Pizza Hut is hoping a brand-new $5 pizza will bring back customers who have drifted toward rival chains offering better deals and fresh menu ideas.
The company is introducing “Crafted Flatzz,” a thinner, crispier version of its well-known Personal Pan Pizza, priced at $5 and designed as a single-serving option. Available for a limited time, the offering is aimed squarely at the budget-conscious lunch crowd, a segment that Pizza Hut admits it has not served as effectively as it could.
The launch comes as Pizza Hut works to reverse a troubling streak of seven consecutive quarters of sales declines in the United States. Executives have been candid about the challenge: the pizza itself is not the problem, but the chain’s value message has struggled to connect with customers who are increasingly focused on affordability and convenience. Competitors such as Domino’s and Papa Johns have found ways to win those customers back with targeted promotions, new products, and revamped loyalty programs.
In the most recent quarter, Pizza Hut reported a 5% drop in U.S. sales, trailing behind its major competitors. By contrast, Domino’s reported strong momentum, fueled in part by its new Parmesan Stuffed Crust Pizza and a refreshed rewards system. The chain also struck a partnership with DoorDash, which boosted delivery options and helped generate same-store U.S. growth of 3.4%. Papa Johns, which has faced its own rough patches, saw sales increase 1% during the same period. That rebound was supported by its $6.99 “Papa Pairings” menu, which encouraged customers to order more pizzas, and a strategy to move away from lower-performing items like sandwiches and sides.
Industry analysts point to a key issue for Pizza Hut: the lack of a compelling value message. “Pizza Hut has trailed its peers because its value message hasn’t stood out like Domino’s and Papa John’s,” said R.J. Hottovy, head of analytical research for Placer.ai. Yum! Brands CEO David Gibbs, whose company owns Pizza Hut, was similarly blunt during an August earnings call, describing the chain’s U.S. marketing as “an insufficient value message amid a competitive value landscape.”
Pizza Hut executives hope Crafted Flatzz can help fix that. CEO Aaron Powell noted that more than two-thirds of Pizza Hut’s pizzas are sold after 4 p.m., leaving lunch hours as an area with significant growth potential. By offering a crisp, affordable option at just $5 before 5 p.m., the chain is attempting to draw in customers who want pizza but not an entire pie. Powell emphasized that the goal is to make pizza appealing at any hour of the day, with new formats that fit different eating occasions.
“People love pizza all day. It’s up to us to bring the new ways of allowing people to have formats of pizza they can eat at any hour,” Powell told CNN. “This is a great example of something that is an outstanding value.”
The Crafted Flatzz lineup includes five varieties: chicken bacon ranch, three cheese, Nashville hot chicken, pepperoni, and “The Ultimate,” which comes loaded with toppings such as Italian sausage, caramelized onions, cheese, and pepperoni. The pizzas will be priced at $5 before 5 p.m. local time, with a slight increase after that depending on location.
For Pizza Hut, the timing of the launch is important. Midday traffic at restaurants has not recovered to pre-pandemic levels, according to analysts, and this is where the chain sees its biggest opportunity. By adding a fresh, value-driven product designed for solo diners, Pizza Hut hopes to convince customers to give the chain another try.
Promotional campaigns like $2 Personal Pan Pizzas on Tuesdays and Wing Wednesdays are also part of the strategy, but executives believe Crafted Flatzz represents a more direct way to compete with Domino’s and Papa Johns in terms of value. Industry experts say it could help improve perceptions of the brand at a time when customers are more selective about how and where they spend their money.
“While competition is unlikely to wane, the launch of the $5 ‘Flatzz’ pizza could help improve Pizza Hut’s value perception and bring more customers into its stores during lunch hours,” Hottovy said.
Pizza Hut executives acknowledge that the broader economic climate is weighing on customer spending. Powell declined to go into detail about the company’s challenges but admitted that consumers are being “very choosy with where they spend their money because there are challenges with confidence.” For Pizza Hut, delivering on value and finding ways to appeal to customers throughout the day may be the only way to regain ground in an increasingly competitive pizza market.
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