Pizza News

Pizza Hut Plans to Go After Younger Consumers in 2023

  • Pizza Hut is targeting younger customers who are looking for value with menu items like the Pizza Hut Melt.
  • The chain has a three-pronged strategy to grow sales in 2023, according to CEO Aaron M. Powell.

The new Pizza Hut Melt, launched in October 2022, is part of a plan to make the venerable pizza chain more appealing to younger consumers, according to CEO Aaron M. Powell.

In a December 19 report by Food Business News, Powell was quoted as telling Yum! Brand investors that the Pizza Hut Melt is aimed at young people who are looking for value. It’s also meant to help the brand evolve from a special-occasion spot for older generations to an “everyday” choice for everyone.

“It really explains not only the individual-use occasion but everything we’re doing across our business to be younger and more everyday,” he said, according to Food Business News. “It’s intentionally designed for young people to like it. Value is very important—$6.99. We are competing with everybody. Our people are not looking at other pizza competition.”

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Pizza Hut will execute a three-pronged strategy in 2023, including an open kitchen that will “show the consumer their food, show the fresh product right in front of them, [which] gives a great impression and a great consumer experience,” Powell said.

The chain also plans to ramp up its use of technology and is currently testing “digital takeaway cabinets” in Mexico.

Thirdly, Powell said, “Delivery-focused assets are [being] optimized for takeout delivery. They are better paybacks, lower capital costs. You’ll see that the U.S. system of 6,500 restaurants [is] transforming [and] already becoming more and more delivery-focused assets.”

The Ad Exchanger website, meanwhile, reports that Pizza Hut plans to spend more money to promote its loyalty program to boost digital orders. The company will also focus heavily on CTV, or connected TV, advertising. CTV refers to an internet-connected device used for watching TV or videos online, such as smart TVs and gaming consoles.

“It’s not a secret that Pizza Hut historically has been more popular with older people than with younger people, and there are challenges with that,” Powell said. His goal is for the brand to be  “as popular with my daughters as it is with my generation.”