Good start to pizza and beer concept

By Phil Boeyen, ShareChat Business News Editor

Monday 11th September 2000

Pizza Hut's bid to expand its delivery market to beer and wine has begun slowly but steadily.

The fast-food company has been trialling the "pizza and beer" concept for three weeks in Auckland with little advertising support.

Restaurant Brands' CEO Jim Collier says already around 7% of people who call up for pizza are adding beer and wine to their orders, a figure he says the company is happy with given the concept is still new.

He says part of the reason for the trial period is to make sure the systems which govern the alcohol deliveries are working properly, such as ensuring that those ordering the pizza and beer combinations are of legal drinking age.

Prices for the alcoholic add-ons slighly higher than supermarkets, and Mr Collier says to date 70% of alcohol sales are for beer and the rest for wine. He says premium products are being favoured over lower priced brands.

The trial will run for two more months in Auckland before being rolled out to the rest of the country, although nationwide coverage could take some time because the company needs to apply for liquor licences in individual delivery areas.

Restaurant Brands is introducing the deliveries to try to give it an edge in the competitive pizza market. It also wants to make more use of its improved distribution ability following the purchase of the Eagle Boys pizza chain, which are being converted to the Pizza Hut brand.

The company now has a pizza store within eight minutes drive of 90% of the New Zealand population.

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