Over the weekend while watching the college football season unfurl, a commercial caught my eye. Subway was offering a deal where select 12-inch sandwiches were offered for $6.99. While the days of the “$5 Footlong” passed years back, it is still quite the step up to see the signature sandwich going for a 40 percent premium – and that is on special. This is a trend across the food service economy, as many major chains are sporting vastly higher prices and, as a result, lower traffic and sales figures.
McDonald’s has been trying to regain sales momentum, Starbucks had a rough quarterly report, and the same was seen for KFC. In this rough economy, there are all manner of desperate plays being conducted, with possibly one food sector showing resilience, that being pizza. Domino’s managed to experience growth in its second quarter, and Pizza Hut saw its same-store losses ebb to near break-even territory. The competition and deal-making in play are reaching desperation levels for many chains, and one from Pizza Hut is revealing.
More of a stunt really, this promotion sees the company offering a pizza box “table,” one that unfolds to become a stage for your newly purchased pie. Available as a takeout promotion, this is an offering for a specific customer. The common scene of people moving into a new home often sees it played out where a first meal is consumed before fully unpacking, often on the floor, and often involving either Chinese takeout or more commonly a pizza, or a few, depending on the crew involved.
“Many can relate to the chaos that comes with moving, and the last thing you want to worry about is unpacking to enjoy a hard-earned meal at the end of a long day,” said Pizza Hut’s chief marketing officer, Melissa Friebe, in a statement.
This novelty promotion is not exactly expected to impact the bottom line significantly next quarter, but it is an effort to cement the brand with new arrivals to a region. The hope is to have the phone number and convenience of the nearest location established with the new tenants. What is revealing about this particular promotion is seen in the limited availability.
This “pizza table” promotion is only offered up in select locations in the country. Three cities in particular have this option for consumers – Charlotte, Dallas, and Orlando. These were chosen based on data from Penske rental trucks, indicating cities currently among those as the targeted locations for one-way rentals for moving. This is an annual list put out by the trucking corporation, and these three cities chosen by the pizza chain landed in the top 7 of Penske’s list of 2023 preferred destinations.
The most telling item found on the Penske moving list is the states involved in the migration. Texas (four cities) and Florida (three cities) dominate, with Georgia and North Carolina adding to the list. All are regarded as red states politically, with Las Vegas maybe introducing Nevada as the lone purple holdout in the top 10. This indicates how people are shifting based on employment, cost of living, and other factors influencing the desire to change their homestead preferences.
It appears at least that one hoped-for result from the pizza multinational in the challenging environment brought on by Bidenomics is to appeal to those moving to red states, recognizing where the customers are relocating to and hoping to tap into their new localized spending habits. The promotions may be regarded as bordering on stunt performances, but the efforts are rooted in firm data.
