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George_Mills

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Pizza Hut has dropped the price of its medium topped pizza to $5 as part of a new effort to entice bargain-hunters.

The discounted product is one of several on a new menu of products priced at $5 each. Other selections include a serving of eight boneless “wings,” pasta, a family-sized cookie or brownie, a double order of breadsticks and four 20-ounce sodas. Patrons need to order at least two items to get the $5 price for each.

George mills
 
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And they are in a race for the bottom. This kind of nonsense is bad for the whole industry.
 
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Pizza hut is hurting as a whole and they dont have a clue how to turn it around, i certainly don’t think 5 dollar lost leaders are the way to go.

Defiantly devalues the brand.

And there CEO said they are more focused on quick and convenient rather then quality
 
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Well i imagine by the end of this year, they will have lost quite a few franchisee’s. And will start to close corporate stores (do they even have any left ?). Because i do not see them changing course away from these trash deals where the only profit is made via royalties and not at the franchisee level.
 
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With their introduction of that spiral of sauce on top of their pies, maybe it represents the tail spin they have entered?
 
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Pizza Hut if feel is one of those companies that will be sold off to some big company who will then sell it off to someone else and on and on and on until they are pretty much gone. I can’t figure our why anyone would order from them. The ones in our area are the biggest c**p holes you could imagine. They are now testing out a sports bar type Pizza Hut a few cities over from us.
 
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pizzapiratespp said:
Pizza Hut if feel is one of those companies that will be sold off to some big company who will then sell it off to someone else and on and on and on until they are pretty much gone. I can’t figure our why anyone would order from them. The ones in our area are the biggest c**p holes you could imagine. They are now testing out a sports bar type Pizza Hut a few cities over from us.
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Didn’t that already happen a few decades back? I thought Pepsico had the hut?
 
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Pizza Hut sucks their pies are disgusting as it is I can’t imagine how much worse they will be for 5 bucks. It’s just going to give their customers 1 more reason not to like them. The one in our neighborhood sucks real bad they have 1 and a half stars on yelp I don’t understand how anyone could have that kind of rating and still be in business. They are going to kill their franchisees after the pay that royalty on the 5 bucks what’s left after that.

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I don’t think the demographic for a $5 pizza is the demographic that uses Yelp. My staff had never heard of Yelp until there was a South Park episode about it.
 
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Somewhat off topic: Whenever I hear stories about deep price drops for food in order to garner greater market share, the old Rive Gauche restaurant in the Georgetown neighborhood of Washington jumps to mind. RG had great food and service, a beautiful restaurant and a reputation second to none … and their prices matched the description I just gave you. Their owners made a point to survey all the top Washington restaurant’s menu prices at least one each year, and if any were considered to be equal to, or higher, than RG, they would RAISE their prices. Their unofficial motto was “we will not be oversold”. The public considered this paradigm worthy and beat a path to their door. My point … if you have great food and great service, never reduce your prices or downplay your elevated status by diminishing it in any way … be proud to command the price you request, because it says something about your pride, your product and your commitment to providing only the best that you can muster.
 
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A bit late to the game here but… after 32 years with DP (just ended) I just shook my head when PH started this. PH has been doing quite poorly for a few years and DP quite well so I guess this was to be expected. It’s just a non-stop brand-pimping cycle. To me, the only way to stay away from this sickness is to distance yourself from the franchise world- at least on that level. Of course, we all understand that this madness spills over into all of us as this cheap pizza crap simply becomes the consumer’s mindset of what a pizza “should” cost. I loved that Wendy’s “4 for $4” campaign and then noted Burger King- instantly- came of with “5 for $4”! They added a cookie! Comical, embarrasing and pathetic! Maybe somebody can make it “6 for $4”… does the straw count? It’s almost like the madness between these players never ends.
Interesting comment from Home Town Pizza, too, regarding demographics and Yelp. I provided outstanding product and service (as a Domino’s store) and- yes, within the confines of the brand, product, etc- but I charged for it… no 5.99, no 7.99, etc. I’ve since been in other DP stores and many sell horrible pizza and provide horrible service but at the 5.99/7.99 for EVERYTHING price points… people simply don’t care… the expectation and assumption is so low that if you just get them something warm and within an hour… they are ok w/ it.
I never could have gotten away with that- nor would I have wanted to- I had a high ticket and large pies averaged $18-22.
 
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If Holt Renfrew were to open in my area, they would fail miserably…No doubt they are a great operation with top quality goods and prices to match, however, the demographics of our area will not support it…Before anyone decides what part of the market they want to go after, they need to make sure their market will support it and there are enough potential clients to be viable…If several shops in a limited market all go after the same demographic, some will certainly be losers…
 
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