when brands collide
Posted by Abe Sauer on October 13, 2009 10:00 AM
While it may not strike consumers as groundbreaking, Pizza Hut's direct offering of WingStreet-branded wings is an incredible move in the evolution of fast food branding.
The way current commercials pitch the offer, it might seem WingStreet is a private label of Pizza Hut's. But WingStreet is actually a brand owned by both chains' parent company, Yum! Brands. And business is booming on WingStreet. A company press release claims:
WingStreet is undergoing an aggressive expansion strategy as it plans to add more than 4,000 new points of access within newly built and existing Pizza Hut restaurants within the next three years.
The combination certainly seems popular.
Pizza Hut's move may be in hope some of WingStreet's brand success rubs off. While Yum! Brands' earnings have grown thanks to expansion in Asia, Pizza Hut's have not. The brand has recently had to swallow a 13% drop in sales at Pizza Hut restaurants open at least a year. Yum! Brands chairman and chief executive David Novak recently told investors, "Pizza Hut in the U.S. is obviously struggling. We're not happy with the Pizza Hut business." Novak also said the brand is looking for a new ad agency, to inject some "fresh perspective."
Yum! Brands' brands are no strangers to sharing. Starting in larger metro areas, where rents were high, and later expanding across the nation, chains such as Pizza Hut and Taco Bell started sharing a front door and marquee signage in a single retail space. Before long they were sharing actual counter space. But the brands were clearly separated. That is to say, one could not order a Pizza Hut Black Jack Taco. And that's what makes the new nationally-advertised Pizza Hut offer of WingStreet wings so unique.