After visiting Pizza Hut in Dubai and seeing how Yum! Brands is experimenting with new dine-in concepts abroad, I suspect Pizza Hut needs to rethink its US strategy.
In other countries, dine-in Pizza Huts work because the brand is still seen by many as a luxury. For international consumers, the chain guarantees cleanliness and freshness and is a place for youth to hang out.
Many would argue that Pizza Hut's dine-in model is simply not viable in the US anymore, that people want convenience and young people aren't interested in sitting down at a Pizza Hut.
I have to disagree. While adding digital services and better delivery is all well and good, it's the dine-in, sit-down restaurants that defined Pizza Hut and set it apart from its competitors.
There are already entire generations — many of which are just now having children — who fondly remember their childhoods at Pizza Huts. I think if they were presented with updated ideas for what a dine-in Pizza Hut is, like we're seeing in Dubai and Australia and elsewhere, they would likely respond.
But we may never find out. Greg Creed, the CEO of Yum! Brands said last year that Pizza Hut’s road to success lies in making the pizza easier to order via digital services and pushing the brand further into becoming a delivery restaurant.
Yum! is investing $130 million to that end.