Pizza Hut slams the theme store. Will this be a good direction to attract young people?

It seems a bit difficult for Pizza Hut to “turn over” with themed stores.

Personality, fantasy, art… In the early years, I never thought I would use these words to describe Pizza Hut . 

But just recently, it has used three brand-new themed dining spaces to show us more possibilities of the Pizza Hut brand: focusing on parent-child family dinners, the “flower escape” full of natural flavor; incorporating a variety of avant-garde artworks, and trying to The “Metro Encounter” that provides young people with an exquisite and fashionable dining environment; and the “Star Chef’s Covenant” that is oriented towards urban white-collar social networking and adopts a simple style. 

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

△ Hua Yang escapes the theme space

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

△ Will encounter themed space

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

△ Themed space of Star Kitchen

Of course, this is not the first time that Pizza Hut has built a theme restaurant. It is just different from the previous “limited-time theme restaurant”. All three theme restaurants this time will be retained and are planned to be promoted to many Pizza Hut stores nationwide in the future. And it upgraded the space theme of the restaurant, the motivation behind it is to improve performance and reverse the continued decline in revenue. 

01 Pizza Hut keeps trying themed restaurants

Pizza Hut’s theme restaurant can be traced back to 2018. At that time, Pizza Hut, whose performance continued to be weak, began to find a way out, and in conjunction with social resources such as the city library, launched the ” Yue Read Shi Guang” theme restaurant that combined reading and food . Subsequently, Pizza Hut continued to experiment with various theme modes, such as movie restaurants, cute pet restaurants… 

Having a clearer audience and more distinctive theme stores can activate more consumers on the one hand and deepen the brand’s memory on the other. This is why Pizza Hut has chosen to continuously launch themed stores. 

Theme 1 Reading Time Theme Restaurant

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

In 2018, Pizza Hut’s parent company, Yum China, responded to the call of “Reading for All” and created “Reading Time” theme restaurants in Shenzhen, Qingdao, Nanjing and other cities. Currently, there are more than 70+ theme stores across the country. There are reading areas such as shared book kiosks and reading corners in the restaurant, and reading activities such as reading sharing sessions will be regularly launched. 

Theme 2 Dunhuang Art Theme Restaurant

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

In November 2020, Pizza Hut and Dunhuang Museum jointly opened 9 themed restaurants in 9 cities across the country, introducing Dunhuang art into Pizza Hut’s restaurant space design, such as the Dunhuang murals on the walls and Dunhuang limited edition placemats, presenting “Chinese and Western” “Combined” beauty. In addition, Pizza Hut also launched Dunhuang limited packages and set up an exhibition area around Dunhuang. 

Theme 3 Movie theme restaurant

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

In December 2020, Pizza Hut opened its first movie-themed restaurant in Beijing, aiming to create an entertainment and social restaurant for young people. In terms of space design, the restaurant adopts a cinema style with specific movie-themed supper meals, such as popcorn buckets and film-style snack boxes. At the same time, film exchange meetings and offline movie fan meetings are held regularly. 

Theme 4 Intangible Heritage Theme Restaurant

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

In January 2021, following the Dunhuang theme restaurant, Pizza Hut once again took traditional Chinese culture as the theme, and united 11 major intangible cultural heritages to create an intangible cultural heritage restaurant, which embodies the Qinhuai Lantern Festival, Beijing Rabbit Ye, Sichuan Sichuan Opera and other folk arts in its stores . Some stores also use 5D light and shadow to present intangible cultural elements more intuitively, and invite non-genetic inheritors to the site for interactive exchanges. 

Theme 5 Ashengmeng Pet Home Theme Restaurant

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

May 2021, limited operating seven weeks of flash theme shop “A Shengmeng pet home” appeared in Beijing, Shanghai, Changsha and other 12 cities, consumers can bring their own pet posing dining area outside the store, part of the theme restaurant Also invited the well-known UP cute pet to the store as the “one-day store manager”. 

Today, after nearly 4 years of exploration, Pizza Hut is no longer satisfied with the limited-time limited theme restaurant model, and has turned to start a larger range of theme store trials. The three new spatial design models are the first step. 

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

As mentioned at the beginning of this article, Pizza Hut will use three different themed restaurant design models for store upgrades, which is another recent attempt at themed space. We found that although the three types of theme stores have different design styles and different consumption scenarios, they are essentially based on the current consumption habits of young people, creating a space with high-value and diversified experiences, and providing young people with photo check-in points.

02 Behind the theme store is the aging of the brand

Judging from the types of theme stores launched by Pizza Hut in recent years, catering to the consumption preferences of contemporary young people and integrating Chinese cultural elements is the main direction to try. All these changes are actually due to the predicament that Pizza Hut has fallen into in recent years. 

In 1989, Pizza Hut entered the Chinese market and quickly gained the attention of consumers with its trendy western food model and achieved rapid expansion. However, with the emergence of more and more food and beverage brands, consumers have a greater choice of options, and Pizza Hut’s uniqueness has diminished. 

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

In 2014, Pizza Hut experienced negative growth for the first time. From 2015 to 2020, its performance has gradually become a “retracting” existence in Yum China. In 2020, Pizza Hut’s same-store revenue will drop by 14% and operating profit will drop by 45%.

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

The 2020 U.S. Pizza Industry Report shows that Pizza Hut’s sales have fallen to the second place and dropped out of the top 20 growth rate list. 

From the current point of view, the theme restaurant is one of the roads that Pizza Hut made when it was making a brand rejuvenation strategy . Food and beverage colleagues have also tried this path: Haidilao launched a pink-themed store with a variety of cute meals to attract female customers; Coucuo 2049 combines hot pot and space elements to provide young people with a different consumption experience.

Pizza Hut slams the theme store. Will this be a good direction to attract young people?

Haidilao Pink Theme Restaurant

But can themed space solve the urgent problem of brand “aging”?

Let’s try to take a look at the practices of Starbucks and KFC , which have done a relatively good job of “maintaining youth” . Starbucks has always been committed to exploring digital transformation, launching a coffee fast concept store, trying coffee socializing on a mini program, adding digital services to enrich the consumer experience.

And KFC, which belongs to the same parent company as Pizza Hut, has also launched many theme co-branded stores, but this is just one of KFC’s marketing methods. In recent years, it has launched the main light food, green and gray matching, and fully electronic ordering. The brand new sub-brand K PRO, boldly subverts the original image of a kind old grandfather for publicity, and is co-branded with various young brands such as Yuanshen Games.

Starbucks and KFC will both suffer from “brand aging”, but obviously their upgrade strategies need to be more comprehensive, increasing digital construction, upgrading store experience, launching new products… as much as possible to complete the upgrade at every consumer touch point.

On the other hand, Pizza Hut, the upgrade path does not seem so “active”. Although the brand also launched new products this year, tried joint names with Santi and other well-known IPs, and resumed the breakfast buffet business, it would try to reverse the current market situation and try to attract more. Consumers, Pizza Hut still has a long way to go. At least, it is obviously not enough to upgrade the store theme alone.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/pizza-hut-slams-the-theme-store-will-this-be-a-good-direction-to-attract-young-people/
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