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

  • Asian stocks mixed after Wall Street sees gains

    Economic CTV News
    BEIJING - Asian stock markets were mixed Tuesday after Wall Street gained as investors looked ahead to this week's gathering of central bankers in Jackson Hole, Wyoming. KEEPING SCORE: Hong Kong's Hang Seng index gained 1 per cent to 27,421.58 points and Seoul's Kospi added 0.3 per cent to 2,362.40. Source
  • Average Canadian mortgage nears $200K, up 5% in a year

    Economic CBC News
    Canadians owe more than ever before on their mortgages, but fewer and fewer borrowers are falling behind on their payments. That's one of the major takeaways from a report published Tuesday from credit monitoring firm TransUnion, which looked at every active credit file across the country to gauge the financial health of borrowers and consumers. Source
  • Border-beer case could end Canadian federalism, N.B. government argues

    Economic CTV News
    FREDERICTON - A battle over cross-border beer sales threatens to end Canadian federalism as it was originally conceived, the New Brunswick government argues in a submission to the country's top court. In a statement of facts to the Supreme Court of Canada, the province says allowing a New Brunswick man to purchase alcohol in a Quebec border town could ultimately "redesign Canadian federalism. Source
  • Stop the presses: Globe and Mail ends print edition in Maritimes

    Economic CBC News
    The Globe and Mail will stop delivering its print edition to the Maritimes, the newspaper said Monday. Phillip Crawley, the publisher and CEO, said it followed the decision made in 2013 to stop printing in Newfoundland and Labrador. Source
  • Globe and Mail to scrap print edition in Atlantic Canada later this year

    Economic CTV News
    TORONTO -- The Globe and Mail is putting a stop to its daily print edition across Atlantic Canada later this year. Publisher Phillip Crawley says the national newspaper plans to halt production for the East Coast version on Nov. Source
  • German softwood imports up tenfold in wake of U.S. duties on Canadian industry

    Economic CTV News
    OTTAWA -- U.S. imports of softwood from Germany have grown tenfold in the first half of the year as punishing duties pushed imports of Canadian softwood down. RBC Capital Markets analyst Paul Quinn says Canadian lumber producers have plunked down an estimated $500 million so far in countervailing and antidumping duties after the U.S. Source
  • Home Capital class-action lawsuit settlement approved by Ont. court

    Economic CBC News
    An Ontario court has approved the settlement of a $29.5 million class-action lawsuit by investors against alternative mortgage lender Home Capital Group Inc. The Ontario Securities Commission approved a settlement earlier this month with the Toronto-based company and three former executives who agreed they failed to tell investors quickly and completely about fraudulent activity by some mortgage brokers associated with the lender. Source
  • Court approves Home Capital class-action lawsuit settlement

    Economic CTV News
    LONDON, Ont. - An Ontario court has approved the settlement of a $29.5 million class-action lawsuit by investors against alternative mortgage lender Home Capital Group Inc. The Ontario Securities Commission approved a settlement earlier this month with the Toronto-based company and three former executives who agreed they failed to tell investors quickly and completely about fraudulent activity by some mortgage brokers associated with the lender. Source
  • Transat shares surge after positively revising summer earnings outlook

    Economic CBC News
    Shares of Transat A.T. surged on Monday to the highest level since early 2015 after the travel company signalled that it is having a significantly more profitable summer season than it had expected. The Montreal-based company's shares rose as high as $8.85 on Monday before easing back to $8.70 in intraday trading on the Toronto Stock Exchange, up 74 cents from Friday's close. Source
  • Losing PC Financial may give Loblaw the chance to merge PC Points with Shoppers Optimum, analyst says

    Economic CBC News
    Another divorce in Canada's loyalty card sector has consumers stuck in the middle asking questions about the future of an industry still bruised by the actions of some of its largest providers. The Canadian Imperial Bank of Commerce announced last week it is severing ties with Loblaw's President's Choice Financial and rolling PC's two million bank accounts into its Simplii Financial brand starting Nov. Source