Pizza Hut has been quietly testing a new coffee concept called Hut Cafe.
Parent company Yum Brands opened Hut Cafes inside two Pizza Huts in India and within the next couple months, plans to open 10 more, according to the Indian news site, the Business Standard.
The company is hoping the store-in-store coffee shop, which sounds very similar to McDonald’s McCafe, will increase sales between meals.
“During tough times one of the things we have done is to try and reach out to a whole new segment of customers,” Sanjiv Razdan, Pizza Hut India’s general manager, told the Times of India. “The Hut Cafe will help in getting customers who just go out for coffee and snacks between meals.”
The cafe sells coffee, tea, smoothies, coolers and desserts.
The launch of Hut Cafe comes six months after McDonald’s expanded McCafe into India. Starbucks entered the market in October 2012 and now operates 30 stores in the country.
The Indian cafe market, estimated to be roughly $US300 million is expected to double over the next five years, according to industry analyst Technopack.
We reached out to Pizza Hut and will update when we hear back.
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