Pizza Hut banks on delivery

Consumers have turned to having food delivered to their home rather than go out to a dine-in restaurant, she said.

Pizza Hut's delivery business grew at a double-digit rate last year, rising to 60 per cent of total revenue from 50 per cent in 2007. The company believes that level will be maintained this year.

"I don't have information indicating where we're ranked in the delivery market. But as far as I'm concerned, the No 1 quick-service food in consumers' minds is pizza," she said.

The company this year would expand to new target groups by developing innovative menus as well as increase delivery frequencies.

The company yesterday launched Cheesy Baked Rice, the first rice item to be served in its pizza restaurants, to help lift sales by 30 per cent this year.

"We want to expand our service to consumers who prefer rice to pizza. In general, consumers usually order pizzas for delivery once a week but we assume that customers may order rice dishes more frequently. As a result, we can increase the frequency of our delivery service and maintain the proportion at 60 per cent," she said.

Cheesy Baked Rice is aimed at penetrating new niches such as urban residents who live with small families or in condominiums.

Yum plans to spend Bt30 million on promoting this new product this quarter.

Pizza Hut so far has not been affected from the economic slump as spending per bill is still at the same level of last year, she said. For dine-in service, spending per bill is over Bt400, while spending per bill for delivery is Bt400.