>> This isn't your neighborhood Pizza Hut. It's set up shop in an upscale Shanghai mall and decked out with brass lamps and Italian marble. On the menu, Australian steak, all part of a high-end makeover to rescue a brand that's taken some knocks in China. Parent company YumChina is the biggest fast food operator here, with more than 2200 Pizza Hut outlets across the country.
But over the past year, competition has been growing, and sales are falling. Reuters Adam Jourdan explains what's gone wrong.>> Now, the issue for Pizza Hut is partly to do with where it sits here in the China market. Unlike perhaps in Europe or the Americas, in China it's mean to be seen, or historically has been seen as more of a premium brand.
They've brought out some products to try to give themselves a glitzier side which haven't always worked, things like they have escargot snails on the menu. They had a pizza with a very expensive shellfish, abalone, as a topping. And some of these products haven't really worked for them here.
>> The solution? Keep pushing the premium image but aim for a younger crowd. Pizza Hut says it spent around $60 million over the last year on a massive upgrade, streamlining the menu and going high tech, letting customers order by scanning QR codes at their tables. It's also adding some pop culture cache, a tie up with American fashion designer Anna Sui.
>> What's happened here is that they brought her in to help design the Pizza Hut uniforms for their staff, using her traditional colors of black, white and electric purple which is something she's known for in her designs. And again the idea here is to add a bit more gloss to the Pizza Hut brand and take them out of market.
>> This isn't YumChina's first salvage job. A series of food safety scares beginning in 2012 hit sales at another of his brands, KFC. But the company was able to turn things around with a big nationwide overhaul, a success story that Pizza Hut is hoping to repeat.