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Yum Announces Big Pizza Hut Investment


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There’s no question that Domino’s has stolen the bulk of the recent mojo in the ongoing pizza wars sweeping across the globe. The latest salvo promises to ratchet up the intensity, as Yum Brands announced a dramatic $130 million investment for its Pizza Hut brand.

As part of an investors conference call announcing Yum’s quarterly results, CEO Greg Creed said the company plans to upgrade technology, equipment and advertising between now and the end of 2018.

Creed said Yum’s investment in Pizza Hut was significant, and could boost the brand’s fortunes like its $130 million investment into KFC did back in 2015. He suggested it was a “relatively modest” investment given Yum’s massive scale, but expressed optimism that it would reverse the fortunes of the seventh largest U.S.-based franchise brand.

In last year’s Franchise Times Top 200, looking at year-end 2015 numbers, Pizza Hut posted an estimated $12 billion in global sales with nearly 7,800 U.S. locations and more than 16,000 locations across the globe.

We’ll continue to monitor the latest developments in the pizza wars, but this should make things much more interesting. Pizza Hut hasn’t exactly sat on its laurels as Domino’s has gone on its recent (and very positive) tear.

The company has recently launched a text-based delivery tracker, and has added other high-tech enhancements including voice ordering through Amazon’s Alexa. Given the sustained investment Domino’s has delivered in terms of food quality, in-store ambiance, delivery technology and its social and online presence, Pizza Hut has a long ways to go to catch up.

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The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is associate editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is editor-in-chief of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is staff writer at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonLaura Michaels is managing editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 
Nancy WeingartnerNancy Weingartner is editor-at-large of Franchise Times magazine and the editor of the Food On Demand media project. You can reach her at 612-767-3200 or at nancyw@franchisetimes.com.
Follow her on Twitter at http://twitter.com/nanweingartner.
 

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