Pizza Hut slashes prices again - for good

July 28, 2010

Amid a coupon-cutting environment and fierce competition from other top pizza brands, Pizza Hut has announced a sweeping national menu pricing reduction.  The new lower, simplified pricing is available now in nearly two-thirds of America’s Pizza Hut restaurants and will be effective nationally in August.

The foundation of Pizza Hut's new cost structure is revamped menu pizza prices, now set at $8 for a medium (up to three toppings), $10 for a large (up to three toppings with additional charge for Stuffed Crust Pizza) and $2 more for a specialty pizza (additional charges vary by location).

“This isn’t just another deal, this is an everyday menu pizza pricing change taking place,” said Brian Niccol, Chief Marketing Officer at Pizza Hut.  “High, overcomplicated pricing has been a category issue in the pizza world for the last several decades.  Much like our $10 Any Pizza shifted America’s focus on how much a single pizza should cost, our new pricing structure will set the industry tone for what is a holistic, everyday value solution."

The brand has also co-opted Domino's terminology about "transparency," which it applies to its revamped pizza recipe and "Oh Yes We Did" campaign it started last fall that's bolstered same store sales and income this last quarter.

"The motivation behind this change wasn't just value, but simplification and transparency," said Niccol.  "Our new menu pricing makes it easier for our customers to access great value everyday when ordering without having to worry about coupons or special limited offers."

Topics: Business Strategy and Profitability , Food & Beverage , Pizza Hut

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