As Gas Prices Rise, Pizza Hut Franchisee Expects More Carryouts

May 4, 2011 by Cris | 0 Comments

Pizza Marketing Quarterly (PMQ):

According to Nation’s Restaurant News, “As gasoline prices continue to rise, Pizza Hut’s largest franchisee said its delivery-oriented restaurants expect to see more consumers picking up their orders.”

“That shift from delivery to carryout could help NPC International Inc., which operates 1,135 stores Pizza Huts, save on the reimbursements for delivery drivers, which are adjusted monthly as gas prices rise, the Overland Park, Kan.-based company said Friday. ‘Our history tells us that traditionally when gas prices get high, our consumers want to slide into carryout mode,’ Troy D. Cook, NPC’s executive vice president and chief financial officer, said during a conference call to discuss first quarter results.”

“’There’s a natural kind of hedge in our business against higher gas prices,’ he said, ‘because the consumer says, ‘I don’t want to pay the tip to the driver, because I’m feeling squeezed on disposable income due to the higher gas prices, and I don’t want to play a delivery charge. So I’ll drive into that carryout access mode.’”

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