Pizza Hut rolls out new lower-fat pie: sector leader echoes QSR lean-food trend

Nation's Restaurant News, Oct 27, 2003 by Amy Garber

DALLAS -- Segment leader Pizza Hut, eager to sustain a recent same-store sales boost, introduced a lower-fat pie called "Fit 'N Delicious," made with a traditional thin crust but topped with half the usual cheese and leaner meats in order to trim the calories in each slice.

While echoing recent initiatives in the burger sector, the introduction contrasts with the latest product launches by Pizza Hut's biggest rivals--Domino's and Papa John's--which are touting specialty pizzas with more indulgent offerings, such as steak and bacon.

"Pizza Hut is the first in the pizza restaurant industry to take a step toward addressing a delicious alternative to America's favorite food," Tom James, the chain's chief marketing officer, said in a prepared statement.

The nation's burger chains--after being hit last year with obesity lawsuits that eventually were dismissed--were first to launch a plethora of menu options perceived to be more healthful. Among those were premium entree salads from Wendy's and McDonald's, Burger King's low-fat chicken sandwich line and a turkey burger from Jack in the Box.

Pizza Hut, which is owned by fast-food giant Yum! Brands Inc., said in a statement that it was looking to provide a lighter option for "consumers' changing lifestyles." One slice of Pizza Hut's new pie, depending on the toppings, has 3.5 grams to 5 grams of fat, 25 percent less than what is in the chain's Thin 'N Crispy variety. A typical slice of the Fit 'N Delicious pizza has 150 calories, versus up to 450 calories per slice in the Stuffed Crust variety, according to published reports.

The product launch carne as Port Washington, N.Y.-based NPD Group, a market research firm, released the findings of a new study that said Americans recently have lost weight for the first time in six years. Fifty-five percent of the U.S. population was overweight in 2003, versus 56 percent in 2002, according to the "Annual Eating Patterns in America" study, which tracked the body mass index of 5,000 adults. NPD said 53 percent of the population frequently check food labels in an effort to avoid harmful substances, versus 51 percent in 2002.

Although Pizza Hut has taken the lead in promoting lighter alternatives, Domino's insisted that the offering is nothing new to consumers.

"The beauty of pizza is that it is customizable," said Tim McIntyre, Domino's vice president of corporate communications. "You can order half the cheese on a Domino's Pizza or double the cheese or no cheese. And you can order vegetables versus meats so that you can have a lower-fat, better-for-you pizza today--just us you could for the last 42 years that we have been in business--based on the combination of items that you put on the product."

Meanwhile, Domino's is extending its Philly Cheese Steak pizza promotion, which was launched in early September us a limited-time offering that was slated to end next month, "well into 2004, while we then consider what to do with it over the long term," McIntyre said. "Consumer response has been remarkable."

Domino's sold more of the specialty pizza in the first two weeks of the launch than it expected to sell during the entire 12-week national promotion, he added.

The Philly Cheese Steak pie is topped with steak, green peppers, mushrooms, onions, provolone and American cheese. The nation's second-largest pizza chain is promoting a medium-size pie for $9.99 with any second medium pie for $5 more.

Domino's was expected to release third-quarter results Oct. 21. The Ann Arbor, Mich.-based company reported a 0.3-percent decrease in comparable-restaurant sales for the quarter ended June 15, several months before the new pizza was introduced.

Meanwhile, Papa John's, the nation's third-largest pizza chain, unveiled nationwide in September two specialty pizzas at $10.99 each: a Barbeque Chicken & Bacon and a Hawaiian Barbeque Chicken. Both pies feature grilled, all-white-meat chicken, bacon, sliced onions and barbeque sauce, but the Hawaiian pie also is topped with pineapple.

Earlier this month the chain made its debut in China, marking "the first of numerous planned Papa John's restaurants in Shanghai and the surrounding provinces of China," the company said. The franchised restaurant has Papa John's traditional menu as well as such unique pies as a ham, shrimp, mushrooms, green peas and pineapple pizza and another offering grilled chicken, shrimp, mushrooms, tomatoes, Chinese pickles and creamy Alfredo sauce.

Still, Papa John's International continues to face sagging same-store sales, which were flat for fiscal 2001 and negative in fiscal 2002. Papa John's last reported an increase in annual comparable-restaurant sales in 2000. Most recently, the Louisville, Ky.-based company posted a 4.8-percent decrease in systemwide same-store sales for the third quarter ended Sept. 28.

In contrast, Pizza Hut, after suffering a slump in the first half of the year, posted a 3-percent increase in same-store sales for the third quarter ended Sept. 6.

The chain now is looking to sustain its momentum with Fit 'N Delicious, which includes six recipes that run the gamut from diced chicken, red onion and green pepper to ham, pineapple and tomato. In addition, customers can select from three of eight specified toppings, including green pepper, red onion, mushroom, tomato and pineapple, and one lean meat--either chicken or ham--to build their own lower-fat pie. The 12-inch medium, starting at about $9, and the 14-inch large, priced at more than $11, will be available nationwide later this month.