Goodby, Silverstein & Partners has lost Pizza Hut's $6-10 million kids account in the wake of a reorganization of the client's parent company, PepsiCo. That loss and other recent account shifts have forced the San Francisco agency to lay off about half of its
20- to 25-member design group.
Goodby's most recent work for Pizza Hut broke last January. Officials at Pizza Hut said the company continues to run ads aimed at children, but in a more limited way. That work is overseen by Pizza Hut's lead agency, BBDO in New York, sources said.
This summer, PepsiCo spun off its fast-food business, which includes Taco Bell and Kentucky Fried Chicken, as well as Pizza Hut. The newly formed, $10 billion independent company,
Tricom, is based in Louisville, Ky.
Goodby also lost the estimated $3 million assignment for D'Angelo sandwich shops, formerly a subsidiary of PepsiCo. The agency created three TV ads for the West Bridgewater, Mass.-based chain last year.
The agency, which employs more than 200 people, laid off about 10 design and promotions staffers this month. "The design group had been growing fast to contain a wide range of client needs, including in-store promotions for Pizza Hut," said Rich Silverstein, principal and co-creative director. "Now we want to keep the [unit] smaller and focus on high-end design work for clients such as Nike."
The shop's newest account, the $3 million Crystal Cruises business, which recently moved from Citron Haligman Bedecarre in San Francisco without a review, is also expected
to involve design work as well as print advertising.
The design group handled various projects for Goodby clients Pizza Hut, Norwegian Cruise Lines, Starbucks and Haggar. Earlier this year, the agency resigned Haggar due to conflicts with Nike. Norwegian and Starbucks split with the agency due to creative differences.
Silverstein said the downsized design group will be more closely integrated into the agency, including moving staff to the same floor as the creative department.