Pizza Hut Launches P'Zolo, With Eye on Subway

Pizza Hut is entering the sandwich arena and going after fast-food powerhouse Subway with the launch of a new offering this week, the P'Zolo. The $3 P'Zolo premieres in three flavors—Italian Steak, Buffalo Chicken, and Meat Trio—and "looks like a cross between a sub, a roll and a Costco-style chicken bake," writes Tiffany Hsu at the Los Angeles Times.

In the eyes of Pizza Hut, of course, it's nothing short of revolutionary. “It's a new flavor creation that is leaving the sub category behind," says a marketing official. The retailer's not-too-subtle ad campaign for the P'Zolo is dubbed the "Subway Takeover" and includes the redecorating of two Chicago subway trains into massive P'Zolos. Big money's at stake: Subway is currently the No. 2 US restaurant chain in sales, behind McDonald's. (More P'Zolo stories.)