Pizza Hut has resumed operation of 85 per cent of its restaurants from completely shutting down during the initial days of the COVID lockdown.
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Ever since they resumed operation, quick serve restaurants (QSRs) have been trying to impress customers with their COVID era hygiene protocols. The pandemic and the ensuing lockdowns have ravaged businesses that specifically need consumers to step out.
It has been a double whammy for restaurants because of consumers’ apprehensions over ordering ‘outside’ food due to safety concerns. Putting things into perspective, the National Restaurant Association of India (NRAI) suggests that around 30 per cent of restaurants and bars have shut down permanently, and things could get even worse.
Adding to its list of COVID era initiatives, QSR brand Pizza Hut has recently appointed ‘Trust Champions’ at its restaurants in India. These individuals are responsible for ensuring safety and hygiene measures in the kitchen and dining areas.
A Pizza Hut Trust Champion
Over the last few months, the pizza chain saw a departure from its usual communication of value, freshness and new products. It has been replaced by ‘hygiene’. It is among those brands which had to completely halt operations, with sales dipping to zero for a brief stretch.
Pizza Hut operates 431 restaurants in India (180 in Tier-II cities) and has resumed operations in around 80 per cent of its stores. What has helped the brand is its global presence, existing hygiene standards and prowess in delivering food.
A year back (August 2019), deliveries formed 35 per cent of the brand’s business. The share stands at over 63 per cent today. While sales via the Pizza Hut app has grown at 50-60 per cent versus the pre-COVID period, the m-site (mobile website) sales have also grown significantly at 30 per cent.
The brand is adding a new cohort of first-time customers, who are getting used to ordering food online. Pizza Hut is also recalibrating its expansion plans for the next year, with more focus on delivery and expansion in Tier-I cities.
Neha
We interviewed Neha, marketing director, Pizza Hut India, about the brand‘s COVID journey.
Edited excerpts:
"The younger audience, which make up the larger chunk for a brand like us, is all definitely out and about now."
"We are currently clocking even higher takeaway numbers than last year."
"The 3-4 members group is the dominant one. We are seeing very little of the two-member order size in home deliveries."
"The consumption of vegetarian offerings has traditionally been far more than non-vegetarian."
"The lockdown has led to bringing home delivery to the lives of small town consumers as a habit."
"Ordering during the snack period (3pm-7pm) has picked up because of the lockdown timing."
"The biggest change in our advertising has been going completely digital."
"Unlike in other categories like, say, FMCG, where there is a factory and logistics, etc., ours is a lot about people."
"I have the opportunity to tell a story in a way that nobody has done in the past."
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