Pizza Hut Slices Test-Marketed To Compete With Domino's

Thursday, 16 Jan 2014 07:03 AM

By Alexandra Ward

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Pizza Hut is test-marketing single-slice pizza at a couple of locations this week and plans to analyze customer feedback to determine whether to take the new venture nationwide. Top competitor Domino's already sells pizza by the slice. 

One of the top three pizza chains in the U.S., Pizza Hut's new by-the-slice option launched Tuesday at its franchises in York, Neb., and Pawtucket, R.I. Spokesman Doug Terfehr told CNN Money that the initiative is a step toward "the next generation of what the restaurant can be like when it comes to ordering pizza."

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According to The Associated Press, the new Pizza Hut slices cost between $2 and $3 and are only available on a thin crust.

Besides Domino's, Chipotle, another rival, is reportedly mulling a move to pizza as well.

But Pizza Hut plans to expand its offerings while continuing to focus on its main goal, which is speedy pizza delivery. To that end, the company is also planning on reducing the number of dine-in restaurants in favor of emphasizing a carry-out format, the AP reported.

The decision to start selling slices of pizza does, however, open the chain up to competition from mom and pop shops that make their business that way, but Terfehr isn’t worried.

He told CNN Money that single slices at Pizza Hut would give customers another option and wouldn't disrupt the current business model, meaning that it can only help business, not hurt it.

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