Change in strategy: After a decade, Pizza Hut eats up ‘all you can eat’ deal

Published: July 27, 2012

The US-based restaurant chain is the largest pizza chain operating in Pakistan with a network of 44 outlets across the country. PHOTO: FILE

KARACHI: 

After at least a decade, Pizza Hut has decided to eat up its famous all you can eat deal.

The food chain has come up with a new deal namely Ramadan Fiesta all you can eat with a slightly reduced per head cost. However, the catch is that you are limited to one regular pizza.

The US-based restaurant chain is the largest pizza chain operating in Pakistan with a network of 44 outlets across the country and no direct dine-in competitor.

The famous deal had ballooned to Rs799 plus tax totalling to Rs930 right before its death in the final 15 days of Ramazan in 2011. The price gradually rose from Rs599 plus tax in 2010, Rs699 plus tax at the start of Ramazan in 2011 and then jacked up by another Rs100 in the final 15 days of the holy month due to its high demand.

“There was not a single empty table at their Clifton, Zamzama and Gulshan-e-Iqbal branches during Iftaar last year,” said Ammar Ahmed, a regular diner at Pizza Hut in Ramazan for the past many years. You need to be at the branch at least an hour before Iftaar to have any chance of getting a table, said the Karachiite.

The restaurant is now offering one regular pizza, one salad and bottomless soft drinks for Rs595 plus tax per person this Ramazan.

“The new deal is affordable for the average income society,” said Pizza Hut Pakistan General Manager Marketing Marya Khan. The food chain aims to increase its target market by being more affordable to the average income class of the society.

Khan claims no one in the market is able to compete with the deal they are offering.

The localities of Defence and Clifton in Karachi serve as a hub for pizza outlets as some local and international pizza outlets –Domino’s, Papa Johns and start-ups like 14th Street Pizza, Stone Baked and New York Style Pizza of US-style pizza – operate in the same area but focus more on delivery than dine-in. 14th Street, arguably the highest growing chain of the lot, is exclusively available only in Defence and Clifton. Pizza Hut’s Clifton outlet is one of the highest revenue making branch across the country, showing the high demand of the cuisine in the area.

Industry experts told The Express Tribune that the restaurant business will not be able to increase prices this time around and will opt for a price cut this Ramazan because of cut-throat competition thanks to the dozens of restaurants that have opened.

“The trend we have noticed is that one regular pizza is more than enough for an average consumer,” Khan added while explaining the new deal. Additionally, if one can’t consume the entire pizza, they can take the leftover pizza home, she said. The official mentioned this as another issue in the previous deal. “A lot of food used to be wasted in the all you can eat deal,” Khan said. Khan was quick to deny that they reduced the price due to pressure from competition. “There were no financial pressures to reduce the price,” she said.

Asked if changing the deal made any difference to sales, Khan said, “It’s too early to comment about the impact of this deal on our sales. “Based on the feedback from our restaurants, we are getting more transactions,” she said. We will be able to give exact comparison after recording weekend sales,” she added.

Published in The Express Tribune, July 27th, 2012.

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Reader Comments (28)

  • Falcon
    Jul 27, 2012 - 7:59AM

    A great move. It seems that the competition is finally working and they are trying to re-position themselves as an affordable eating outlet. Most likely, they are trying to pre-empt their competitors by penetrating the low price market that is being captured by the low cost players using delivery based business model.

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  • Muhammad Talha
    Jul 27, 2012 - 9:23AM

    Pizza hut has lost its charm with a new deal. thats not enough for iftari, it can be used as a mid night deals for night dreamers.

    Marya khan lets be multinational again, you are now behaving like a local saith mentality.

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  • Jafar
    Jul 27, 2012 - 9:32AM

    If for nothing else, it is good for reducing the wastage of food in such all-you-can-eat deals.

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  • USMAN786
    Jul 27, 2012 - 9:49AM

    Donot call this Eaat as much as u can when u r restricted to 1 regular pizza only. i remember eating ten slices alone

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  • Lahori
    Jul 27, 2012 - 10:59AM

    It’s PKR 595 without tax. With tax it’s PKR 690.

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  • Naveed Javed
    Jul 27, 2012 - 11:25AM

    PTI’s CHANGE? :D

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  • Donga Bonga
    Jul 27, 2012 - 11:29AM

    Why r soft drinks “bottomless” whereas u have to pay for every sip of water? Has anyone ever thought of that?

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  • umayr masud
    Jul 27, 2012 - 11:53AM

    Fraud in the name of marketing is never a good idea. One should open their eyes and just look at their own page, read the comments under the image.

    https://www.facebook.com/photo.php?fbid=268183249949375&set=a.256203587814008.44310.132665043501197&type=1&theater

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  • ABZ
    Jul 27, 2012 - 1:09PM

    Pizza ut Ramzan Pakage is totally CRAP…they offer thick bread dough,which they call pizza with hardly any meat visible on it,…have been there in 2 ramzans some 4 years ago and realized that PIZZA HUT is be fooling the consumers and consumers too are willing to be fooled..

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  • Ozymandias
    Jul 27, 2012 - 1:26PM

    @Donga Bonga:
    Perhaps they have a share in insulin manufacturers?

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  • Jul 27, 2012 - 2:03PM

    @Donga Bonga:
    Sugar drinks give you diabetes, so you pay a lot later in life to Pharma multinationals.

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  • Jul 27, 2012 - 2:10PM

    All you can eat deals not meant for desis since they tend to eat so much as there is no tomorrow! Besides food is wasted also. Eat less & live longer besides being healthy & happy.

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  • Awans
    Jul 27, 2012 - 2:29PM

    It is better to have two Aaalo Walay Naans for 20 Rs from Khan Naan Center rather than spending such an Amount on Worthless Pizzas.

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  • zeeshan
    Jul 27, 2012 - 2:41PM

    No i am not disappointed…there are alot more things to be disappointed so if pizza hut changes a deal then whats a big deal…i am disappointed with the issue you raise

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  • Mohsin Ali Syed
    Jul 27, 2012 - 2:47PM

    While Pizza Hut has rolled back on it’s all you can eat offer during the month of Ramadan, their communication to do so is an act of misleading advertising. From reading the press ad and what all has been displayed through social media sites, Pizza Hut’s Ramadan deal is offering all you can eat for Rs. 595 + tax. After reading this article I came to know that the offer is not all you can eat, but rather just one regular pizza, salad and free refills. What a disappointment.

    While Pizza Hut is re-positioning itself as a dine-in restaurant, making such mis-leading claims is making their loyal customers feel disappointed. Perhaps a change in communication highlighting what the offer really is would be appreciated.

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  • Ahmad Uzair
    Jul 27, 2012 - 2:58PM

    ALL You can eat was a quite good deal. I dnt know why they had ommitted such a good offer.

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  • Babar
    Jul 27, 2012 - 3:15PM

    How many pizzas you think a person can eat anyway?

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  • Naumann Malik
    Jul 27, 2012 - 4:32PM

    Pizza was food for the poor laborers in Italy. Funny how capitalism & its followers call it the food for medium income families.

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  • Singh
    Jul 27, 2012 - 6:01PM

    Every time we order Pizza from Pizza hut cost me around $25.00 delivered. Order consist 2 medium Pizza (one Veggie & one peperoni) 10pc hot chicken wing.
    Compare price US vs Pak you guys getting better deal. 690PKR = $7.00 only

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  • sami
    Jul 27, 2012 - 8:02PM

    i am no more a Pizzahut customer (once I was their loyal,regular customer). would prefer Karachi based California Pizza, or Dominos over PizzaHut.And as for the Ramzan deals….PH is ok. Not a big move. They must focus on their quality and regain the old delicious taste

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  • Jul 27, 2012 - 9:18PM

    Pakistan should allow other Pizza chains to come in. That will boost production of agricultural raw materials.

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  • Hafeez
    Jul 28, 2012 - 12:53AM

    I had visited Pizza Hut a couple of years back in Islamabad for its Iftar deal. It was a huge disappointment since the pizza was all thick dough and some toppings. I am sure they had very low quality pizzas for the iftaar deals than their other deals.

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  • Tring Tring Tring
    Jul 28, 2012 - 2:35AM

    @A.Bajwa:
    “Pakistan” is not stopping other chains from coming in, lol. if you have money, buy a franchise and open. lala

    Regardless, local players are beating Pizza hut..in ISB/RWP u got papa salis and Rahat..Lahore..JalalSons pizza is much better.

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  • ThroneOfThorns
    Jul 28, 2012 - 9:58AM

    From a Marketing and Sales perspective, why did Pizza Hut need to alter their deal when apparently there was not an empty seat in their restaurants in Ramadan for their all you can eat deal? It doesn’t add up. If they wanted to introduce this deal they could have done it for delivery only.

    Not really a fan of Pizza Hut anyway though. In Lahore, Pasta & Pizza and Big Man’s Pizza own it. Better pizzas, better taste.

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  • Hasan
    Jul 28, 2012 - 12:46PM

    You’ve got your facts wrong about 14th Street Pizza. It is no longer exclusive to Defence and Clifton areas. Check their facebook page for information from the source.

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  • Yasir Baig
    Jul 29, 2012 - 4:35AM

    14th Street is now covering bigger radius than before. Please check since we ordered a few times near Tariq Road. Also, I am sure they have given pizza hut a tough time already.

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  • Ali
    Aug 1, 2012 - 11:59PM

    The deal is good, but the name ALL YOU CAN EAT is like cheating the customers. Deal seems good, marketing activity sux!

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  • Asif
    Aug 10, 2012 - 2:42AM

    I really like the upcoming stone baked pizza , the model they are following is good for competition and for the customers as well…

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