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When It Comes To Pizza, Special Offers Trump Taste Every Time

LOS ANGELES, October 24, 2012 () – I live approximately one mile from both a Pizza Hut and a Papa John’s. And all things being equal, I like Papa John’s better. I find it to be very tasty. Good sauce, decent amount of cheese, not too oily, and a crust that’s soft but not too soft.

The prices are comparable for both pizza chains. Neither charge for delivery, and if I have the urge to get carryout, the drive is the same.

But every time I order pizza, I go to Pizza Hut. Why?

Simple: Meal deals.

Pizza Hut routinely trumps Papa John’s in special offers. The company consistently sends coupons to my house. It regularly features a $10 any-size, any-toppings offer and often that offer extends to delivery (which is highly convenient for large parties).

And as a result, every time I think about pizza, I think about Pizza Hut, even if it doesn’t have a promotion at the time. It has established brand loyalty with me even though there’s a Papa John’s right near me that I actually like better.

Recent numbers and surveys highlight this point. According to a survey by Market Force, Papa John’s is America’s second-favorite pizza chain, behind only CiCi’s Pizza. However, while Papa John’s reported net earnings of $14.8 million in its latest financial report, Yum! Brands—Pizza Hut’s parent company, which also owns Taco Bell and KFC—reported earnings of $331 million.

Quite a difference, no?

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