Tyr-Ziu Saxnot
02-22-2014, 06:21 PM
http://www.fool.com/investing/general/2014/02/22/pizza-hut-is-about-to-deal-with-a-public-relations.aspx Pizza Hut Is About To Face A PR Nightmare
By Dan Moskowitz |
February 22, 2014 |
Do you remember the Domino's Pizza (NYSE: DPZ ) incident back in 2009? You know, the one where the Domino's employee picked his nose and included what he found with his food preparation? There were some other disturbing aspects of this viral video, but no need to go into further details.
Domino's has since recovered, and all is well. In fact, over the past five years, Domino's has top-line and net-income growth of 26.09% and 113.6%, respectively. Over the past three years, the stock has appreciated 362%. Keep these numbers in mind when you read about the Pizza Hut incident below.
The recovery wasn't easy for Domino's. This recovery even included a television ad with Domino's admitting that its pizza stinks. In the end, the incident led to better pizza (relatively speaking) and more kitchen visibility for customers so they didn't have to worry about disgusting employee actions. Now it's Pizza Hut's turn.
Prepare to lose your appetite
Location: Kermit, W. Va. (Mingo County)
Offense: Urinating in a sink that's also used to clean utensils
Culprit: District Manager (name not provided)
Potential for public relations nightmare: Moderate to high
The video of the employee was aired on local television station WOWK-TV and is likely going viral as this is being written. Contrary to what Pizza Hut, or its parent company Yum! Brands (NYSE: YUM ) , states publicly, this incident is a problem.
With the popularity of online videos, you can't stop a video from going viral. People love sensationalism. Once they find a sensational video that will create conversation and feedback, they will spread it faster than a contagious disease. Hence the name "viral."
In this instance, we have a Pizza Hut employee urinating in the sink. If you like to look at negative situations with a glass-half-full attitude, then at least it took place after business hours. If you look at things from a face-value perspective, then it's likely to lead to negative press for Pizza Hut. If it's anything compared to what Domino's went through, it could be a significant event.
Yum! Brands now relies on the international market for the majority of its growth. However, this news is already international, and traffic and sales declines in the United States will still hurt the bottom line.
There's a good chance that many consumers will be turned off to Pizza Hut by this incident. If the video goes viral, which is likely, then that's a guarantee. This won't just lead to traffic and sales declines. It will also trigger increased costs for Pizza Hut related to marketing that promises quality to customers and the potential for redesigned locations with increased full-kitchen visibility for customers. I bet the guy was an illegal immigrant. They urinate and defecate wherever they please here just like they do back in home country they ran away from. Think about that next time you are at a restaurant eating and you see what are obviously non-English speaking illegals employed!! Then consider the sanitation habits of their home countries from which they fled. They bring that unsanitary culture and actions with them. One can not take that culture of unsanitary actions out in one generation here. Notice guilty guy was not named, bet it was Juan Taco Quadalupe. I also bet if the guy's name was Billy Bob Cornfield his name would have been given a dozen pictures of the guilty white guy presented(they even doctored pics of Zimmerman to use against him while using pics of the victim that were from many years before for effect). Such is the protective bias of our government controlled media and ally. However look on the bright side= extra salt free of charge.-- :laugh: --Tyr
By Dan Moskowitz |
February 22, 2014 |
Do you remember the Domino's Pizza (NYSE: DPZ ) incident back in 2009? You know, the one where the Domino's employee picked his nose and included what he found with his food preparation? There were some other disturbing aspects of this viral video, but no need to go into further details.
Domino's has since recovered, and all is well. In fact, over the past five years, Domino's has top-line and net-income growth of 26.09% and 113.6%, respectively. Over the past three years, the stock has appreciated 362%. Keep these numbers in mind when you read about the Pizza Hut incident below.
The recovery wasn't easy for Domino's. This recovery even included a television ad with Domino's admitting that its pizza stinks. In the end, the incident led to better pizza (relatively speaking) and more kitchen visibility for customers so they didn't have to worry about disgusting employee actions. Now it's Pizza Hut's turn.
Prepare to lose your appetite
Location: Kermit, W. Va. (Mingo County)
Offense: Urinating in a sink that's also used to clean utensils
Culprit: District Manager (name not provided)
Potential for public relations nightmare: Moderate to high
The video of the employee was aired on local television station WOWK-TV and is likely going viral as this is being written. Contrary to what Pizza Hut, or its parent company Yum! Brands (NYSE: YUM ) , states publicly, this incident is a problem.
With the popularity of online videos, you can't stop a video from going viral. People love sensationalism. Once they find a sensational video that will create conversation and feedback, they will spread it faster than a contagious disease. Hence the name "viral."
In this instance, we have a Pizza Hut employee urinating in the sink. If you like to look at negative situations with a glass-half-full attitude, then at least it took place after business hours. If you look at things from a face-value perspective, then it's likely to lead to negative press for Pizza Hut. If it's anything compared to what Domino's went through, it could be a significant event.
Yum! Brands now relies on the international market for the majority of its growth. However, this news is already international, and traffic and sales declines in the United States will still hurt the bottom line.
There's a good chance that many consumers will be turned off to Pizza Hut by this incident. If the video goes viral, which is likely, then that's a guarantee. This won't just lead to traffic and sales declines. It will also trigger increased costs for Pizza Hut related to marketing that promises quality to customers and the potential for redesigned locations with increased full-kitchen visibility for customers. I bet the guy was an illegal immigrant. They urinate and defecate wherever they please here just like they do back in home country they ran away from. Think about that next time you are at a restaurant eating and you see what are obviously non-English speaking illegals employed!! Then consider the sanitation habits of their home countries from which they fled. They bring that unsanitary culture and actions with them. One can not take that culture of unsanitary actions out in one generation here. Notice guilty guy was not named, bet it was Juan Taco Quadalupe. I also bet if the guy's name was Billy Bob Cornfield his name would have been given a dozen pictures of the guilty white guy presented(they even doctored pics of Zimmerman to use against him while using pics of the victim that were from many years before for effect). Such is the protective bias of our government controlled media and ally. However look on the bright side= extra salt free of charge.-- :laugh: --Tyr