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Just finished making an episode about:
What caused Pizza Hut's decline, and how Domino's dethroned it in 2017.
Here's a thread:
What caused Pizza Hut's decline, and how Domino's dethroned it in 2017.
Here's a thread:
1)
In the 1980s, Pizza Hut was an incredibly innovative company (at least as a fast-food chain).
Their marketing team and product development team had fantastic synergy which allowed their marketing minds to turn their wild ideas into actual products.
In the 1980s, Pizza Hut was an incredibly innovative company (at least as a fast-food chain).
Their marketing team and product development team had fantastic synergy which allowed their marketing minds to turn their wild ideas into actual products.
2)
The team was given a deadline to launch a new invention every 6-8 weeks. This is breakneck speed considering that it takes at least 18 months to test & create a new pizza.
They created a lot of products that we would consider weird. But importantly — they were creating.
The team was given a deadline to launch a new invention every 6-8 weeks. This is breakneck speed considering that it takes at least 18 months to test & create a new pizza.
They created a lot of products that we would consider weird. But importantly — they were creating.
3)
This is when they created the Stuffed Crust pizza, one of its best-ever creations.
But when the 2000s arrived, Pizza Hut stopped putting in as much effort in innovation.
This is when they created the Stuffed Crust pizza, one of its best-ever creations.
But when the 2000s arrived, Pizza Hut stopped putting in as much effort in innovation.
4)
When the recession hit in 2008, consumer habits changed.
With little to spend, people opted for frozen pizza, and if they had a chance to eat pizza, they chose delivery over dining in.
When the recession hit in 2008, consumer habits changed.
With little to spend, people opted for frozen pizza, and if they had a chance to eat pizza, they chose delivery over dining in.
5)
Here's the problem: Pizza Hut has been built as a dine-in restaurant. Majority of its stores were big enough to accommodate a lot of customers.
When it came to delivery, it was behind Domino's. Domino's was BUILT on the idea of pizza delivery.
Here's the problem: Pizza Hut has been built as a dine-in restaurant. Majority of its stores were big enough to accommodate a lot of customers.
When it came to delivery, it was behind Domino's. Domino's was BUILT on the idea of pizza delivery.
6)
Back in 1979, Domino's first ran the "30 min or less" campaign where you'd get the pizza for free if they couldn't deliver it in 30min or less.
They've since scrapped this campaign, but the positioning of the brand as the go-to pizza place for delivery has been established
Back in 1979, Domino's first ran the "30 min or less" campaign where you'd get the pizza for free if they couldn't deliver it in 30min or less.
They've since scrapped this campaign, but the positioning of the brand as the go-to pizza place for delivery has been established
7)
They didn't stop there. People weren't completely happy with the taste of Domino's pizza, so the brand decided to finally act on this.
A major overhaul of their menu transformed the quality of Domino's pizza. It's not mind-blowing good, but at that price, it'll do.
They didn't stop there. People weren't completely happy with the taste of Domino's pizza, so the brand decided to finally act on this.
A major overhaul of their menu transformed the quality of Domino's pizza. It's not mind-blowing good, but at that price, it'll do.
8)
Pizza Hut's response? In 2014, it went through a major rebrand + new menu.
The rebrand further added to the identity crisis of the brand. It felt like it was trying to be a fast-casual resto. Felt like it was a middle-aged man trying to dress like a kid
It just didn't work
Pizza Hut's response? In 2014, it went through a major rebrand + new menu.
The rebrand further added to the identity crisis of the brand. It felt like it was trying to be a fast-casual resto. Felt like it was a middle-aged man trying to dress like a kid
It just didn't work
9)
The result?
Domino's grows by 3200% since 2010 (S&P500's growth is only 164%).
In 2017, Domino's becomes America's Biggest Pizza Chain by Sales.
Pizza Hut is now transforming its dine-in locations into smaller stores optimized for delivery.
The result?
Domino's grows by 3200% since 2010 (S&P500's growth is only 164%).
In 2017, Domino's becomes America's Biggest Pizza Chain by Sales.
Pizza Hut is now transforming its dine-in locations into smaller stores optimized for delivery.
10)
If you've made it this far, you may be interested in listening to our podcast.
I talk about brand disasters and the origin stories of brands.
Spotify: https://spoti.fi/3cExA8V
Apple Podcasts: http://tiny.cc/ynmosz
If you've made it this far, you may be interested in listening to our podcast.
I talk about brand disasters and the origin stories of brands.
Spotify: https://spoti.fi/3cExA8V
Apple Podcasts: http://tiny.cc/ynmosz
11)
And I would like to thank these people. Been following them, and I got this idea of making this thread from them. I have been learning a lot from these guys:
@andrewleese89
@GoodMarketingHQ
@jackbutcher
And I would like to thank these people. Been following them, and I got this idea of making this thread from them. I have been learning a lot from these guys:
@andrewleese89
@GoodMarketingHQ
@jackbutcher
