Halebop's fading memory is testment as to why 'Pizza Hut' selling Pizzas under a different brand would fail. The 'Pizza Haven' franchise for New Zealand that Halebop refers to was purchased by Dominos. It is hardly likely that Dominos would have bought the chain out in New Zealand if Pizza Haven could immediately open up again under the wing of Domino's biggest competitor! It was 'Eagle Boys' that was bought up by RBD and 'integrated' (that is business speak for closed down) to allow Pizza Hut to expand very rapidly into the takeaway end of the market.Quote:
quote:Originally posted by hiawatha
Would their contract with yum allow them to sell pizzas under a different brand name? Does anyone know?Quote:
quote:Originally posted by Halebop
Pizza Hut is not showing any sign of turnaround despite semantics to the contrary. An 8% sales drop is a continued implosion, not a stabilization. Perhaps too late / problematic now but they could consider reinstating Pizza Haven at the discount end to help spoil Dominos expansion. With only 3 Pizza Chains of any scale (and Hell and Dominos are really only "half" pizza chains), RBD have made a real mess of their pizza strategy.
hiawatha
At the bottom end of the market, the Pizza business is 'deal driven', not 'brand driven'. Branding is so strong (sic) at the bottom that Halebop, who IIRC has done some consulting work in this industry, couldn't even remember what brands went where! And you can bet most kiwis won't have the memory that Halebop has.
In the interest of 'research' I picked up a couple of Dominos Pizzas today, cashing in one of my mailbox coupons. I asked the girl behind the counter whether many people bothered to bring in the coupons.
"Oh yes, she said. Because the coupon's make the Pizzas sooo cheap."
Pizza Hut are already matching Dominos here in Christchurch 'dollar for dollar' with their 'Unlimited Large Favourites' for $6.90 and three large favourites for $19.90. That means on price PH is covered.
So even if RBD was allowed to set up a competing Pizza Chain to Pizza Hut, why would they? The last thing RBD needs is another layer of head office administration costs.
SNOOPY
discl: hold RBD