LSN : News : Pizza Hut turns to budget dining in China as economy slows

Tesco’s latest campaign celebrates the iconic meal deal

Meal Deal campaign by Tesco, UK

UK – Tesco is spotlighting its beloved meal deal with a fresh campaign celebrating an upgraded version of the popular lunchtime offering. Created by BBH London, the campaign taps into the cultural fandom surrounding the deal, which offers customers a main, snack and drink at a discounted price.

Inspired by the viral trend of rating meal deal choices on Instagram, the ad, Tesco Meal Deal – Your Best Combo, Made Better, depicts a range of people arguing the case for why their meal deal combinations are best. The ad then reveals that the Tesco meal deal is getting an upgrade.

With more than 10m possible combinations now available, the campaign highlights improved ingredients, such as longer-matured cheddar and juicier prawns, and introduces more than 20 new mains. It also promotes healthier options, including seven new salads.

In our Is Essentialism the Future of Branding? viewpoint, we explore how brands can harness essentialism to forge stronger consumer connections. Tesco’s Meal Deal campaign exemplifies this by focusing on its core offering, reinforcing what customers value most about the brand.

Strategic opportunity

Brands can tap into existing consumer rituals, such as Tesco’s meal deal culture, to build campaigns that reflect their authenticity and resonate deeply with loyal fanbases

CJ Hendry opens immersive plush flower market in New York

Cj Hendry’s Flower Market, US

US – Renowned contemporary artist CJ Hendry unveiled an immersive installation of 100,000 plush flowers at FDR Four Freedoms State Park on New York’s Roosevelt Island in September 2024.

Implemented in collaboration with luxury beauty brand Clé de Peau Beauté and Four Freedoms Park Conservancy, the large-scale Flower Market exhibition comprises a 120-feet by 40-feet greenhouse featuring 100,000 individually crafted plush flowers and 12 original drawings by the artist.

Visitors are encouraged to take home a plush flower as a keepsake, while those unable to visit in person can design their own personalised plush lily in a virtual flower market.

Henry found inspiration in the design philosophy of Louis Kahn, the architect behind Four Freedoms Park. She said in a statement: ‘When Kahn designed this memorial, he said: ‘The garden is somehow a personal kind of control of nature’.’ She described the exhibition as an extension of this concept where visitors can step out of their ordinary lives into an immersive and playful environment.

In our microtrend report on Flower Therapy, we analysed how brands can explore the benefits of flowers to encourage reconnection with nature and wellbeing.

Strategic opportunity

Consider how your brand can create opportunities for groups to experience green spaces and take part in nature-based activities as a branded wellness experience

Pizza Hut turns to budget dining in China as economy slows

Pizza Hut, US

China – In a bid to adapt to a sluggish economy in China, fast food giant Pizza Hut is turning to budget dining with new Pizza Hut Wow concept stores that offer smaller portions at lower prices.

The menu includes smaller pepperoni pizza servings for £3 (¥29, $4, €3.68), pasta dishes for £1.60 (¥15, $2.12, €1.90), and a steak for £3.74 (¥35, $4.94, €4.44) – all priced significantly lower than at traditional Pizza Hut restaurants. The first Wow concept store opened in Guangzhou in May and there are more than 100 outlets in China. The company plans to expand to 200 locations by the end of 2024.

The parent company Yum China is also implementing this strategy to attract cost-conscious diners with smaller formats for its other brands. It operates nearly 11,000 KFC outlets and more than 3,500 Pizza Hut branches. ‘China’s catering industry is very competitive right now, but we’re trying to be innovative,’ a Pizza Hut Wow spokesperson told Reuters. ‘This kind of store is more for individuals, like a small plate of tapas,’ added the spokesperson.

In our Cost of Living Crisis topic, we analyse how brands are adapting their business operations to cater for evolving consumer needs amid rising inflation.

Strategic opportunity

Consider how you can offer consumers better value-added services amid economic uncertainty

Stat: Gen Z and Millennials in the US feel most authentic in digital spaces

Dorothee Zang and her Roblox avatar, Roblox, US

US – A recent Consumer Trends Survey in the US reveals that Gen Z and Millennials continue to identify more with their digital personas than their offline selves. When asked, 45% of Gen Z and 47% of Millennials said they feel most like themselves online – compared to 42% and 40%, respectively, offline. This trend underlines the enduring influence of digital culture, even as society moves beyond the pandemic.

In contrast, older generations remain more grounded in physical spaces, with 65% of Boomers and 47% of Gen X saying they feel most like themselves offline. But digital engagement is rising among these groups too, with Boomers’ preference for online spaces growing from 10% in 2022 to 16% in 2023.

The data suggests a generational divide in how people relate to their environments, influenced by the digital-first experiences of younger consumers. As brands look to engage audiences, they must prioritise digital strategies while recognising the ongoing relevance of offline spaces, particularly for older demographics. This shift offers key insights into the future of consumer engagement across platforms, and we track such differences in our Generations coverage.

Strategic opportunity

As younger generations spend more time online, consider how you can create more diverse and inclusive representations on gaming platforms, for example, as revealed in Authentic Avatars