Yum CEO says Pizza Hut needs to be more like Uber

NEW YORK -- Yum CEO Greg Creed thinks he figured out why sales at Pizza Hut have gone cold: The chain needs to be more like the car-hailing service Uber.

See Full Article

"If you think about the Uber experience, it's easy to use, it's easy to pay, it's very easy to track," Creed said in a phone interview from Dallas late Thursday after Yum Brands' investor day.

During a presentation, Creed said there was a time when the way to beat the competition was to have a better product. He now believes that convenience trumps quality.

Creed said the insight that "easy" beats "better" will help Yum energize its three fast-food chains, which also include KFC and Taco Bell. That means everything from shaving time off drive-through waits to pushing into areas like catering, delivery and mobile ordering.

With Pizza Hut in particular, Creed says the chain hasn't paid as much attention to making life easier for customers. Even people who prefer the chain's pizzas are only willing to wait about two minutes more for it, he said. Yet Pizza Hut takes more than two minutes longer to deliver than its competitors.

It's one of the reasons Yum thinks Pizza Hut has flagged in the U.S. as rivals have prospered. In recent years, Domino's has credited the convenience of its online ordering and mobile app for fueling its steady growth. Last year, its sales rose 7.5 per cent at established U.S. locations, following growth of 5.4 per cent the previous year.

In the meantime, Pizza Hut's sales fell 3 per cent at established locations last year, following a 2 per cent drop in 2013.

To get the chain back on track, Creed said he made Pizza Hut's management team get in a room about a month ago to come up with a "clear brand identity." They were told not to come out until they did.

"One of the joys of being the boss, you can lock other people away," said Creed, who stepped into the CEO role this year.

Nine hours later, Creed said he got a text from Pizza Hut's chief brand officer Jeff Fox asking for permission to leave the room -- they thought they had an answer. That's when they came up with the insight that "easy" beats "better."

In addition to Uber, executives cited online retailer Amazon as an example of how being easy for customers wins business. Creed noted that the insight doesn't mean the company is giving up on being better as well.

It's not yet clear exactly how Pizza Hut plans to act on its new mantra. As part of its menu revamp late last year, the chain also redesigned its website. Creed assured investors Thursday the company had a plan in store, but that he couldn't share details yet for competitive reasons.



Advertisements

Latest Economic News

  • Jimmy Choo is on the market

    Economic CBC News
    A Jimmy Choo shoe is seen in a shop in downtown Rome in March 2016 file photo. (Max Rossi/Reuters) British luxury retailer Jimmy Choo is seeking offers for the company as part of a review of its strategic options to maximize shareholder value, it said on Monday. Source
  • Asian stocks mixed as investors examine French election outcome

    Economic CTV News
    TOKYO -- Asian stocks were mixed Monday as investors weighed the results of the first round of the French presidential election. KEEPING SCORE: Japan's benchmark Nikkei 225 rose 1.3 per cent in morning trading to 18,870.24. Source
  • Oregon teens sells $1 million in custom socks

    Economic CTV News
    SHERWOOD, Ore. -- Seventeen-year-old Oregon resident Brennan Agranoff spends his days going to school, doing chores and running his custom-design sock business. It's no simple hobby: Agranoff is the founder and CEO of HoopSwagg, and he has already sold $1 million in custom socks. Source
  • Oregon teen sells $1 million in custom socks

    Economic CTV News
    SHERWOOD, Ore. -- Seventeen-year-old Oregon resident Brennan Agranoff spends his days going to school, doing chores and running his custom-design sock business. It's no simple hobby: Agranoff is the founder and CEO of HoopSwagg, and he has already sold $1 million in custom socks. Source
  • The sad saga of North Korea's ATMs

    Economic CTV News
    PYONGYANG, North Korea -- No modern airport terminal is complete without an ATM, and Pyongyang's now has two. But they don't work -- because of new Chinese sanctions, according to bank officials -- and it's not clear when they will. Source
  • Real estate reality check: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC's Marketplace. Get this in your inbox every Friday. Sign up here. House cooling Time for some cold water on that hot southern Ontario real estate market? Here's how the province is proposing to rein in the madness. Source
  • Birthing April the Giraffe becomes cash cow for tiny U.S. zoo

    Economic CTV News
    April the giraffe has become a cash cow for a tiny zoo in rural upstate New York, thanks to a livestream of her pregnancy and birth that has enthralled viewers around the world. Owners of the Animal Adventure Park won't say exactly how much they've pulled in from all the April-related ventures, but marketing experts who specialize in viral internet campaigns conservatively estimate the haul in the hundreds of thousands of dollars. Source
  • Despite special regulations, edible entrepreneurs hope to take bite of Canada's marijuana market

    Economic CBC News
    Amid all the uncertainty about the federal government's ?plans to legalize marijuana by mid-2018, a culinary mystery stands out: How will marijuana-infused food products, commonly called "edibles," fit into the legal regime? Ottawa has signalled that regulations governing the sales of edibles won't be ready by the time recreational marijuana becomes legal. Source
  • 'Vital for tenants' or 'textbook' bad policy: How rent control works in NYC

    Economic CBC News
    Before Ontario's provincial government announced its plans to expand rent control, some economists were already sounding alarm bells about imposing the controversial policy. In response to some Toronto tenants who say their rents have doubled, the government on Thursday unveiled its Fair Housing Plan. Source
  • What we can learn from New York's rent control regime

    Economic CBC News
    Before Ontario's provincial government announced its plans to expand rent control, some economists were already sounding alarm bells about imposing the controversial policy. In response to some Toronto tenants who say their rents have doubled, the government on Thursday unveiled its Fair Housing Plan. Source