“Pizza Hut” gets a healthy makeover

6 10 2008
Pasta Hut, Image for DailyMail

Pasta Hut, Image from DailyMail

Pizza Hut, famous for its pizzas (no prizes for guessing), is launching a new healthier menu which is to include pastas. As a part of this revamp, 30 of its branches in the UK are to be re-branded to “Pasta Hut”, for the time being atleast, to reiterate the point that it is going to sell pastas. This re-brand is expected to cost £100m and will last 6 years. Pizza Hut has over 700 franchises in the UK and the first one opened in 1973, over 35 years ago. They hope that this move will help put the brand a upmarket position with a sophisticated and chic atmosphere that will clearly give it an edge over its competitors.

It seems that Pizza Hut is trying to attract health conscious middle-class people affected the credit crunch who are looking to downgrade, but are still looking for a more healthier, more wholesome option. This is the only way it is going to survive the current economic climate since it is likely that many of its current customers belonging to the lower income group would be downgrading to cheaper options and hence Pizza Hut has to somehow attract new customers.

However, not a lot changes as by re-branding to Pasta Hut, it is again restricting itself to a particular product line, like it did before, with pizzas. Currently, pasta accounts for around 3% to 4% of the sales, but Pizza Hut’s chief executive in Britain, Alasdair Murdoch, hopes it will account for around 10% soon.

Those willing to try it out should go to the following website http://www.pastahut.co.uk/Home

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Retail Sales affected by Wet Weather

9 09 2008

According to the figures released by the British Retail Consortium, retail sales fell for the third consecutive month as the wet weather kept most of the shoppers indoors. Like-for-like sales for August were 1% lower than last year. DIY and gardening product sales fell due to the wet weather. However, furniture and home ware product sales fell the most.

 On the other hand, the appalling weather conditions and the fact that many are avoiding eating out due to tightening budgets, meant that many preferred to cook at home which in turn saw the sales of food and drink grow significantly.

http://uk.reuters.com/article/businessNews/idUKL89821720080908

http://www.londonstockexchange.com/en-gb/pricesnews/investnews/article.htm?ArticleID=18770586

http://business-easy.blogspot.com/





Food prices rise by 8.3%

6 09 2008

It was reported this week by the BBC that food prices have risen by 8.3% since January this year. This is based on the figures from a survey carried out by Verdict Research specifically for the BBC.

A packet of ham, a pack of four croissants and a medium sized chicken were among the seven products whose individual prices had risen by more then 40%. Among the 13 categories into which all the products were classified, Meat and Fish rose the highest, by 22.9%, followed by Store-cupboard items and Fresh Fruits and Vegetables which rose by 15% & 14.7% respectively.

Inflation is also affecting the sales of organic produce which fell by 8.1% as compared to last year according to the analysts TNS. Families with low income are unable to afford the high price of organic produce and more people are increasingly switching to buying supermarket own-brand products.

Supermarket Sainsbury’s believes that most people no longer perceive supermarket own-brand products in a negative manner nor are they embarrassed of buying them and are beginning shift to buying own-brand products to help cuts their costs. According to Marketing Week, Sainsbury’s research showed that a minority of the people believed that the brand they bought reflected on them as a person. To make the most of the current situation, Sainsbury’s launched an ad campaign on the 5th of September called “Switch & Save” to encourage their customers to buy the supermarket’s own-brand products. The link to watch the new Sainsbury’s advertisement is given below.

http://business-easy.blogspot.com/

http://news.bbc.co.uk/1/hi/business/7597703.stm

http://www.marketingweek.co.uk/cgi-bin/item.cgi?id=62302&d=254&h=5&f=3

http://www.youtube.com/watch?v=6u-P9C2obec