This bet began in 2020. It includes a modification to the logo, since the hat that covers the typography became an iconic element on store facades and already has neon light outlines. The letters also went from being round to more dynamic. For this, the brand first worked with the Isobar agency and then with Gray at a regional level.
Another change was the remodeling of the stores. Pizza Hut was founded in 1958 in Wichita, Kansas, under a more restaurant business model. It arrived in Mexico in 1969 and although this concept is maintained, it now combines cooking, home delivery and store delivery in the same space.
They are doing it this way because they do not want to leave the history of the brand aside either. “Pizza Hut has a very rich past, having been in movies since the 1990s and working with quirky celebrities at the time. Millennials and even generation Z connect very well with this nostalgia and vintage theme that not all brands can offer”, says Tinoco.
To differentiate itself in the market, the group invested 163.3 million pesos in the construction of a dough factory in Querétaro, in order to unify the flavor of the pizza base in all branches. It also earmarked $380,000 to create a showroom and laboratory so as not to stop innovating on the menu. In fact, there are temporary releases to keep the consumer captive.
Pizza Hut is looking to amplify the moments of consumption. He launched an individual presentation on the market because through market research he identified that although pizza is linked to family and friends gatherings, there is a new wave of consumers who prefer to eat alone because they choose to.
He also launched the WingStreet brand, which is part of the aggregators and offers a variety of boneless and wings, “it is a way to connect with another consumer and with another consumption occasion. So our differentiation and proposal comes more in product, service and innovation and in the experience that we can give”, details the manager. However, even if the new offer lends itself, they do not plan to sell alcohol.
competition for taste
Pizza Hut is the third strongest player in the pizza category. The first place goes to Domino’s Pizza, from Alsea, and the second is Little Caesars, “a competitor that has positioned itself very well for being the cheapest and being instantly available; it keeps its promise, if you want a very cheap pizza, there it is”, says Tinoco.
From their perspective, both competitors have done a good job, each in their own. Pizza Hut’s strategy is elsewhere. “We believe that hand in hand with the new image and the helpful way in which we have trained our collaborators, we can fight to differentiate ourselves through service and experience.”
Juan Luis Bueno, general director of Pizza Hut Mexico, trusts that their expansion plan will make them reach their growth expectations. “This is the moment where the brand can really grow at a faster pace than we were before. We have opened about 72 stores in the last two and a half years and right now we plan to open about 35 to 40 stores a year in the Mexican Republic”, he comments.
The goal is to double its number of stores in the next five years. Currently, they have four under construction and they estimate to end this year with close to 30 openings, both their own and in franchises, depending on how the market behaves. In 2024, the idea is to open 40 branches.
Bueno shares that in Mexico the franchise model represents 40% of all Pizza Hut stores. A 160 m² establishment requires an investment of 4.5 to 5 million pesos, with a return on investment of about 3.2 years.
Regionally, Pizza Hut’s market share is 15% considering the chain brands (Pizza Hut, Jeno’s Pizza and Apache Pizza). The goal is to open close to 1,300 stores in the next 10 years in Central America.
“The important thing here is to always maintain your fundamentals and innovate on them. From the oven to your home we guarantee 10 to 12 minutes with a certain temperature that makes the freshness the same at home or in the restaurant. We return with new energy”, concludes the CEO.