Pizza Hut is entering the burger industry.
The well-known restaurant chain, which is a division of Yum Brands Inc. YUM, 1.39%, will soon introduce a new Cheeseburger Melt as a member of its Melts lineup of sandwich-style dishes. In particular, instead of the typical bun, the menu item consists of beef, onions, applewood-smoked bacon, mozzarella, and cheddar cheese, all of which are served between two thin pieces of pizza crust.
Though it’s not quite a traditional burger, Pizza Hut is still marketing it as such.
In a statement, the restaurant chain said, “Pizza Hut wants burger enthusiasts to cheat on their usual burger chain and prove their new favorite cheeseburger is from a pizza place instead.”
When MarketWatch asked Pizza Hut representatives for more information regarding the product launch, they didn’t reply.
Pizza Hut has recently had difficulties with sales. Pizza Hut’s same-store sales in the United States fell by 6%, according to Chief Executive David Gibbs during a conference call that accompanied Yum Brands’ most recent quarterly earnings report. Despite this negative news, Gibbs highlighted some positive developments for the brand, including growth in India.
Pizza Hut’s decision to stick with burgers, according to analysts and observers in the restaurant industry, is not surprising. The chain is just replicating an industry playbook in an attempt to grow and build a brand apart from its main offering.
Mark Kalinowski, an industry analyst with extensive experience in the restaurant business, said, “A restaurant is ultimately a box, and you want that box to be as productive as possible.”
Take note of McDonald’s -0.42% MCD: Though it first gained notoriety as a burger chain, it is now highly regarded for its breakfast offerings and chicken varieties. Not to be overlooked, McDonald’s briefly experimented with pizza.
Nevertheless, the McDonald’s pizza was not added to the chain’s permanent menu, much like a lot of other products that were unveiled and sold with great fanfare. And that illustrates the challenges that eateries could face when stepping outside of their comfort zones.
Not only can it be challenging at times to convince customers that their favorite burger joint also serves delicious pizza, but it can also backfire. Additionally, restaurants occasionally need to purchase new equipment or modify their operating procedures in order to introduce items that are not part of their regular menu.
In addition, until the product really takes off, the expense and trouble might not be justified.
Epic Burger’s CEO, David Grossman, says he learned that lesson when he added chicken wings to the menu in addition to burgers. Epic Burger is based in Chicago. Grossman chose to discontinue serving the poultry dish, despite the fact that his customers enjoyed it, because it necessitated more frequent oil changes for his fryer, which resulted in inefficiencies in the operation.
These days, Grossman is hesitant to advertise products besides his signature hamburgers. He said, “You really need to master what you’re good at and stick to it.”
However, accomplishments go beyond McDonald’s chicken sandwiches. Remember that many pizzerias have had great success selling wings. In addition, food writer and pizza expert Arthur Bovino noted that a few New York City pizzerias have become well-known for their Jamaican-style beef patties.
It all boils down to giving the customer what they want, says Bovino.
“These little menu additions are sometimes a way for businesses to blend in with the neighborhood’s culinary preferences,” Bovino stated.
Pizza Hut is not the only pizza restaurant that has entered the burger business.
Take Mercato Italian Kitchen & Bar, a small chain of restaurants with locations in Connecticut. Burgers have proven to be a hit, especially with lunchtime customers.
Sam Devellis, co-owner of Market Hospitality Group, the restaurant chain that came up with the concept for Mercato, said that the key was to give the burgers an Italian theme, such as topping them with an Italian-style cheese.
Devellis continued by saying that when it comes to creative thinking, you can never think too far. He said there were some menu items he wouldn’t feel comfortable serving.
“I’m not sure if I would serve Peking duck at one of my Italian eateries,” said Devellis.
