Pizza Hut spotted selling 99 cent condiment shakers of red pepper flakes and grated cheese in California.
Mark Kalinowski, a restaurant analyst, who publishes the Kalinowski Equity Research report said the current “wage inflation in California is putting a big pinch on restaurant-level profits and cash flow.”
So that’s probably why some operators are looking for other streams of revenue.
Kalinowski was also the one who spotted the test. He walks into a Pizza Hut restaurant and sees they’re selling grated cheese shakers at 99 cents each.
The analyst shared photos of Pizza Hut’s new condiment shakers with Nation’s Restaurant News after first publishing a report earlier this week.
The company confirmed the news to NRN by saying:
“As the marketplace continues to evolve, select Pizza Hut restaurants in Southern California have tested selling crushed red pepper and grated cheese for 99 cents.”
Pizza Hut also said “this is not an initiative being widely implemented, as they’re in the early stages of capturing consumer response.”
Pizza Hut’s new condiment shakers contain 0.88 ounces of grated cheese and 0.61 ounces of red pepper flakes.
This sales boosting strategy could scare consumers and drive down sales.