Pizza Hut Bets on Beer Delivery, But What Do Consumers Think?

by Mike Fishbein
February 4, 2019

Pizza Hut is a 60 year-old brand that operates 16,400 retail locations in more than 100 countries worldwide. But its scale hasn’t stifled innovation.

The company recently announced that it’s launching a new offering that will enable customers to get beer delivered along with their pizza. Beer and pizza certainly seems like a nice combination, and the timing seems perfect given that Super Bowl parties could be a good use case. However, all too often, big launches such as this one fall flat when met with real consumers. As a result, expectations are missed and resources are wasted.

We ran tests on Alpha to learn if consumers have a need for a beer delivery service and discover opportunities for Pizza Hut to improve its new offering. 350 U.S. beer drinkers 21 years-old and over answered fixed and open-ended questions about the concept. We learned that the concept has strong market potential, but that there are also several important factors that Pizza Hut will need to get right in order to meet the needs of the market.

Do consumers need their beer delivered?

We ran competitive overview tests to discover how consumers currently get beer delivered, what they like and dislike about these solutions, and what unmet needs they have.

Consumers who have ordered beer for delivery in the past most commonly rely on ordering beer the old fashioned way – from their local store. However, only 27% of respondents reported being “extremely satisfied” with their current solution and 12% said that they are “not at all satisfied.” They said that they love the convenience of getting beer delivered, but that it isn’t always available where they live. This indicates that there’s untapped consumer demand for beer delivery that current solutions aren’t meeting.

We also ran user discovery tests to learn what products, if any, users most want to have delivered alongside pizza, and what products, if any, users most want to have delivered alongside beer. Respectively, beer and pizza were the favorites by a long shot.

Do consumers want Pizza Hut’s new offering?

Users want the combination of beer and pizza – but will they use Pizza Hut’s new service? Our data indicates that the concept has strong potential. 72% of respondents indicated that they are interested or extremely interested in ordering beer with their meal from Pizza Hut.

We found that consumers aged 35-44 and with a household income over $100,000 were more interested than other segments. One user described how the new offering will save him time and make him more inclined to order from Pizza Hut:

“Beer and pizza are made for each other. I would be ordering more often if Pizza Hut delivered beer too! Saves me a trip to the market.”

Users frequently said that they would use this service during parties, on game nights, in situations where they run out of beer, and when they don’t want to leave the house. These insights indicate that launching in time for this year’s Super Bowl is a smart move. 

How can Pizza Hut make its offering even more appealing?

Based on the data that we’ve reviewed so far, it seems that Pizza Hut has found a major opportunity. However, we found that there are many important needs that will need to be addressed.

Respondents say that they’re most concerned about selection and price. “Depends on the quality of beer and the prices they charge”, one user said. Many users shared similar perspectives, so we ran another test to learn what selection of beers Pizza Hut should offer.

Respondents are most interested in ordering light and import beers. With these insights, Pizza Hut can improve their offering and the user experience of ordering beer.

These insights have uncovered additional opportunities for Pizza Hut to iterate on its beer delivery offering, but it’s clear that the concept has strong potential. Kudos to Pizza Hut for continuing to strive for innovation after all these years.

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Mike Fishbein

Mike is the Host and Producer of This is Product Management, Alpha’s podcast, and the Editor of Product Management Insider, Alpha’s Medium publication.