Pizza Hut Jumps Into Fast-Food Price War With New $5 Promotions
(Bloomberg) -- Add pizza to the list of food that’s getting cheaper.
Pizza Hut is jumping into the restaurant value wars with lower prices for pasta, boneless wings and a medium one-topping pizza. The Yum! Brands Inc.-owned chain is charging $5 for the items when diners buy two or more, similar to a discount from Domino’s Pizza Inc. Burger King, meanwhile, is advertising $1 chicken nuggets and McDonald’s is pushing a revamped Dollar Menu.
“You look at value, and it’s extremely important to our customers,” Marianne Radley, Pizza Hut’s chief brand officer, said in a phone interview. National television ads for the promotion are starting Thursday, she said.
Despite rising labor and rent costs, restaurant chains are increasingly turning to discounts as the battle for customers intensifies. Pizza Hut is embracing the lower-price strategy after same-store sales declined in the U.S. in the latest quarter, reflecting heightened competition. The company is also pushing online and to-go services and recently expanded its beer delivery.
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