Pizza Hut Bets on $5 Flat Pizzas to Win Back Customers
Pizza Hut is banking on a new budget-friendly menu item to revive its struggling U.S. business.
The chain on Wednesday introduced Crafted Flatzz, a thinner, crispier spin on its Personal Pan Pizza, priced at $5 for a single serving. The offer, available for a limited time until 5 p.m., is aimed squarely at lunch customers – an area the brand admits it has underperformed in.
The move comes after seven consecutive quarters of declining U.S. sales for the Yum! Brands-owned chain. Executives have pointed to confusion around Pizza Hut’s promotions as a major factor driving customers to competitors such as Domino’s and Papa John’s, which have sharpened their value messaging and menu innovation.
In the second quarter, Pizza Hut’s U.S. sales dropped 5%, while Domino’s posted 3.4% growth and Papa John’s notched a 1% gain. Both rivals credited refreshed deals and new products for their rebound, from Domino’s Parmesan Stuffed Crust and DoorDash delivery tie-up to Papa John’s $6.99 “Papa Pairings” menu.
Yum! Brands CEO David Gibbs recently acknowledged Pizza Hut’s weakness in what he called a “competitive value landscape.” Analysts agree. “Pizza Hut has trailed because its value message hasn’t stood out like Domino’s and Papa John’s,” said R.J. Hottovy, head of analytical research at Placer.ai.
The new Flatzz lineup – offered in flavors such as pepperoni, three cheese, chicken bacon ranch, Nashville hot chicken and “The Ultimate” with multiple toppings – is designed to attract diners who want pizza without committing to a full pie.
Chief executive Aaron Powell said targeting the lunch crowd is a “significant opportunity,” noting that more than two-thirds of the chain’s pizzas are sold after 4 p.m. “People love pizza all day,” he told CNN. “This is a great example of outstanding value.”
Analysts say the strategy could help Pizza Hut improve its value perception and boost midday traffic, which remains below pre-pandemic levels. But with consumers tightening budgets and rivals doubling down on deals, the brand faces an uphill battle to regain its slice of the market.
