Pizza Hut, part of Yum Brands, are lowering prices to the point that most “medium pizzas will cost $8, large pizzas will be priced at $10 and so-called specialty pizzas will cost $12 each,” said the New York Times.
Pizza Hut advertising signs claim, “Every pizza price slashed.” This certainly is true, given that a medium-sized Pizza Hut pizza was previously priced at around $15 dollars. Pizza Hut has high hopes the price cuts will stimulate Pizza sales for the company.
Just prior to the price cuts, on Aug. 19, Pizza Hut enacted a pizza delivery deal, serving 900 pizzas to Savvis, Inc. offices in five countries, according to a press release. With the mass pizza delivery, Savvis, the computer infrastructure giant, sought to thank its employees for dedicated service to the company.
Pizza Hut’s significant dropping of prices reveals the extent to which business has been suffering for the company, the Times report says. The news about the slowing recovery from the recession startled them into promoting lower prices, so that they would attract more customers.
For those worried about a poorer quality standard as a result of the lower prices, “We want to build loyalty beyond the price,” Pizza Hut CEO Brian Niccol said in the New York Times interview.
Customers would “see the value in the brand that goes beyond the price,” he said.