equipment for making the sausage to the other suppliers and invested $4.5 million in a new plant to meet Pizza Hut's needs.
The CAFC's opinion notes that Pizza Hut told C&F in early 1986--after its other suppliers had learned the process--that it would not buy any more sausage from C&F without drastic price reductions. The opinion also notes that IBP entered into discussions with Pizza Hut in 1989 about providing precooked sausage, and that Pizza Hut furnished IBP with information about how to produce it. IBP also hired a former C&F supervisor and fired him five months later.
"Pizza Hut figures out how to do it and they go to IBP and teach them how to do it and how we were pricing, so they would always be a fraction of a cent lower in price than C&F," Niro says. "IBP then comes in and takes all the business from C&F.C&F wonders what's going on, how they can make it the way we did it. The employee tells us they got it from C&F."
Millen says the deal never appeared to be a problem for C&F until Pizza Hut decided to terminate its contract with C&F in 1993, and uses this reasoning as one of the bases for his argument that the statute of limitations should come into play.
"We believe C&F chose Pizza Hut's business over any objection to this arrangement," Millen says. "C&F only sued after enjoying the benefits of Pizza Hut's business for nine years, when Pizza Hut terminated the supply contract in 1993. This type of delay in bringing a legal challenge generally violates the statute of limitations, and we are hopeful that the district court will agree. We don't believe C&F's allegations have merit, either in accusing Pizza Hut of unlawful conduct and, more directly, in excusing C&F's delay in asserting its legal theory against Pizza Hut."
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By Cliston Brown , Illinois, Indiana, Wisconsin ia, Virgin Islands

PIZZA HUT, MAZZIO'S LAUNCH SAUCY, NEW PROTOTYPES

2006-02-16T12:20:00.000-06:00

Say upgraded units, nonpizza items to raise prospects for dough
Cegment leader Pizza Hut and Mazzio's, a 250-unit rival based in Oklahoma, are among a new wave of chains vying for a larger slice of the pizza market with new, upgraded casual-dining restaurant prototypes aimed at selling more nonpizza specialties.
The company, as part of the $500 million asset-upgrading program launched last year to modernize all its 7,100 domestic Pizza Huts with an enhanced decor package and new logo, recently debuted its first new dine-in location in the Dallas market in more than a decade.
A spokeswoman for Dallas-based Pizza Hut said delivery and carryout remain an important component in the enhancement project. Pizza Hut's two largest competitors, Domino's and Papa John's, are focused primarily on delivery and carryout, and both those chains said they have no plans to alter that strategy as a response to Pizza Hut's new remodeling program. The enhanced design elements in Pizza Hut's new dine-in prototype run the gamut from a host station to open ceilings. A company spokeswoman declined to disclose the per-person check average and opening costs of the new Dallas prototype restaurant, which features an upgraded and expanded menu. New items include such appetizers as mozzarella sticks and onion rings and several pastas.
Pizza Hut, a sister of Tricon Global Restaurant's KFC and Taco Bell chains, said it is encouraging franchisees to update their restaurants with the contemporary look. Pizza Hut said it hopes to have the entire system remodeled in the next five years.
Pizza Hut's largest franchisee, NPC International of Pittsburg, Kan., reported in its most recent financial results that its reimaging program has driven unit-sales gains of 30 percent of more. The company also said 54 restaurants remodeled in the last 18 months had notched same-store sales growth of 2.7 percent in the most recent quarter. NPC said it remains on track to meet its reimaging goal of approximately 60 stores for the fiscal year.
Meanwhile, the 250-unit Mazzio's chain last month debuted a 138-seat prototype that features table service, an upgraded menu, a full bar and a $7.50-per-person ticket average. That compares with the traditional dine-in restaurant of Tulsa, Okla.-based Mazzio's, whose standard outlets sell mostly pizza in a counter-service setting with a $4.50 average check.
Average annual unit volumes in upgraded Mazzio's locations are expected to be about $1.5 million to $2 million, compared with last year's average of $730,000 for a traditional Mazzio's
"The economy is strong, and people have more money in their pockets but are time-poor," said Greg Lippert, Mazzio's senior vice president of marketing. "People are demanding a higher quality of food, so they are turning to casual dining."
Lippert said one long-range objective with the new prototype, which debuted in Tulsa, is for the chain to invest more money in labor and less in marketing efforts
"One of our long-term goals is to not have Mazzio's so dependent on TV ads as a way to generate sales," he said. "We want to make Mazzio's more of an operations concept and less of a marketing concept. We hope to save dollars in our advertising and put that money toward labor."
But marketing strategist Al Ries of Ries and Ries in Roswell, Ga., warned that it would be no easy task for an established pizza chain to take on a casual-dining image.
"It is hard to change the minds of customers out there that see you as a 'pizza place,' "he said. "Generally speaking, a brand is locked into its past, and changes are made slowly and often with difficulty."
Mazzio's invested two years' worth of consumer research in developing a more upscale dining room design, menu and logo that carries the tag line "Great Food. Good Times."
Mazzio's initial casual-dining prototype was a unit the chain closed for several months during an extensive remodeling process. According to Lippert, the company chose a profitable unit for the first conversion.
"We had to prove to ourselves and to our franchisees that we can take an existing Mazzio's and make it better," Lippert said. "If we converted a poorly performing restaurant, of course sales would improve."
Lippert added that the remodeled restaurant now is attracting casual-dining consumers, which he said are "a whole new level of customers we were not getting before."
For its food upgrades, Mazzio's tapped two culinary experts from the Hard Rock Cafe to revamp the menu, which now offers new varieties of appetizers, salads, handmade pizzas and pasta specials, such as chicken cannelloni. Pizza generates only about 20 percent of sales at the new prototype, compared with 60 percent at a traditional Mazzio's.
The company plans to evaluate sales at the new restaurant over the next few months through customer feedback and by next year select other sites for the enhancement program, according to Lippert. He said the chain intends to keep per-unit conversions costs at about $150,000 although the company spent more on the initial prototype.

Mazzio's menu now offers new varieties of appetizers, salads, handmade pizzas and pasta specials.

Mazzio's invested two years' worth of consumer research in developing a more upscale dining-room design and upgrading its menu and logo.
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By Amy Zuber

Events & Promotions promo spotlight

2006-02-16T12:19:00.000-06:00

'ARTHUR' MARKS HIS 25TH YEAR WITH PIZZA HUT AND BORDERS

Effort: "Arthur's 25th Anniversary."
Marketer: Marc Brown Studios, Hingham, Mass.
Agency: In-house.
Twist: To help promote the Arthur brand spawned by his series of 26 "Arthur Adventure" books and children's TV series, author Marc Brown has spearheaded an integrated promotion for the character's 25th anniversary. Arthur has linked with Pizza Hut's "Book It!" reading incentive program and will be the centerpiece of a "Good-Deeds Literacy Contest" reaching 20 million students in 800,000 classrooms through 2001. One classroom will win a grand prize of a visit from Mr. Brown, and 17 other classrooms will win a party from Pizza Hut.
Vital statistics: Borders Books also is backing a children's writing and drawing contest, co-sponsored by Family Life and Parents, offering one grand prize of a free family trip to New York to meet Mr. Brown and tour the Children's Museum of Manhattan's "Arthur's World" exhibit, opening in May. A 10-city tour of the exhibit will follow, sponsored by Pizza Hut's "Book It!"
PHOTO (COLOR): Celebrate it! Pizza Hut's reading effort links with Marc Brown's Arthur.
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By Kate Fitzgerald, edits Events & Promotions

NEWS PIZZA HUT WEIGHS APPEAL AFTER REVERSAL OF PAPA JOHN'S AD BAN

2006-02-16T12:18:00.000-06:00

NEW ORLEANS -- As Papa John's breathes a sigh of relief following a federal appeals court's reversal of a lower-court ruling that prohibited the chain from using its "Better Ingredients. Better Pizza." slogan, thwarted plaintiff Pizza Hut is contemplating its next move in an all-out food fight between the two pizza giants.
Most striking for Pizza Hut, the appellate court found that some television commercials by Papa John's were "misleading," but the three-judge panel did not issue an injunction and ruled that Papa John's does not have to pay Pizza Hut nearly $468,000 in damages awarded by the lower court.
The appellate judges' unanimous 38-page opinion stated that "Pizza Hut failed to offer probative evidence on whether the misleading facts conveyed by Papa John's through its slogan were material to consumers: that is to say, there is no evidence demonstrating that the slogan had the tendency to deceive consumers so as to affect their purchasing decisions."
That portion of the ruling is "troubling" to segment-leading Pizza Hut, according to Robert Millen, senior vice president and general counsel for the Dallas-based company, which has more than 7,000 U.S. units. Millen said a requirement to introduce evidence showing that consumers' purchasing decisions were affected is "unknown in the world of advertising law."
Meanwhile, Papa John's -- which recently has overtaken Little Caesars for the pizza category's No. 3 rank on the basis of systemwide sales --applauded the appeals court ruling, which concluded that its slogan constituted puffery, or "an exaggerated opinion of superiority that no consumer would be justified in relying upon."
The lower-court ruling, if left standing, would have prohibited Papa John's from using the word "better" to describe its pizzas and from running ads comparing its product to Pizza Hut's.
Although Papa John's received a temporary stay on the use of its slogan while the appeal was pending, the Louisville, Ky.-based company had estimated that the cost of implementing a new slogan would have been about $5 million. Last year Papa John's filed a separate lawsuit against Pizza Hut for using the image of Papa John's founder and chief executive, John Schnatter, in a Pizza Hut television commercial without his permission. That case is pending in a Louisville district court, and no trial date has been set.
"We want to get back to the business of selling pizza, and we know that Pizza Hut wants to do the same," said Karen Sherman, vice president of public relations for the 2,479-unit Papa John's chain.
Yet Pizza Hut would like to see Papa John's stopped from airing similar comparative advertising in the future, Millen said.
"It would be important for us to have a court finally determine that it is against the law for Papa John's to use its slogan to communicate specific superiority claims that are misleading," Pizza Hut's Millen said. He added that the company is reviewing the court's decision "to determine whether a motion for consideration or an appeal to the [U.S.] Supreme Court would be appropriate."
Millen said Pizza Hut has about 90 days to make its derision, but he thinks the company has "very good grounds" for an appeal.
Attorney Joe Dreitler, a trademark litigator with Jones, Day, Reavis & Rogue in Columbus, Ohio, said he thinks it is unlikely that the Supreme Court would hear the case. However, Dreitler expressed concern that the appeals court ruling could be confusing to marketers.
"The problem is, What signal does this send to companies and their advertising agencies as to what is fair game?" Dreitler said. "My concern is that the message people will take away is that the court OK'd Papa John's ads. Advertisers at other companies will say, 'If Papa John's got away with it, why can't we do the same?' To me that is an unfortunate thing. The court didn't ask to see evidence and then make a decision from that."
It is unusual for an appeals court to overturn a jury verdict, Dreitler noted. He added that the court might have been sending a message to both parties that this matter should be settled in the marketplace, not in the courtroom.
"I think this court essentially is saying, 'Take your food fight back onto the street,'" he explained.
Originally, the two chains attempted to quell the fires out of court. In November 1997 Pizza Hut filed a complaint over Papa John's comparative advertising with the National Advertising Division of the Better Business Bureau, an industry self-regulatory body. But the NAD found that Papa John's ads were not misleading, and in August of 1998 Pizza Hut filed a lawsuit in a Dallas district court.
Hal Shoup, executive vice president of the American Association of Advertising Agencies and director of the group's Washington office, said one positive outcome of the lawsuit is that the NAD recently developed a new type of participant agreement for settling complaints.
"The NAD has developed a new agreement so that from the outset of a case the participants agree that they will accept the decision as final," Shoup said. "That is significant because it makes the decision binding. Had this been in effect two years ago, both Pizza Hut and Papa John's would have agreed that the decision was final."
Shoup noted that without this new agreement, parties could have continued to take unfavorable NAD decisions to court, and that would have eroded the value of the voluntary system.
Meanwhile, the pizza wars continue to rage following a summer of relatively sluggish same-store sales among the nation's largest chains. Pizza Hut and Papa John's both recently launched new products that were introduced to consumers in television commercials that aired during the hype of the Olympic Games in Sydney.
Domino's Pizza, the nation's No. 2 pizza chain, seems to have remained outside the fray although the Ann Arbor, Mich.based chain is expanding its "Bad Andy" marketing campaign during the Olympics but was not expected to release a new product.
In September Papa John's introduced a revamped, $9.99 thin-crust pie with a crispier crust and bigger topping portions.
Less than one week later Pizza Hut was scheduled to debut at the same price point a new product called the Insider, featuring a six-cheese blend between two thin crusts covered with sauce, more cheese and a choice of toppings. Pizza Hut, which is owned by Tricon Global Restaurants, said it spent more than $40 million on a marketing campaign to launch the product with hopes that it will boost the chain's same-store sales in the fourth quarter.

Papa John's founder and chief executive, John Schnatter, apparently has taken a lighthearted approach to a recent appeals court ruling that allows the chain to use its "Better Ingredients. Better Pizza." slogan.
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By Amy Zuber

PIZZA HUT LAUNCHES 'THE INSIDER'

2006-02-16T12:16:00.000-06:00

New Product Is Supported by $40 Mil. TV Campaign From BBDO
DALLAS--Pizza Hut is looking inward for a new marketing hit as it releases a $40 million campaign for its latest product.
Touted as a pizza inside a pizza, "The Insider" contains a base crust, a layer of six types of cheese, another thin tier of dough, additional cheese and a topping.
The promotion began last week with a teaser campaign from Dallas-based TLP. The quarter-page ad appeared in USA Today with the words, "What is Pizza Hut trying to hide?"
Television spots revealing Pizza Hut's "hidden agenda" broke on Sept. 24. Media purchases include the Summer Olympics, network prime time, and Sunday afternoon and evening National Football League programming.
The first of three 30-second TV spots from BBDO, New York, is heavy on close-ups of a pepperoni pizza and its preparation.
Two additional commercials feature a British actor demonstrating metaphorically how Pizza Hut incorporates all the ingredients. In one, two handlers push an elephant (compliments of some special effects) into a telephone booth. The second spot shows four sumo wrestlers cramming into a photo booth. The ads end with the $9.99 price flashed on screen and the ongoing "The best pizzas under one roof" tagline.
Charlie Miesmer, vice chairman and senior executive creative director of BBDO in New York, said the accent of the British actor helps the spots "break through in a [Monty] Pythonesque way."
An idea for the campaign that did not pass muster was to cram the Riverdance troupe into an elevator while they were performing. "We wanted something that was funny but that was also a metaphor," Miesmer said, referring to the oversized elephant and Sumo wrestlers.
The chain's "Big New Yorker" pizza campaign last year used Donald Trump, Fran Drescher and Spike Lee, who exclaimed about the $9.99 price, "What do you think this is? Indiana?"
In related pizza news, the Dallas-based company learned last week that its initially successful lawsuit against Papa John's of Louisville, Ky., had been overturned by an appeals court. Although the latter's "Better ingredients. Better pizza." slogan was still termed "misleading," the court ruled that it was unlikely consumers would be confused by the claim, which amounted to mere "puffery."
PHOTO (BLACK & WHITE): Pie pipers: telling the inside story
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By J. Dee Hill and Kathleen Sampey

PIZZA HUT LOOKS TO INSIDER TO KEEP PIE-REINVENTION STRATEGY GOING

2006-02-16T12:14:00.000-06:00

Pizza Hut is betting on an inside-out strategy for its latest menu blitz that will introduce consumers to a stacked thin-crust pizza known as the Insider.
As part of the chain's continued strategy to repackage crust, sauce and cheese that has seen the creation of the Big New Yorker and Stuffed Crust pie, among others, Pizza Hut is set to unveil its latest entry in mid-September backed by an estimated $25 million ad budget weighted toward the Olympic Games.
Ads break Sept. 17, per one source. Pizza Hut declined to comment on the product introduction, but maintained no ads are planned for September.
Testing at $9.99, the pizza features a thin crust, sauce and six cheeses all sealed with another crust and finished off with more cheese and a choice of toppings. In a test market ad, via BBDO, N.Y., that ran in South Bend, Ind., a voiceover claims: "That's not inside, it's insane." Word is, though, that final creative will be less product-focused in favor of a "splashier" approach tied to a still-to-be-determined awareness-building publicity stunt.
Although Pizza Hut scored a hit with the Big New Yorker, it has been unable to duplicate its impact with ensuing launches like the Ultimate Cheese Pizza and the Edge. In the second quarter, same-store sales rose just 1%, versus 9% a year earlier during launch of the Big New Yorker. Nonetheless, parent company Tricon Global Restaurants is expecting same-store sales growth of 3-4% for the second half.
The latest intro slightly tweaks Pizza Hut's tagline of three years, "the best pizzas under one roof," by styling it, "another one of the best pizzas under one roof."
PHOTO (COLOR): Pizza Hut is playing an inside game now.
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By Theresa Howard

PIZZA HUT CASTS PUPPIES IN GLOBAL KIDS CAMPAIGN

2006-02-16T11:38:00.000-06:00

`Hut Mutts' ads to be customized in each market
A noble dog and his sidekicks ready to battle an evil nemesis take center stage in Pizza Hut International's latest ad campaign.
The Tricon Global Restaurants unit kicked off the first-ever ad campaign for its "Pizza Pooch & the Hut Mutts" promotion, a global kids' program that's ramped up in 50-plus foreign markets over the past nine months. Within a year the program should be in 90 markets.
Pizza Pooch leads a cartoon crew of dogs called "Hut Mutts," whose passion in life is eating Pizza Hut pizza. The crew -- which includes Pupperoni, Speedy and Topper -- spends most of its time retrieving stolen pizza from Evil Cat, its biggest enemy.
BBDO Mexico, Mexico City, created two 30-second commercials and two teasers -- part animated, part live-action. The spots, set in Pizza Hut restaurants, show children enjoying pizza in the company of adults who are oblivious to the animals' antics. Mexico was the first market to kick off the ads last month, with Australia, Brazil, Korea, Greece, New Zealand, Puerto Rico and several other Caribbean markets to follow soon.
COUNTRY CUSTOMIZATION Each country will customize the commercials to include the promotion of the month, such as Pizza Pooch toys, coloring books, special placemats, and, eventually, product giveaways such as customized skateboards, said Robert Turtledove, VP-marketing, Pizza Hut International. The U.S. is evaluating whether Pizza Pooch fits into its current marketing strategies, he said.
The Tricon unit works with BBDO in 70% of its markets -- including the U.S. Local agencies will do voice-overs to produce local language spots where applicable.
U.K. ORIGINS The Pizza Pooch program originated as a short-term promotion in the U.K. two years ago. Based on its success there, Pizza Hut International decided to expand the promotion worldwide because of the importance of the kids' market, Mr. Turtledove said.
"We have to build a franchise with kids now, because they take their habits with them to their teen years and adulthood," he said. "Pizza is kids' favorite food, so we're already one leg up on the competition in some places -- but there are markets that have never heard of pizza, and we need to reach them."
The program is now in many overseas markets, including several European countries, Latin America, Korea, Singapore, Malaysia and the Philippines. It's aimed at kids ages 8 to 12, a younger group than Pizza Hut targets domestically.
"Even though there are 4,000 Pizza Huts in 90 countries, the brand is a little younger outside the U.S. so we're aiming for the early adoption stage," Mr. Turtledove said.
Tricon's business outside the U.S. has been the company's leading profit contributor lately -- the unit has posted eight straight quarters of 20% or better growth in operating profits. Tricon plans to open 750 new stores outside the U.S. this year, with non-U.S. profits expected to jump 18% to 20%.
Pizza Hut has been the strongest performer among Tricon's three brands (Kentucky Fried Chicken and Taco Bell are the others).
ADDING MARKETS Mr. Turtledove said he anticipates many more markets will use the ads after he presents them to Pizza Hut International's country marketing managers in Singapore at the end of the month.
"They want to see them first, but based on everyone else's reactions, I know they'll want it," he said, noting the ads and promotion will run indefinitely. "We want to create a loyalty to the characters, not offer a proposition that has a six-month shelf life."
PHOTO (COLOR): No Chihuahua: Tricon tries puppy power.
PHOTO (COLOR)
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By Margaret McKegney

PIZZA HUT LINKS AOL FOR $$$ GIVEAWAY

2006-02-16T11:37:00.000-06:00

Pizza Hut, returning for its second interactive play around its Big New Yorker entry, will partner with America Online for a four-week promotion that offers up cash as the latest pie topping.
For four weeks starting July 24, Pizza Hut will issue $30 PIN-coded certificates with a $9.99 purchase of the Big New Yorker redeemable for such back-to-school goodies as clothing, backpacks, CDs and DVDs.
The deal follows interactive partnerships by consumer products giants, including Coca-Cola's three-year pact with AOL (Brandweek, April 3) and Pepsi-Cola's link with Yahoo! for an electronic iteration of its Pepsi Stuff continuity program.
Pizza Hut commemorated the one-year anniversary of its oversized Big New Yorker pie in January with what operators said was a highly successful Web program linked to CDNow. The deal provided buyers of the Big New Yorker with a customized CD.
The late-summer program dubbed "Shop online for the stuff you want," grants consumers a code to buy $30 in goods redeemable in a dedicated area on AOL. The offer will be supported via the Web and a 30-second national ad from BBDO, N.Y., that plays up product value and the $30 giveaway as an AOL shopping spree.
Fast feeders, in general, have had limited success on the Web. Burger King recently considered-but shelved--an on-line auction that would have issued "Burger Bucks" redeemable online for BK treats and licensed goods with entertainment and beverage partners. Despite issuing a questionnaire to a number of promo shops, BK bagged the project due to concerns over high costs, maintenance and effectiveness, a source said.
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By Theresa Howard

KFC TAPS PIZZA HUT PLAYBOOK

2006-02-16T11:36:00.000-06:00

LOUISVILLE, KY. -- KFC is proceeding quietly with a 300-store delivery experiment as an extension of its strong off-premises consumption component.
Currently, the fried-chicken segment leader is testing delivery in several concentrated markets, including Las Vegas, four Southern California counties and the chain's home base here. KFC has no imminent plans to make delivery a national effort, according to Michael Tierney, a company spokesman.
However, Tierney did not say whether additional marina in KFC's 5,231-unit domestic system are candidates for adoption of the phone-order and delivery service.
"We do a lot of business through our drive-thru. Delivery is a natural sort of extension in the markets where it makes sense," he said, adding that customers who think of KFC products as a home-meal-replacement option are the best prospects for delivery.
KFC, sister chain to home-delivery specialist Pizza Hut, did not divulge how long it had taken to expand delivery to some 300 locations. Direct-mail marketing of the service option was begun only recently by the chicken chain in at least some of the participating markets.
Drivers use special insulated bags to help keep the hot foods hot during transit. KFC does not offer a delivery time guarantee, such as Domino's Pizza once tried but dropped in 1993.
Where the delivery option exists, it is being marketed through direct-mail brochures that contain coupons and list participating locations and their phone numbers. With a cover showing a cartoon Colonel Sanders bursting through a pizza while holding a cell phone and a bucket of chicken, the brochure bears a new "KFC Delivery" logo that includes a speeding bucket on wheels. "Need a break from pizza? Call KFC Delivery," the Colonel says.
In the Southern California market, the brochures list 49 participating KFC units and state that a $7.50 minimum and $1 delivery charge apply to phone orders. Delivery is limited to unspecified geographical areas and time periods at "lunch & dinner."
Of the 16 coupons included in the booklet, 14 offer meals of various sizes and are for use by dine-in, carryout or delivery customers; two coupons are for delivery orders only and offer a free Pillsbury-brand Double Chocolate Chip Cake with any purchase of $15 or more.
Marketing of delivery also is being done on KFC's Web site with the invitation to order online. Customer response to online ordering has been negligible so far, Tierney said.
Though he did not disclose delivery-sales volumes, he said the vast majority of delivery customers are ordering by telephone calls to participating local KFC stores. "Consumers still like to hear a voice when they order delivery. We'll have to see in the long-term how comfortable they are ordering on the Web," Tierney said.
No other national chicken chains are known to be testing delivery. Chick-fil-A, the 900-unit Atlanta-based sandwich stalwart, offers some limited-delivery options of bulk orders by businesses, along with delivery on foot or via wheeled carts within shopping malls where units are located.
"We have no delivery program like the pizza chains," said Don Perry, Chick-fil-A spokesman. "From a feasibility standpoint, it isn't that practical for us to get into an across-the-board setup."
Atlanta-based AFC Enterprises' sister concepts, Popeyes Chicken & Biscuits and Church's Chicken, do not have a delivery program and are not planning to start one, according to spokeswoman Ellen Hartman.
Robert Golden, an industry consultant with Chicago-based Technomic Inc., said, "I think there is opportunity for delivery if they can get the food to transport. Fried foods are perceived not to transport too well because they can lose their crispiness."
The biggest negatives today regarding delivery of any kind are that drivers are hard to find, and gasoline and insurance costs are very high, Golden observed. "There are issues about customers not wanting to pay the charges," he said.
However, chicken delivery could work in selected markets, particularly since the product is well accepted for off-premises consumption, like pizza and Chinese food, Golden added.

A brochure for KFC's new delivery program depicts Colonel Sanders suggesting customers order chicken instead of pizza.
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By Carolyn Walkup

PIZZA HUT BRINGS BACK ITS EDGE: $25 MIL SUPPORTS NEW VERSION

2006-02-16T11:35:00.000-06:00

Effort comes as chain refocuses on its products
Pizza Hut once again is going out on the Edge.
The Tricon Global Restaurants unit breaks a $25 million ad campaign May 4 with a trio of new spots promoting its improved Edge pie. The effort, from BBDO Worldwide, New York, expands on the original "Proselytizer" campaign.
One ad is product-focused, emphasizing "cheese pulls." Another stars a postal worker who exclaims he's been to the edge and back.
The idea behind the campaign is to capture the spirit and energy of the 18-year-old in all of us, as well as the universal appeal of pizza, said Randy Gier, chief marketing officer at Pizza Hut. The spots continue the chain's "Best pizzas under one roof" tagline.
The campaign introduces an edgier Edge, the rimless pizza originally introduced in 1997. Although the popular limited-time offer sold well, Mr. Gier said customers complained about product quality. The new version has a sturdier, still-thin crust and more cheese that stays hotter longer. It also features a blend of flavorings, including basil, garlic, oregano, rosemary and thyme, with a sweet sauce.
If customers like the improved Edge, it could earn a place on the permanent menu, said Mr. Gier.
BUILDING MOMENTUM With the new Edge, Pizza Hut is trying to build on the momentum it gained with its $80 million Big New Yorker pizza launch last year. Driven by sales of that new product, the No. 1 pizza chain reported a 6% increase in same-store sales for the quarter ended Dec. 25, its 10th consecutive quarter of growth. The chain's 1999 total sales were up 4.4% to $5 billion, although it trimmed units by 4% to 8,084 stores, according to Technomic. Average store volume rose 8% to $696,000.
Those positive results weren't enough to eclipse the rapid growth at No. 4 pizzamaker Papa John's International. Despite losing a lawsuit (now under appeal) with Pizza Hut over its comparative ads that claim "Better ingredients, better pizza," the upstart added 20% more units, to 2,254, and sales jumped 23% to $1.4 billion. Average store volume, at $754,000, also beats Pizza Hut, in part, because of its perceived better quality, said Bob Goldin, exec VP at Technomic.
Pizza Hut was "promotion and new-product driven," he said. "They were good at getting trial with good new products, but they didn't sustain well."
But Mr. Gier said the company has put significant emphasis on product improvement.
"In the past, what we did was marketing as Band-Aids," he said, adding, "We did a lot of promotion like all other quick-service restaurants." But that's changed. "There's a philosophical change about how we go to market. We are more about the pizza now."
MORE FOR THE MONEY Facing franchisee discontent, the company shifted its focus from delivery and takeout in late 1998. It invested in new equipment, training and offered larger topping portions. "People are getting more ingredients for the money," said Mr. Gier. Last year, the company launched a new look and logo and this year continues work to rebuild and reface older units.
PHOTO (COLOR): Edgier pie: TV spots for Pizza Hut's Edge continue the restaurant chain's "Best pizzas under one roof" tagline.
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By Kate MacArthur

PIZZA HUT SET TO RECOVER ITS LOST EDGE

2006-02-16T11:34:00.000-06:00

Pizza Hut will resurrect "The Edge" pizza next week, backing its return with an estimated $15-20 million in national TV,, print and radio ads.
The product, which debuted in 1997 but fell off menus within a year, returns as a limited-time offering in Hut's ongoing quest to reinvent the menu around its "best pizzas under one roof" claim.
Edge has remained available in many stores but not systemwide, and has not received media support since the intro.
The crustless pizza hits stores April 30, flagged by an FSI the same day. Three 30-second TV ads, via agency BBDO, N.Y, break May 4, with radio following May 8. A key product premise stems from Pizza Hut's informal research showing that 20% of respondents do not eat the pizza crust.
Creative in the two spots reveals a mailman and schoolboy exulting over "toppings on top of toppings; toppings next to toppings with no outer crust!"
A third spot focuses on the pizza itself, playing up the abundance of toppings. Pepperoni, Italian sausage, red onions, green peppers, mushrooms and tomatoes are served between two layers of cheese.
A top layer of cheese is part of some flavor enhancements that include a reformulated Italian herb seasoning and thinner, crispier crust.
Edge will sell for $9.99 for medium pies and $11.99 for large.
One franchisee said the product skews toward the chain's dine-in business and should "do all right as long as our name is getting out there."
The chain has claimed dine-in to be a priority, although it has largely consigned support to delivery.
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By Theresa Howard

COMMUNITY MATTERS PIZZA HUT LAUNCHES BOOK IT! BEGINNERS PROGRAM

2006-02-16T11:33:00.000-06:00

WICHITA, KAN. -- Carrying a decade and a half of success with its nationwide grammar-school literacy enhancement program called BOOK IT!, Pizza Hut Inc. on March 6 launched BOOK IT! Beginners, a parallel reading encouragement program that will reach 1.5 million preschool and prekindergarten children across the nation.
Running through March and April, the program encourages reading aloud by providing some 24,000 preschool facilities with interactive classroom charts and materials to track the titles of books read to students. Preschool teachers are asked to read aloud at least an hour each week, and parents are invited to participate.
"Through our contact with the Department of Education we found there's need for reading readiness among very young children in particular," said BOOK It! Beginners Program director Eunice Ellis.
BOOK IT! Beginners 2000 posters feature cartoon squirrels reading books in trees. The interactive element is provided by acorn and leaf cutouts that get pasted onto the trees as books are read aloud. Children also get Pizza Hut certificates redeemable for one-topping Personal Pan Pizzas and fuzzy stickers based on the cartoon characters.

AL RESTAURANTS DIVISION OPERATES 456 RESTAURANTS.

2006-02-16T11:32:00.000-06:00

Fox had served as vp-marketing at Sony's recently shuttered 989 Studios, which created PlayStation software, and with whom Pizza Hut has partnered for holiday promotions for several years. Fox is primarily responsible for ushering new products to market and brand management.
Pizza Hut last month spent $15 million behind the introduction of the Ultimate Cheese Pizza, a six-cheese blend that borrows equities from existing products, with hand-tossed and sweeter, Big New Yorker varieties. Ads, via BBDO, New York, carry the "Best Pizzas Under One Roof" theme.
Ultimate Cheese was the first new entry to follow the Big New Yorker, which bowed just over a year ago. The latter product helped move same-store sales 9% in 1999 and 4% in the fourth quarter alone, with little dedicated ad support.
Under the new structure, Matteson will report to Fox, who in turn reports to Gier (who was imported two years ago from sister chain, KFC.)
Separately, in yet another personnel loss to a burger giant, Pizza Hut marketing research director John Sanfacon has exited for a position at McDonald's, where he is working on new products for it's Donatos Pizza division.
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By Theresa Howard

PAPA JOHN'S BLASTS RIVAL PIZZA HUT'S AD IMAGERY

2006-02-16T11:30:00.000-06:00

COMMERCIAL USES FOOTAGE FROM SMALLER CHAIN'S SPOT
Papa John's is hopping mad over a commercial from rival Pizza Hut that uses footage from the smaller chain's advertising without permission.
``It is extraordinarily upsetting
. . . It is an infringement,'' said Syl Sosnowski, VP-marketing for Papa John's. He said the chain is exploring all options, including a lawsuit: ``It's all in our attorneys' hands right now.''
A Pizza Hut spokesman said the chain has not been contacted by Papa John's about pulling the spot, adding, ``We will address that if it happens.'' But, the spokesman added, ``Our legal department would never have let that ad out of the building if they had any concerns about it.''
WAR ESCALATES
The commercial battle is just the latest in an ongoing war between Pizza Hut, which leads the $21 billion restaurant pizza category, and fourth-ranked but fast-growing Papa John's.
Pizza Hut filed a lawsuit in federal court in Dallas six months ago charging Papa John's with unfair competition and deceptive advertising. The suit, which has not been resolved, seeks $12.5 million in damages and legal fees. It followed complaints by Pizza Hut to the National Advertising Division of the Council of Better Business Bureaus. As a result of those complaints, Papa John's tweaked an ad about tomato sauce to settle the dispute.
Now, Pizza Hut is turning the tables, taking direct aim at its smaller rival in advertising. The new Pizza Hut commercial claims Papa John's doesn't use fresh dough for its pizza. The spot begins with shots of Papa John's delivery trucks and includes grainy footage of Papa John's founder-CEO John Schnatter declaring, ``We never use dough made the same day.''
The commercial broke Jan. 15 in Dallas and Atlanta, and has since been launched in St. Louis. It was created by an undisclosed regional agency, not Pizza Hut's national shop BBDO Worldwide, New York.
OUT OF CONTEXT
The footage of Mr. Schnatter was taken from a Papa John's spot that began airing last month, Mr. Sosnowski said, adding that the snippet was taken out of context by Pizza Hut. The Papa John's commercial shows Mr. Schnatter strolling in an orchard with his daughter as he tells her about making pizza.
``You'd never drink wine the day they crush the grapes or eat a green banana. And that's the secret to Papa John's traditional dough,'' he tells the girl. ``We give the yeast several extra days to work its magic. We never use dough made the same day like some folks.''
One advertising attorney said in his 30 years of practice he can't remember ever seeing a spot in which a marketer uses such footage from a rival's ad.
``I don't know if I've ever seen the use of a CEO of a competitor in one's advertising without their permission,'' said Leonard Orkin of Kay Collyer & Boose.
Papa John's, the fastest growing pizza chain in the slow-growing business, started the competitive ad battle in 1997 with an ad featuring Pizza Hut founder Frank Carney touting his new role as a Papa John's franchisee. The campaign, from Fricks/Firestone, Atlanta, is themed ``Better ingredients. Better pizza.''
Papa John's spent $15 million on measured media in the first nine months of 1998 compared to Pizza Hut's $95 million, according to Competitive Media Reporting.
`BULLYING THE SMALLER GUY'
Mr. Sosnowski said he believes Pizza Hut is using its new commercial in part to divert Papa John's attention and resources from its core business. ``They don't care whether they will win or not. It is their way of bullying the smaller guy,'' he said.
Countered Pizza Hut's spokesman: ``If you want to call it aggressive, that's your decision. We feel we have to take remedial action to set the record straight with consumers.''
PHOTO (COLOR): Doughboys battle: Pizza Hut's spot (above) includes footage of Papa John's founder, taken from a Papa John's commercial (l.).
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Louise Kramer

NPC AGREES TO ACQUIRE 99 TRICON PIZZA HUTS

2006-02-16T11:28:00.000-06:00

PITTSBURG, Kan. -- In a move that some on Wall Street called "overdue," Pizza Hut franchisee NPC International agreed to acquire 99 Pizza Hut units from parent Tricon Global Restaurants Inc. for undisclosed terms.
NPC, Pizza Hut's largest franchisee with 643 units in 24 states, said the acquired units are scattered throughout Alabama, Florida and Georgia. Sixty of the restaurants are the concept's traditional red roofs, while the remaining 39 are delco [delivery and carry-out] sites. NPC said the stores generated nearly $58 million in sales last year.
"This is the first acquisition we have made under the Tricon umbrella," said Jim Schwartz, NPC's president and chief operating officer. "We wanted to be fairly judicious and see how they were approaching their refranchising program. We took our time to make sure there weren't any open issues that would make our shareholders uncomfortable."
The transaction is expected to close by mid-February.
"I think this is a terrific acquisition," said Stephen Spence, a restaurant analyst with Southwest Securities Inc. in Dallas. "It is what we have waited for. NPC traditionally has grown through acquisitions, but the company has been shrinking a bit lately because it has closed a few underperforming stores and remodeled others."
Before that deal, NPC's most recent acquisition was in June 1997 for 52 Pizza Hut units.
"They have shown in the past that they are able to grow the operating margins [of the stores they acquired]," said Andrew Speller, an analyst with A.G. Edwards in St. Louis. "Typically, they buy stores with lower margins, and then they are able to get margins up to the company's average over time."
NPC grew to become the largest Pizza Hut franchise by purchasing discount-priced restaurants and transforming them into strong-performing stores. Overall, the company acquired some 300 units between 1996 and 1997, both from Pizza Hut Inc. and from other franchisees in the system. Spence said NPC improved operating margins at these units through its strong management, facility upgrades and new computer equipment.
Troy Cook, NPC's chief financial officer, declined to report the average operating margins of the 99 units the company plans to acquire from Tricon. But Cook said NPC's average operating margin is about 17- to 18-percent per store.
NPC emphasized its intent to focus on the Pizza Hut brand last year when the company sold its Romacorp subsidiary, which operated 47 Tony Roma's restaurants and franchised 147 units. That sale was structured as a recapitalization.
Although NPC divested its majority interest in Tony Roma's last year, the company raised some eyebrows on Wall Street when it made no Pizza Hut acquisitions.
But NPC said it had compelling reasons last year to hold off on new Pizza Hut purchases, especially because Louisville, Ky.-based Tricon just had been spun off from PepsiCo in October 1997.
Schwartz, however, said: "People should not forget that we acquired some 300 units in about a year and a half, and we had to make sure those stores were running as they should be running before making any more acquisitions. That is why our timeline may seem longer to some."
The acquisition deal with Tricon includes 14 units in Pensacola and 16 in Panama City, Fla.; 26 in Mobile, Ala.; and 22 in Augusta and 21 in Savannah, Ga.
"It [Pizza Hut] is definitely a growth vehicle for them," Speller said. "We have been anticipating this since the recapitalization of Tony Roma's last year when NPC stated their intention for growing Pizza Hut. We have been waiting for an acquisition, and this is it."
Schwartz said NPC -which already has a strong presence in the Southeast will not have to add any additional divisional or regional management support because it will fold the new units into its existing field infrastructure.
Following its acquisitions over the past several years, NPC initiated an aggressive reimaging strategy to improve its delivery presence and update its dine-in and delco restaurants. Schwartz said the newly acquired units would be remodeled using a similar strategy, but he declined to comment on the specifics of the reimaging plan until the deal is closed.
NPC's earnings for the third quarter ended Dec. 29 are scheduled to be released at the end of January.
For the company's second quarter ended Oct. 28, NPC reported net income of $4.69 million, a 1-percent decline vs. the income for the year-earlier period. Revenue from the company's Pizza Hut operations hit $90.41 million during the quarter, a decrease of 1.8 percent over the same period of the prior year.
NPC's earnings in the second quarter were negatively impacted by the divestiture of Romacorp, while quarterly revenues declined because of the 30-plus Pizza Hut restaurants the company closed during the quarter, according to Speller. He added that unusually high cheese prices also affected the company's operating margins.
"The acquisition will give them near-term and long-term earnings growth, which in turn should help move the company's stock price as people see growth in earnings per share," Speller said.
Spence added that a recent drop of 20 cents per pound in cheese prices most likely also would help boost NPC's future earnings.
NPC said it would continue to look for additional acquisition opportunities over the next 12 months.
Said Schwartz, "The Pizza Hut brand is performing well today, and we feel good about continued prospects with our friends at Pizza Hut and Tricon."
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By Amy Zuber

PIZZA HUT'S DATABASE MAKES ITS COUPONING MORE EFFICIENT

2006-02-16T08:47:00.000-06:00

Tricon Global Restaurants' Pizza Hut used database marketing to trim 650 disparate promotional offers to just 16. The result: Couponing profitability increased 21%. And that wasn't the only benefit for the fast-food giant.
``We've cut our spending by 40% and increased coupon redemption by about 50%, and our coupons are consistently more profitable than they used to be,'' said Claude Caylor, VP-calendar and media.
Broadwell Marketing Group, Dallas, handles all aspects of coupon marketing for Pizza Hut. Broadwell was able to build a strategic approach for the marketer with database technology as the foundation.
Broadwell conducted a national bar coding study in several Pizza Hut locations and over time modeled the data with customized software. That provided the necessary intelligence to choose the right media for each market and the best offers to drive response.
One key finding was offers that gave more variety and amount of toppings worked better than price cutting overall. ``Deeper discounting doesn't necessarily drive any more customer response,'' said Broadwell Exec VP Tom Cole. ``I think what Pizza Hut was able to learn was how to focus more on being a good value vs. a deep discounter.''
Pizza Hut consolidated its direct response marketing in 1995 from 10 field divisions, with as many agencies, to a centralized approach with Broadwell as its sole agency. Mr. Caylor led that consolidation. The move gave the nation's largest pizza chain both efficiencies in media buying on a national level and the ability to track data in one place for more than 50 million customers currently residing in the database.
PHOTO (COLOR): Working smarter: Pizza Hut is using its database to target coupons more effectively.
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Carol Krol

NEWS KONING BECOMES LARGEST PIZZA HUT MINORITY FRANCHISEE

2006-02-16T08:41:00.000-06:00

MIAMI -- The newly formed company Koning Restaurants International here has become Pizza Hut's largest minority-owned franchisee, with more than 90 stores in southern Florida. It was created by Al Salas, a Cuban-American who went on to become the highest-ranking Hispanic executive for Pizza Hut, and Albert Galsky, a Peruvian entrepreneur. The pair acquired the stores in Broward, Miami-Dade and Monroe counties from Dallas-based Pizza Hut Inc. The franchisee plans to expand into other Florida markets and the Caribbean. Before becoming a franchisee, Salas rose through the ranks at Pizza Hut, where he most recently served as vice president of operations.

TECHNOLOGY PIZZA HUT EMBRACES E-COMMERCE WITH E-STORE

2006-02-16T08:40:00.000-06:00

COLUMBIA, Md.-- Pizza Hut of Maryland Inc. has knocked down electronic commerce barriers. along with the perceptions that the Internet can be vexing to operators, by becoming the first operator in Tricon Global Restaurants' system to take advantage of a new Web-based food-ordering system.
The 51-unit franchisee, based here, last month was the launch pad of a Web-based food purchasing system undertaken by the Foodservice Purchasing Cooperative, the 800-plus member coop of KFC, Taco Bell and Pizza Hut franchisees based in Louisville, Ky.
Developed and maintained for FSPC by Instill Corp. of Palo Alto, Calif., the e-store platform allows foodservice operators to improve order accuracy and benefit from the lower communications costs associated with Internet-based systems.
"My job is to make sure is that we can open our doors and sell our product," said Pizza Hut of Maryland vice president John Schulze. "We can now go online anytime, and as long as an order is entered prior to the loading of the truck, it will come in as ordered."
Under the e-store setup, Internet-based orders placed by Pizza Hut of Maryland are transmitted in real time to Instill's Web server. Purchase orders are then confirmed and sent to the operator's new distributor, PYA Monarch Chain Distribution Inc. of Greenville, S.C.
Schulze also anticipates a lot less headaches with respect to incorrect orders. "Previously, if there was a foul-up, I had to rent a truck and drive to Manassas, Va.," the locale of the closest AmeriServe warehouse.
And consistent with the Efficient Foodservice Response initiative, the e-store platform allows operators to move costs up the supply chain to suppliers. With e-store, foodservice distributors pay Instill a onetime setup charge and a fixed transaction cost of about $2.50 per order. Furthermore, e-store data and transactions are password protected, and the program can be accessed from any Windows and Macintosh computer.
Industry observers have maintained that doing business through the Internet changes the way companies work, but that has not been the case at Pizza Hut of Maryland Inc.
Schulze explained that the company for years has made use of computer-based purchasing and still has Pizza Hut ingredients delivered two times per week. "To us, the only change to the 'Net' is simply just a different-looking screen."
"Coop members can now use one direct order-entry method," hailed Jerry Baldwin, vice president of sales and marketing for PYA Monarch.
"We can serve chains on a national basis and not have to install software on their computers. That was a huge issue for us," Baldwin added.
Instill vice president of marketing Andy Cohen said that e-store will gradually be rolled out to other co-op members and will work with other foodservice distributors with their implementations.

NEWS/THE FOODSERVICE SCENE AS DAILY REIMBURSABLE: PIZZA HUT OPENS NEW COMMISSARY KITCHEN

2006-02-16T08:39:00.000-06:00

Pizza Hut Express formally debuted its new Commissary Kitchen concept to school operators this summer at the ASFSA national conference in Anaheim, CA.
The concept provides for higher volume production and satellite delivery to other schools. It has been in previous test at Corona Norco School Dist., CA.
Next step: Crown Point School Dist., IN, is set to install the concept this fall, according to fsd Don Duquette.
"We're going to offer Pizza Hut as part of our reimbursable meal, and offer it daily in every school. We anticipate a 25% increase in participation." The equipment costs will run around $85,000, including adding a delivery truck, and Duquette expects to make up to 300 pizzas a day, divided into eight or 10. "We sent two managers and myself to Pizza Hut headquarters for a four-day training session this month. Corona Norco made one variety but we're hoping to make several varieties of pizza at the commissary location in our high school. We'll probably stick with pepperoni to satellite to the other schools." An anchor: Duquette also will use Pizza Hut as an anchor for the district's signature stations.
"Once we have a major, we can use it to promote our entire program. And it will work well for catering and other functions."
Crown Pt. has 6,400 enrollment in 11 schools, and has a free and reduced qualifying rate of under 10%.

NEWS BATTLE HITS COURT: PIZZA HUT FILES SUIT AGAINST PAPA JOHN'S

2006-02-16T08:38:00.000-06:00

DALLAS -- Segment leader Pizza Hut turned up the heat on the pizza wars by slapping Papa John's with a federal lawsuit that accuses the country's fourth-largest pizza chain of misleading consumers with false advertising.
In the suit Pizza Hut alleges that Papa John's dough and sauce are not so fresh as some of its ads suggest. The Dallas-based chain also challenges several of Papa John's marketing claims, including its "better ingredients, better pizza" slogan. Pizza Hut further contends that Papa John's disparages Pizza Hut's tomato sauce in its advertising. The lawsuit, which was filed in a federal district court here, seeks unspecified damages.
Karen Sherman, a spokeswoman for Louisville, Ky.based Papa John's, characterized the lawsuit as a "PR move" on the part of Pizza Hut. But John Schnatter, Papa John's chief executive, conceded in an interview on CNBC that some of the ingredients the company uses in its pizzas are not fresh. He said the company uses canned tomato sauce and canned mushrooms.
Pizza Hut said the goal of the lawsuit is to set the record straight.
"They [Papa John's] imply that their sauce is fresh when it is canned," said Pizza Hut president Mike Rawlings. "They say their dough is 'fresh' and 'better,' but it is made offsite and shipped to the restaurants. That defies common sense. We want the truth to be told."
However, Sherman added that despite two recent complaints from Pizza Hut, the National Advertising Division of the Council of the Better Business Bureau gave a nod of approval to Papa John's "better ingredients, better pizza" slogan.
"We have been spending our dollars on giving consumers a better pizza, and they have spent their money in the courts," Sherman said. "But we think the pizza wars are not won or lost in the courtroom but in the marketplace."
Mitchell Shapiro, an attorney specializing in franchise law and a partner with Foley & Lardner in Los Angeles, said he views the lack of action by the Federal Trade Commission -- the government body that regulates commercial advertising -- as significant.
"When a major company engages in fraudulent or deceptive advertising, the Federal Trade Commission usually steps in to stop it," Shapiro said. "If the FTC has not become involved, that certainly tells me something."
Shapiro said Pizza Hut could be seeking publicity or attempting to discourage Papa John's from being aggressive in its advertising.
"Pizza Hut is not interested in the money," said Marty Fern, an attorney who specializes in intellectual property law and a partner with Loeb & Loeb in Los Angeles. "What they are really interested in is stopping Papa John's advertising."
He added, "The issue before the court is: Are these statements from Papa John's fair competitive advertising, or are they false statements that are actionable under federal and state advertising laws?"
Fern said Pizza Hut would have to prove that Papa John's "better ingredients, better pizza" claim is false and not merely "puffery" or an exaggerated statement about quality. Fern said courts tend to allow general claims of superiority in comparative advertising because they are difficult to disprove.
But he said the courts have taken action in the past regarding more specific advertising claims. For example, if Pizza Hut can establish that Papa John's ingredients are not fresh, Fern said, the court could force Papa John's to modify its ads.
Rawlings said Papa John's ads are not cutting into Pizza Hut's sales. "The fact is that we are not being hurt by Papa John's," Rawlings said. "Last quarter our same-store sales were up 9 percent."
He added: "The lawsuit takes a long-term perspective. It is our job to protect our franchisees, who for the most part are small-business owners working hard to drive the equity of the Pizza Hut brand. If we sit idly by, we know that eventually consumers will start to believe the mistruths from Papa John's."
And Pizza Hut has a different take on the two recent NAD decisions. Rawlings said although the division recommended in March that Papa John's alter its ads -- with a tag that specifies its better pizza claim relates only to Pizza Hut's traditional and thin-crust pizzas -- he said he would like to see further action.
"We think there is a fundamental issue that the court system has more power to deal with than the NAD," Rawlings said. "They [Papa John's] claim that they have better ingredients and a better pizza, but they don't. They can't make the claim when it is not the truth."
PHOTO (COLOR): Pizza Hut is accusing Papa John's of using canned tomato sauce and canned mushrooms in their pizza.
~~~~~~~~
By Amy Zuber

PIZZA HUT HAULS RIVAL TO COURT OVER ADS

2006-02-16T08:37:00.001-06:00

The pizza wars landed in federal court last week.
Industry leader Pizza Hut filed suit in U.S. District Court in its hometown of Dallas against its fiercest rival, fourth-ranked Papa John's International, over claims of deceptive advertising.
The suit is the latest in a series of skirmishes between the two chains that shows no signs of abating.
A spokesman for Pizza Hut, a division of Tricon Global Restaurants, said the company is not ruling out competitive ads of its own. A current 30-second TV spot for a new product called Fiesta Taco Pizza subtly jabs at Papa John's, showing a manager of ``P.J.'s Pizza'' looking on forlornly as his staff defects to the Pizza Hut across the street.
Pizza Hut also last week distributed a video press release showing how Pizza Hut uses fresh mushrooms while Papa John's uses canned. The video included footage of Papa John's trucks pulling out of a dingy industrial complex in upstate New York where it picks up pizza dough.
NEW ADS ON THE WAY Coming up for Pizza Hut is a new campaign for its best-selling Pan Pizza. It is unclear whether TV ads, from BBDO Worldwide, New York, will have a competitive slant. The chain is also testing a new pizza called the Big New Yorker.
In its lawsuit, Pizza Hut is challenging Papa John's ad theme, ``Better ingredients. Better pizza,'' and what it claims is a ``deceptive implication'' that Papa John's uses ``fresh'' tomato sauce while competitors do not. Fricks/Firestone, Atlanta, is the agency.
Pizza Hut is seeking an injunction against the ads, along with unspecified damages.
``We find their lawsuit to be frivolous and without merit,'' a spokeswoman for Papa John's said. ``We're choosing to make our statement in our marketplace and with our customers rather than in the courts.''
In response to complaints from Pizza Hut last spring, Papa John's voluntarily revised a TV spot to show sauce being poured from a can rather than tomatoes being plucked from a vine. The National Advertising Division of the Council of Better Business Bureaus last month called the change an ``adequate clarification.''
Pizza Hut spent $147 million on measured advertising last year, dwarfing Papa John's $16.6 million budget, according to Competitive Media Reporting. Pizza Hut has 7,200 restaurants in the U.S., while Papa John's -- the fastest-growing chain in the estimated $21 billion pizza segment -- has 1,700. Domino's Pizza is No. 2 and Little Caesars Pizza is No. 3 in the highly competitive segment of the restaurant business.
SPENDING TO DOUBLE Papa John's is expected to double its ad spending next year, an executive with the chain said. The chain reported net income of $9.4 million for the quarter ended June 28, up 49.2% compared to the same period the prior year.
Pizza Hut, which suffered a downturn in business last year, is showing signs of improvement, observers said. For its second quarter ended June 13, Pizza Hut's same-store sales were up 9% from the same period a year ago.
``They are doing a better job in a more focused operation,'' said David Trossman, a restaurant analyst with B.T. Alex. Brown. ``The question is, can they sustain it?''
John Correll, a pizza industry consultant, noted Pizza Hut was the first big player to take jabs at competitors, and cited a TV spot in the early 1990s poking fun at Domino's when Pizza Hut launched home delivery, a service that put Domino's on the map. ``What's kind of amusing is that Pizza Hut was basically the originator of competitive derogatory advertising,'' he said.
PHOTOS (COLOR): Rancorous rivals: A Pizza Hut spot seems to take a jab at Papa John's.
~~~~~~~~
By Louise Kramer

NEWS/THE FOODSERVICE SCENE UNDER NEWLY-FORMED COMPANY PIZZA HUT SPINS-OFF PIZZA PACK PROGRAM

2006-02-16T08:37:00.000-06:00

Pizza Hut has outsourced product distribution of its Pizza Pack program to J.O.Y. Foods, Inc. in Dallas, TX-a minority and woman-owned distribution company recently founded by Joy Wallace, a former Pizza Hut executive who originally developed the concept.
"When Pizza Hut suggested that I take over this program, I jumped at the opportunity," says Wallace, pres. and ceo of J.O.Y. Foods, Inc.
Next level: "The company gave me the opportunity to develop this program and grow it into the successful business it is now. I'm looking forward to taking this program further."
Currently, the Pizza Pack program is in over 285 school districts, and contains all items necessary for schools to make their own Pizza Hut pizzas in the cafeteria. The Pizza Pack kit includes dough, sauce, cheese and toppings, and meets USDA guidelines for the Natl. School Lunch Program. "Joy managed the Pizza Pack program during (the past) two years, and was the obvious person to whom we wanted to outsource this great program," says Mike Miles, sr. v.p. for concept development and franchise for Pizza Hut. The distribution outsourcing agreement underscores parent Tricon Global Restaurant's decision to focus Pizza Hut on its core commercial business.

PIZZA HUT ADS FOCUS ON FOOD AND RESTAURANTS

2006-02-16T08:32:00.000-06:00

PHOTO (COLOR):
`BEST PIZZAS UNDER ONE ROOF' THEME REPLACES SINGLE-PRODUCT CAMPAIGNS Pizza Hut is selling the whole store in a new ad campaign that returns attention to dining in after a long focus on takeout and delivery.
Rather than a single product, the chain's latest effort promotes three signature pizzas -- the Edge, Stuffed Crust and Sicilian -- and its restaurants, too. This is a strategic shift, at least for now, away from splashy product launches.
Later this year or early in 1999 Pizza Hut will launch a major new pizza product, said an executive close to the chain. Until then, the new tagline will be "The best pizzas under one roof."
Also, in a move similar to that undertaken by burger giant McDonald's Corp., the pizza leader is shifting ad dollars to local from national media.
`DO OUR OWN THING' "They've given local markets an opportunity where we can do our own thing and have our own message, and not be dictated by network" TV advertising, said the executive, who works in a local market. "They realize not all problems can be solved with national efforts. There is a need for regional or even localized programs that can address regional tastes."
The ad expenditure is evolving into an even split between national and local TV, with specific weeks set aside for local efforts, the executive said.
Pizza Hut spent $147 million in measured media last year, with $51 million, or 35%, of that on spot TV, according to Competitive Media Reporting.
Pizza Hut officials were unavailable for comment at press time.
RIVAL MAKES GAINS The unit of Tricon Global Restaurants leads the competitive $25 billion pizza chain market, but it has been the target of negative comparative advertising from No. 4 player Papa John's International. Pizza Hut posted U.S. systemwide sales of $4.7 billion last year, down 4% from 1996.
According to industry statistics, pizza-restaurant traffic rose 1.7% last year, but Pizza Hut's was down 4.75% as Papa John's rose 32.1%.
The new Pizza Hut campaign from BBDO Worldwide, New York, departs from what Randy Gier, chief marketing officer, described to Advertising Age last fall as a "boom-splat" approach. That's where one big new product such as Big Foot or Triple Decker pizza was launched with heavy spending that resulted in unsustainable sales jumps.
CRUST EXTRAVAGANZA "They are trying to position themselves as the pizza variety chain," said David Trossman, a restaurant analyst with B.T. Alex. Brown. "It's very consistent that they would want to find a way to work the other crusts in there as well as the new tagline."
The Edge, a topping-laden pizza with no crust, gets the most attention in the first spots, which broke last week.
The commercials allude to the chain's red-roofed restaurants, an asset that franchisees have complained the company has ignored over the past few years.
~~~~~~~~
By Louise Kramer

SPECIAL REPORT: TOP 100 PIZZA HUT-VS.-PAPA JOHN'S BATTLE SIGNALS INTENSIFYING WAR AMONG SEGMENT LEADERS

2006-02-16T08:30:00.000-06:00

Smoke now clearing from recent skirmishes in the pizza wars is signaling growing difficulties facing the segment's front-line combatants as they fight for bigger slices of a saturated market.
In an unusual battle that has unfolded over the last year, market leader Pizza Hut has been sparring, not with No. 2 Domino's or No. 3 Little Caesars, but rather with Papa John's, the country's fourth-largest pizza concern.
The two chains have traded public pot shots on television, in newspapers and through memos sent to the financial community.
"My reaction is that there has been sort of a head-to-head, direct beating-each-other-up between these two companies over the last year since Pizza Hut initiated its 'totally new' pizzas,'" says David Trossman, a restaurant analyst with BT Alex. Brown in Baltimore.
Despite the fact that Papa John's would have to grow by more than 2,000 units to come close to the size of No. 3 Little Caesars, the former chain is gaining on its giant rivals through rapid nationwide expansion and sales growth.
The country's largest chains traditionally have driven sales with new product rollouts, but recently several of the biggest players --including Pizza Hut, Domino's, Papa John's and Chuck E. Cheese's -- also have been increasing traffic by emphasizing product quality, improving operations and renovating units.
Pizza Hut's "quality" initiative -dubbed "totally new pizzas" and featuring fresh toppings and a reformulated sauce -- debuted last year. The campaign included such efforts as installations of some 2,500 phones in restaurants to take orders more quickly and the recalibration of ovens to keep cooking temperatures more consistent.
"We are continuing to improve our operations and focus on the GM as the single most important person," says Jay Allison, a Pizza Hut spokesman. "The general managers are the ones who motivate our crews and make them No. 1. There are still some things we have to do better, but our customer loyalty indexes are way up there. We want to keep doing the same things we are doing, and keep doing them better."
Last year Pizza Hut shuttered more than 800 units. Allison says the effort was geared toward closing outdated restaurants and consolidating stores in certain markets.
"Instead of putting money into underperforming units, it helps us put money into improving our operations," he said. "Customers really benefit when you are running a tight ship because you don't have to pass higher prices on to them."
Allison attributed Pizza Hut's recent sales increases to the "totally-new pizzas initiative" as well as to new product rollouts, including The Edge, which debuted last fall, and the rectangular Sicilian Pizza, introduced this March.
"Some talk about quality as 'variety' and some as 'value,' but the way we define quality is using the best ingredients available and making pizzas that are always hot and fresh," Allison contends. "We put all of that under the umbrella of quality. Offering a variety of crust types, recipes and toppings, that really defines quality."
Pizza Hut's parent company, Tricon Global Restaurants, which also operates Taco Bell and KFC, was formed last October when the restaurant concern spun off from PepsiCo.
"From our perspective, PepsiCo was a great parent company," Allison says. "But now we have a parent company solely focused on restaurants and on serving the best food at the best price."
Domino's sales growth has been driven by several factors, including an emphasis on unit-level operations.
"We are focusing on what we do best," says Tim McIntyre, a Domino's vice president. "We are not trying to be the everything-to-everybody-everywhere company. But we are trying to be the best delivery company anywhere ever."
While Domino's introduced two, new flavored crusts last year, the nation's second-largest pizza chain also began a $200 million, multiyear reimaging campaign throughout its system of more than 4,000 units. The program includes an updated logo with bolder colors and a new typeface, a new design package for the stores, new pizza boxes and a change in employee uniforms. Last year more than 400 Domino's units received the facelift.
"Everything was looked at under a microscope, and nothing was left untouched," McIntyre says.
Although Domino's remains focused on delivery, the chain's reimaging program includes an effort to relocate units to higher visibility sites. Mcintyre says Domino's has discovered in the last few years that better real estate drives sales at delivery-carry-out-only units.
"A franchisee owner in Texas moved his store last year to a freestanding building a half a block away from a less-visible location," McIntyre explains. "He outfitted his store with a whole new design package, and sales went up 35 percent. People called and thanked him for bringing Domino's to town. Although he had been there for three years, they just hadn't noticed."
Brand awareness is equally important for a growing chain like Papa John's, which launched its second-ever national ad campaign this year.
"Our greatest challenge early on in new markets is to create trial," says Chris Sternberg, Papa John's vice president of communications. "In California the ads gave people a glimpse of Papa John's before we ever opened a restaurant. They also built anticipation before we came to town."
Papa John's systemwide sales grew last year more than 40 percent, and unit counts jumped from 1,160 in 1996 to 1,517 in 1997, with restaurants in 41 states.
"Papa John's had phenomenal numbers with strong same-store sales growth and geographic expansion," says Barry Stouffer, a restaurant analyst who follows Papa John's for J.C. Bradford & Co. in Nashville, Tenn. "The success they are having in new markets validates that the concept works all across the country."
Papa John's recently initiated a new store evaluation process that focuses on the quality of the product and customer service.
"John [Schnatter, Papa John's founder and chief executive] will tell you that we only execute properly at the store level 75 percent of the time," Sternberg says. "That means that only three out of four times are we getting the pizza there hot, and in under 30 minutes. Our goal for 1998 is to close the gap and get it up to 85 percent."
ShowBiz Pizza Time, parent of the 300-unit Chuck E. Cheese's pizza-party restaurants, further rebounded in 1997 from a sales slump of several years ago, notching the strongest bottomline performance in the company's 20-year history.
One of the primary factors driving the company's turnaround is a major repositioning effort that began in 1994, according to Richard Frank, ShowBiz's chairman and chief executive.
The chain's first phase in a two-part reimaging campaign included new exterior signage, improved lighting, more games for children younger than 7 and an upgraded menu with higher-quality pizza ingredients and an expanded salad bar. The second phase, which began last year and is expected to be completed in 1999, highlights an enhanced game-and-prize package.
Round Table Pizza, based in Walnut Creek, Calif., also seeks to maintain its competitive edge by focusing on operations, particularly delivery. The 539-unit chain has programs in place to improve its handling procedures in the kitchen in order to speed up the delivery process, according to Jim Fletcher, Round Table's president and chief executive.
"Almost all of our units deliver," Fletcher says. "For us it is a continuing strategy. Delivery is the fastest-growing segment of the market."
But even as many pizza chains focus on operations, they also remain committed to new product introductions as a way to gain a competitive edge.
Pizza Hut's most recent menu additions and marketing promotions have centered around the Edge and Sicilian pizzas. Last year Domino's rolled out two new crusts, garlic crunch and pesto.
Little Caesars, stuggling to stern sales declines and unit attrition, introduced a promotion called "Big! Big!" that featured larger pizzas.
Round Table several months ago debuted a new product called Roastin' Toastin' Garlic Pizza, with whole cloves of roasted garlic as well as bacon, yellow onions, tomatoes, roasted chicken and a garlic-Parmesan sauce.
Many pizza chains do not limit their product introductions to new varieties of pies. Pizza Hut is testing a line of grilled submarine sandwiches in its new "main path" units that, unlike the red-roof restaurants, have counter service, limited seating and drive-thru.
Hungry Howie's Pizza, based in Madison Heights, Mich., last summer introduced eight varieties of baked subs, including turkey, vegetarian and steak-and-cheese.
While Tulsa, Okla.-based Mazzio's Pizza debuted an ultra-thin-crust pizza this year, the majority of the Second 100-ranked chain's newest menu items have not been pizzas.
"We are driving traffic by bringing in customers who don't ordinarily order pizza," says Greg Lippert, Mazzio's vice president of marketing, citing the menu additions of such lures as wraps and calzone rings. "We looked at the maturity of the pizza segment, and we knew that in order to grow, we had to introduce new products that were not pizzas."
Unlike most of its competitors, Papa John's commits few resources to menu expansion.
"We continue to focus on our better-ingredients strategy," Steinberg says. "There are temptations to do line extensions and new-product rollouts, but we really believe that staying focused on doing one product better than anyone else helps us to continue to grow."
Papa John's rolled out a thin-crust item two years ago, but Sternberg says it represents only 8 percent to 10 percent of the chain's sale mix.
Whether pizza chains introduce new products, they remain committed to big-budget marketing, particularly two major players that are in the throes of advertising shifts. Earlier this year Little Caesars named Bozell Worldwide, Southfield, Mich., its new advertising agency after severing a longtime relationship with New York's Cliff Freeman & Partners.
"Bozell will be creating a campaign that will continue with our humor, but the style will be distinct," says Sue Sherbow, a spokeswoman for Little Caesars. "Our strategy will be to continue promoting quality and value."
Domino's, which last year named Campbell Mithun Esty in Minneapolis its new ad agency, introduced a campaign dubbed "delivering a million smiles a day."
The ads feature a series of different plots, but most revolve around some event that has left a family in the doldrums -- that is, until a Domino's pizza is delivered. One spot, for instance, depicts a family stuck in a hotel room during their vacation because of the rain. The only bright spot of the day is ordering a Domino's pizza.
McIntyre said the chain intends to use the campaign for several years.
"We know as a pizza company that we can make or break a family's evening," he says. "People call us because they can rely on our consistency and delivery. If we don't fulfill their expectations, we can have a profound negative impact on their evening. But when we do it right, we can have a profound enhancement on their evening."
PIZZA CHAINS RANKED BY U.S. SYSTEMWIDE SALES GROWTH (Year-to-year percentage change) Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - Latest[a] vs. PrecedingF - Preceding vs. Prior
A B C
D E F
1 1 Papa John's Pizza
Dec. '97 40.12% 34.99%
2 3 Chuck E. Cheese's
Dec. '97 9.05 6.35
3 2 Domino's Pizza
Dec. '97 7.83 9.52
4 6 Sbarro, The Italian Eatery
Dec. '97 5.38 1.37
5 5 Godfather's Pizza
May '98 2.00 2.12
6 4 Round Table Pizza
June '98 1.69 2.94
7 7 Little Caesars Pizza
Dec. '97 -1.79 -3.45
8 8 Pizza Hut
Dec. '97 -4.61 -7.04
AVERAGE:
7.46% 5.85%
a Actual results, estimates or projections
Source: NRN Research
PIZZA CHAINS RANKED BY TOP 100 MARKET SHARE (Share of aggregate sales of pizza chains in Top 100) Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - Annual Market Share, Latest[a]F - Annual Market Share, PrecedingG - Annual Market Share, Prior
A B C
D E F G
1 1 Pizza Hut
Dec. '97 43.52% 46.64% 50.05
2 2 Domino's Pizza
Dec. '97 22.97 21.77 19.83
3 3 Little Caesars Pizza
Dec. '97 12.73 13.25 13.69
4 4 Papa John's Pizza
Dec. '97 8.03 5.86 4.33
5 5 Sbarro, The Italian Eatery
Dec. '97 3.91 3.79 3.73
6 6 Round Table Pizza
June '98 3.62 3.64 3.53
7 7 Chuck E. Cheese's
Dec. '97 2.71 2.54 2.38
8 8 Godfather's Pizza
May '98 2.51 2.51 2.46
TOTAL:
100.00% 100.00% 100.0%
a Actual results, estimates or projections
Source: NRN Research
PIZZA CHAINS RANKED BY GROWTH IN NUMBER OF U.S. UNITS (Year-to-year percentage change) Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - Latest[a] vs. PrecedingF - Preceding vs. Prior
A B C
D EF
1 1 Papa John's Pizza
Dec. '97 30.78% 32.12%
2 2 Sbarro, The Italian Eatery
Dec. '97 6.34 4.41
3 3 Round Table Pizza
June '98 4.15 3.58
4 5 Domino's Pizza
Dec. '97 3.05 1.37
5 4 Godfather's Pizza
May '98 2.59 2.86
6 7 Chuck E. Cheese's
Dec. '97 -0.64 -0.32
7 8 Pizza Hut
Dec. '97 -2.38 0.30
8 8 Little Caesars Pizza
Dec. '97 -2.69 -4.28
AVERAGE:
5.15% 5.01%
a Actual results, estimates or projections
Source: NRN Research
PIZZA CHAINS RANKED BY U.S.S SYSTEMWIDE SALES Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - U.S. Systemwide Foodservice Sales (By Fiscal Year, in Millions), Latest[a]F - U.S. Systemwide Foodservice Sales (By Fiscal Year, in Millions), PrecedingG - U.S. Systemwide Foodservice Sales (By Fiscal Year, in Millions), Prior
A B C
D E F G
1 1 Pizza Hut
Dec. '97 $4,700.0 $4,927.0 $5,300.0
2 2 Domino's Pizza
Dec. '97 2,480.0 2,300.0 2,100.0
3 3 Little Caesars Pizza Dec. '97 1,375.0 1,400.0 1,450.0
4 4 Papa John's Pizza
Dec. '97 867.6 619.2 458.7
5 5 Sbarro, The Italian Eatery
Dec. '97 421.7 400.2 394.8
6 6 Round Table Pizza
June '98 391.3 384.8 373.8
7 7 Chuck E. Cheese's
Dec. '97 292.3 268.0 252.0
8 8 Godfather's Pizza
May '98 270.8 265.5 260.0
TOTAL:
$10,798.7 $10,564.7 $10,589.3
a Actual results, estimates or projections
Source: NRN Research
PIZZA CHAINS RANKED BY NUMBER OF U.S. UNITS Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - Year-End Number of Units, Latest[a]F - Year-End Number of Units, PrecedingG - Year-End Number of Units, Prior
A B C
D E F G
1 1 Pizza Hut
Dec. '97 8,698 8,910 8,883
2 2 Domino's Pizza
Dec. '97 4,431 4,300 4,2423 3 Little Caesars Pizza
Dec. '97 3,900 4,008 4,187
4 4 Papa John's Pizza
Dec. '97 1,517 1,160 878
5 5 Sbarro, The Italian Eatery
Dec. '97 805 757 725
6 6 Round Table Pizza
June '98 603 579 559
7 7 Godfather's Pizza
May '98 554 540 525
8 8 Chuck E. Cheese's
Dec. '97 312 314 315
TOTAL:
20,820 20,568 20,314
a Actual results, estimates or projections
Source: NRN Research
PIZZA CHAINS RANKED BY SALES PER UNIT Legend for Chart:
A - Latest Year RankB - Prec. Year RankC - ChainD - Fiscal Year EndE - Sales Per Unit (By Fiscal Year, in Millions), Latest[a]F - Sales Per Unit (By Fiscal Year, in Millions), PrecedingG - Sales Per Unit (By Fiscal Year, in Millions), Prior
A B C
D E F G
1 1 Chuck E. Cheese's
Dec. '97 $980.0 $902.0 $827.0
2 4 Papa John's Pizza Dec. '97 713.0 683.0 610.0
3 3 Round Table Pizza
June '98 701.0 688.2 688.2
4 2 Sbarro, The Italian Eatery
Dec. '97 693.0 698.0 702.0
5 5 Pizza Hut
Dec. '97 630.0 620.0 651.0
6 6 Domino's Pizza
Dec. '97 568.0 541.2 495.0
7 7 Godfather's Pizza
May '98 504.5 500.0 500.0
8 8 Little Caesars Pizza
Dec. '97 348.5 350.0 350.0
AVERAGE:
$642.3 $622.8 $602.9
a Actual results, estimates or projections
Source: NRN Research
PHOTO (COLOR): Pizza Hut's recent sales increases have been attributed to the "totally-new-pizzas initiative" as well as to new product rollouts, including The Edge, which debuted last fall, and the rectangular Sicilian Pizza, above, introduced this March.
PHOTO (COLOR): The pizza wars began to heat up last year when Papa John's ran its first national ad campaign featuring Pizza Hut's co-founder Frank Carney, who is now a Papa John's franchisee.
PHOTO (COLOR): Papa John, Founder Papa John's Pizza and Frank Carney, Co-founder Pizza Hut
PHOTO (COLOR): Above: Hungry Howie's Pizza rolled out last summer a line of baked submarine sandwiches.
PHOTO (COLOR): Left: In Little Caesars' ads for the Big!Big! promotion, the chain compared the size of its pies to both Pizza Hut and Domino's.
PHOTO (COLOR): Domino's began a $200 million systemwide remodeling program in 1997 aimed at modernizing store designs and increasing the visibility of its delivery and carry-out units.
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By Amy Zuber

NEWS PIZZA HUT'S 'MAIN PATH' UNITS TARGET ON-THE-GO BUSINESS

2006-02-16T08:22:00.000-06:00

DALLAS -- After two years of successful tests in one market, Pizza Hut is taking a more aggressive expansion strategy with a new restaurant format that involves counter service, limited seating and individual meals.
As an alternative to the chain's full-service red-roof restaurants, its delco-type delivery/carry-out units and its express kiosks, Pizza Hut's new "main path" stores resemble a typical fast-food restaurant with a large menu board, a long counter with multiple registers, 60 to 80 seats and a typical fast-food drive-thru.
In an effort to capture more on-the-go business, the main-path outlets, which range in size from 2,400 square feet to 2,600 square feet, also feature a new line of grilled submarine sandwiches as well as personal-size pan pizzas.
New exterior signage has the traditional Pizza Hut logo along with a tag that reads, "& Subs," as a way to emphasize the new sandwiches as a permanent menu addition.
"For us it is a great incremental occasion," said Michael Miles, senior vice president of concept development and franchise for Dallas-based Pizza Hut. "If you are having pizza on-the-go for lunch, the thing you are cannibalizing is burgers."
But as Pizza Hut strives to increase its lunch business, the majority of sales at the mainpath outlets still stems from medium and large pies.
"One of the major functions of the main-path asset is to update and modernize the kitchen and add capacity to the restaurant that helps us better satisfy the mainstream of our business," Miles said.
Since debuting the new format less than two years ago in Louisville, Ky.-- which since that time has become the headquarters of its parent company, Tricon Global Restaurants -Pizza Hut has opened 18 mainpath units in the initial test market.
Now Pizza Hut, the country's largest pizza chain, plans to expand the main-path concept this year by opening company locations in Columbus, Ohio; Milwaukee; Nashville, Tenn.; Phoenix; and Tampa, Fla.
Miles said the new outlets are generating average sales that are about 50-percent higher than those of a typical Pizza Hut. The chain's average system sales per unit in 1997 was $630,000.
The 8,700-unit pizza giant also will begin franchising the new format. NPC International Inc., Pizza Hut's largest franchisee with more than 650 units, will be among the first to introduce main path with a plan to open some 10 units this year in Champagne, Ill., and Topeka, Ken., according to Jim Schwartz, president and chief operating officer of Pittsburg, Kan.-based NPC. Schwartz said seven stores would be conversions and three will be build-outs.
Schwartz said the main path store is a more efficient unit than either the red roof or the delco locations because it was engineered for delivery, with built-in features like a separate dispatch center and a separate door for delivery drivers.
"In most metro markets we prefer not to consolidate delivery within a red roof unless it is absolutely necessary," Schwartz said. "The red roofs were designed to be dine-in businesses. It was not until the advent of delivery in 1985 that we put some [delivery] in the back of the red-roof unit."
Miles agreed: "The capacity of the kitchen in the mainpath unit is much greater, the flow of the kitchen is much better and the amount of technology we have managing the orders is considerably greater than a Pizza Hut that was built 20 years ago. Many of our dine-in units that were built 20 years ago were never sized to do the volume and variety that we can do today."
In the main-path units, Miles said, the pizzas and subs are served in less than five minutes. Dine-in customers order and pay at the counter and then sit down. When their food is ready, a Pizza Hut employee brings it to their table. Miles said Pizza Hut is researching new technologies that would speed up cooking times.
The development of the main-path format was a natural evolution, Miles said.
"Pizza Hut is by far more dinner-skewed than any of the large restaurant companies," he said. "It is natural for us to get into the lunch business and personal pan pizzas are great avenues for doing that."
He added, "Most pizza operators don't have much of a lunch business. The bake time for a pizza is anywhere between six to 10 minutes so in the industry historically the only folks who compete have been those who sell slices. Most pizza chains are pretty much in the medium and large pizza business for carryout and delivery for parties of two or more."
NPC views the new format as an opportunity for making pizza sales more convenient in markets where customers prefer on-the-go meals.
"Pizza is becoming more off-premises oriented," Schwartz said. "In a metro market, the main-path format services the off-premises occasion more efficiently than the typical red-roof restaurants.
"Main path is speed-oriented with self-service beverage stations, personal pan pizzas and sandwiches that can be ready fairly quickly."
Although Miles and Schwartz both declined to comment on the costs to build a new main-path unit or convert one from an existing site, they said the format requires a significant investment. It features such modifications as a new exterior facade, including changes to the traditional red roof, more glass-front windows and upgraded kitchen operations.
Miles said the new line of grilled subs, which feature ingredients such as steak, chicken, cheese and mixed vegetables, have a different taste profile than baked subs that are offered on a limited basis in some red roofs.
One of the biggest challenges related to the expansion of the main-path format is finding real estate.
"Main path is a hybrid location," Miles said. "For on-the-go, carry-out and dine-in customers, we want high visibility locations. But for delivery we need locations where you don't have a lot of traffic stacked up around the site. It is a complicated real estate challenge. The thing you need is sites where you nave good traffic, but where you also have median breaks, traffic lights and back ways out that allow delivery drivers to avoid traffic tie-ups on the main arteries."
PHOTO (COLOR): Pizza Hut's new main-path unit resembles a typical fast-food restaurant with a menu board, counter service and limited seating,
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By Amy Zuber