Wednesday, November 19, 2014

ALOTT5MA PIZZA ECONOMICS DESK:  Occasional commenter Ted noted on Facebook this morning that he wondered just how much of Pizza Hut's revenue comes from folks who, about every three years, basically say "fuck it, I guess we're stuck with Pizza Hut."  I'm guessing it's well north of 10%.

If Tp  - the mean time between when someone will order Pizza Hut based strictly out of desperation -for a given household in America is 1,000 days, and there are about 120M households in America, you've got a daily orders arising from sheer soul-resigning Calvinist predetermination of, say, $1M a day ($8 customer/order/day).  So $365MM.  Yum Brands revenue in 2013 was $11.3 billion.  As a lot of revenue for Yum is overseas and Pizza Hut is just one of there three big brands, this sort of pizza ordering is clearly well in excess of 10% of their American revenue stream.

So, who has that job?  Who is in charge trying to drop Tp from 1,000 days to 750?  


  1. bill.1:13 PM

    Carrie Walsh?

  2. Roger2:27 PM

    I'm at Tp = 12,757 and counting....

  3. Joseph Finn2:43 PM

    I'm amused that there are actually Pizza Huts in the Chicago area, looking at a google maps search.

  4. Really wasn't desperation. It was morbid curiosity about PH's new business model of supposedly upscale ingredients. (Asiago and meatball: yes, B+ acceptable. Balsamic drizzle: pure sugar, no. New sauce: still bland. Mozzarella: still nauseatingly low quality meld of salt and fat.) I'm the sucker who invariably buys the new Ben & Jerry's flavor instead of getting the chocolate chip cookie dough that will make me most happy.