Pizza Hut hungry for more
15th Jan 2024
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By Emily Ainsworth
With a humble 10 per cent slice of the Australian pizza market, Pizza Hut is gearing up to challenge the big cheese, Domino’s, for a bigger piece of the pie.
The pizza chain, which has 260 stores in Australia, announced late last year that it will open at least 30 new Pizza Huts in 2024 under the ownership of US-based Flynn Restaurant Group.
Flynn is the world’s largest restaurant franchise operator, with more than 2300 outlets in the US, including 945 Pizza Huts.
It also owns Taco Bell, Wendy’s, Applebee’s and Arby’s, and has recently signed a deal to bring 200 Wendy’s restaurants to Australia by 2034.
A slice of history
Pizza Hut arrived in Australia in 1970 and soon became a household name, with its large, family-friendly restaurants that offered all-you-can-eat buffets, dessert bars and that infamous garlic bread.
Many Aussie families have fond memories of celebrating birthdays, anniversaries and other occasions at Pizza Hut in the 80s and 90s.
However, the chain’s popularity started to decline in the 2000s, as consumers shifted their preferences to online ordering, delivery apps and healthier options.
Pizza Hut also faced stiff competition from Domino’s, which invested heavily in technology, innovation and marketing.
While the chain tried to reinvent itself by closing its dine-in restaurants and focusing on smaller, delivery-only outlets, it still lagged behind Domino’s in terms of sales and market share.
Pizza Hut’s comeback strategy
While Pizza Hut holds just 10 per cent of the Australian pizza market compared to ASX-listed Domino’s’ 50 per cent share, Pizza Hut Australia CEO Phil Reed said the company had identified 400 potential sites across the country where it could open a new store, according to the Australian Financial Review.
He also said Pizza Hut will ramp up its advertising and promotions, as it aims to steal customers from Domino’s and other rivals.
Pizza Hut hopes that its new owner, Flynn, will provide the financial backing and operational expertise to help it grow and succeed in the Australian market.
Flynn has a proven track record of turning around struggling brands in the US, and it sees Australia as a lucrative opportunity for its portfolio of fast-food chains.
Pizza Hut expects to record sales of $300-$310 million for the 2023 calendar year, while Domino’s reported sales of $1.4 billion in Australia and New Zealand in the year to June 30, 2023. The gap is still huge, but Pizza Hut is determined to close it.
Will Pizza Hut be able to make a comeback and challenge Domino’s for pizza supremacy in Australia? Only time will tell, but one thing is certain: the pizza wars are heating up, and consumers can expect more choices, deals and innovations from both sides.
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