Economy

Pizza Hut puts on a posh new look in China

Food giant Yum China gives its Pizza Hut%20Hut&redirect=yes"> brand a high-end makeover amid rising competition and flagging sales, splashing out on fancy new decor and designer uniforms by Anna Sui in order to attract young spenders. Eve Johnson reports.

(Reuters) – This isn’t your neighborhood Pizza Hut%20Hut&redirect=yes">

Located in a fancy mall in Shanghai – it boasts brass lamps, Italian marble

…and Australian steaks:

All part of a high-end makeover.

Pizza Hut%20Hut&redirect=yes"> has more than 2200 outlets across China

But over the past year – sales have been falling.

ADAM JOURDAN, REUTERS,

The issue for Pizza Hut%20Hut&redirect=yes"> is partly due to where it sits here in the China market. Unlike you know perhaps in Europe or the Americas, in China it’s meant to be seen or historically has been seen as more of a premium brand. They’ve brought out some products to try and give themselves sort of a glitzier side which haven’t always worked. Things like they have escargot, snails, on the menu. They had a pizza with very expensive shellfish abalone as a topping. Some of these products haven’t really worked for them here.

The solution – keep pushing the premium image…but aim for a younger crowd.

Pizza Hut%20Hut&redirect=yes"> says it’s spent around $60 million over the last year on a massive upgrade….

….streamlining the menu –

….and adding some pop culture cache:

a tie -up with American fashion designer Anna Sui

to give the company a whole new look.

This isn’t parent company Yum China’s first salvage job.

A series of food safety scares beginning in 2012 hit sales at another of its brands: KFC

But the company was able to turn things around….

a success story that Pizza Hut%20Hut&redirect=yes"> is hoping to repeat.


Associated Links

  • Pizza Hut
  • Yum! Brands
  • ThomsonReuters
  • KFC
  • Yum China
  • Food and drink
  • Yum! Brands
  • Cuisine
  • Pizza Hut
  • Anna Sui
  • Yum
  • Pizza

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