Pizza Hut Stores Essay

Submitted By emmacrombie
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Pages: 3
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izza network is powered by Stephine Ltd NZ, which provides the in-shop operational system, public website and internal communication system for Hell Pizza Group.
The public website is www.hellpizza.co.nz . People can make online food order here, or find out current promotion or company introduction. Every person is able to visit this site.
The operational system is calle
But Janisa Parag, of retail marketing specialists IdeaWorks, says selling pizzas for less than $5 isn't a sustainable strategy.

"How low can you go? That's pretty low," Parag says. "There has to be something more than that."

She says Hell Pizza, the third biggest player in the market, has been elevating itself "above the pack" through innovation - rather than price - including the "pizza roulette" promotion it's offering, which involves a single pizza slice being drizzled with a super-hot chilli sauce.

Hell Pizza charges $17.50 for its large gourmet pizza range, while Pizza Hut's extra large stuff crust pizzas get close to $20 and Domino's premium range goes for $15.99.

Hell, however, operates in a different part of the market to the other two firms and doesn't resort to such deep discounting to drive sales, says co-founder and director Stu McMullin.

He says the company doesn't drop prices any lower than the $13 pizza promotions it runs on Black Fridays and the $13 pizza cards it gives to students.

"A Hell customer is not price conscious," McMullin says.

When it comes to the battle between Domino's and Pizza Hut, the former company's financial results suggest it could be winning.

ASX-listed Domino's Pizza Enterprises' Australian and New Zealand stores, most of which are run by franchisees, achieved same-store sales growth of 13.2 per cent in the 12 months to July 2011.

Pizza Hut's total sales in New Zealand fell $13.8 million, or 23.3 per cent, to $45.5 million in the year to February. Around half of the sales drop was the result of a sell-down of stores to independent franchisees.

Although Pizza Hut's same store sales were down for the year as a whole, there had been an improvement in the second half which is expected to continue, Restaurant Brands says.

Creedy says the level of competition between Domino's and Pizza Hut tends to get overplayed. Pizza, he says, doesn't just compete with pizza.

"Pizza Hut competes with McDonald's, KFC, fish and chips and everything else."

Retail analyst Tim Morris, of Coriolis Research, says Domino's has been "winningthe war" against Pizza Hut internationally for the past 20 years.

The
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