Given that we could be entering a global recession, it’s not surprising to companies rationlaising their corporate strategy. However one thing that has caught me by surprise is the article I saw on stuff about Pizza hut rebranding as Pasta hut. This seamed particularly interesting given a recent post I read over by Gen Y hipster/Digital native Brenden Jarvis over at Playing to Win aptly entitled “Don’t stuff up your brand”. I’m informed that there will Be a “don’t stuff up your brand part II” so watch that space if you are interested in marketing/branding issues.
It got me wondering what from an economic perspective would make pizza hut do this? Do they think preferences have changed away from unhealthy pizza towards relatively healthy pasta (as long as you don’t order something with a cream based sauce!) Or maybe pizza is a luxury good and they figure with the impending financial doom we are all facing we will substitute from pizza to pasta (I know I ate A LOT of pasta when I was student!)?
I’m not sure I’m entirely satisfied with either explanation (and that’s an understatement!), anyone have any thoughts?