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-   -   Pizza Hut's popularity declining in U.S (http://forums.thetechnodrome.com/showthread.php?t=48720)

Lou 500 08-08-2014 06:16 AM

Pizza Hut's popularity declining in U.S
 
Source

Quote:

Pizza Hut, the country’s largest pizza chain, seems to be losing favor with American diners. The 56-year-old pizza restaurant’s same-store sales in the U.S. have fallen for seven consecutive quarters as competitors Domino’s (DPZ) and Papa John’s (PZZA) have seen sales increase.

“We’re obviously disappointed with second-quarter results and particularly with the very poor performance in our U.S. business,” David Novak, the chief executive of parent company Yum! Brands (YUM), said of Pizza Hut during an earnings call in July. “We’ve had our ebbs and flows vs. the competition over the years, and I can assure you we will be back,” Novak told investors.

Pizza Hut remains the largest pizza chain in the U.S. by far, with more than 7,800 restaurants—it continues to add more locations. But, says Darren Tristano, executive vice president at research firm Technomic, as quick-service competitors such as Papa John’s, Domino’s, and Little Caesars cut into Pizza Hut’s U.S. business, new fast-casual, made-to-order pizza concepts are also expected to steal market share.

Pizza Hut’s recent menu launches—such as Crazy Cheesy Crust pizza, three cheese stuffed crust pizza, and Blake Shelton-endorsed BBQ sauce pizza—have failed to improve results.

The chain is focused heavily on China, where it is developing Pizza Hut as a more upscale casual dining restaurant rather than as a delivery and takeout joint. It now has 1,134 sit-down locations in China—where sales are increasing—and just 215 delivery shops. In the U.S., only 14 percent of Pizza Hut’s business is dine-in.

Pizza Hut spokesman Doug Terfehr says China has not been a distraction. “Both our domestic and international businesses are incredibly important to the health of our brand,” he said in an e-mail. “As we’ve matured around the world, we’ve developed dedicated resources to handle that growth without wavering on our commitments to our business here.”

Terfehr cited recent efforts, such as a dessert partnership with Hershey that kicked off with an 8-inch cookie, the addition of equipment to all Pizza Hut restaurants to serve Wing Street chicken, and updating its website and app this spring as major turnaround efforts.

Bigger changes are on the way. Novak told investors that Pizza Hut will “launch a number of major initiatives in the United States to reignite sales beginning in the fourth quarter,” including plans to boost millennial-targeted advertising and digital marketing and a greater focus on value.

Netkeeper 08-08-2014 06:56 AM

Huh, interesting. Can't say I'm too surprised, though, since I've preferred Domino's for a long time.

BubblyShell22 08-08-2014 07:33 AM

I've always liked Pizza Hut and always will. Their buffet is awesome.

Prowler 08-08-2014 08:20 AM

I like Pizza Hut even though there are cheaper and healthier alternatives.

Zulithe 08-08-2014 08:43 AM

i have some amazing pizza places around me. buying pizza hut is a waste of money when you can get a GREAT pizza instead of a mediocre one for only 1.5x the cost, sometimes less.

i'm tired of these restaurants that cut every corner they can to lower the cost of their food resulting in not only poor nutrition but poor flavor.

the fastest growing restaurant segment in the US right now is "fast casual" which emphasizes QUALITY ingredients. High quality food at reasonable prices that's also fast. Places like Pizza Hut need to change with tastes of their (potential) clients.

Example? Taco Bell (also part of yum brands, I know) is launching an all new taco chain called U. S. Taco Co. because they realize there is no more growth in taco bell, they have to create better quality food because it's what people want.

http://www.foodbeast.com/2014/08/07/...t-u-s-taco-co/

Slade 08-08-2014 08:23 PM

Weird, I eat Pizza Hut every Thursday.

Discogod 08-09-2014 11:39 AM

I'd gladly swap our Pizza Hut for a Taco Bell (I think there's only 3 in the UK right now).

The only good thing about PH is the buffet. Back in my 20s, my housemate and I would go down there once a week. We'd get there at 12, stay 'til 3 and eat twice our own bodyweight in sh*tty pizza, pasta & salad...

oldmanwinters 08-09-2014 12:10 PM

I'm kinda shocked that Pizza Hut is the largest chain in the U.S. I would have thought Domino's or Papa John's would have had more locations since their locations tend to be smaller and focus on carry out/delivery compared to PH's are usually bigger spaces for sit down eating.

Metalwolf 08-09-2014 06:15 PM

For a long time it's been Dominoes in my town and the next one over. The only Pizza Hut in the area closed 6-7 years ago. And if not Dominoes, then it's Fox Pizza, Bravos, and two independent pizza shops.

Peanut 08-09-2014 06:48 PM

Pizza Hut is too expensive for what you get and it also makes me feel like absolute death after I eat it. If I get a thin crust from Dominos at least I don't feel like a human piece of sh*t afterwards and it's less than half the price.

Prowler 08-10-2014 05:24 AM

Quote:

Originally Posted by Peanut (Post 1327530)
Pizza Hut is too expensive for what you get and it also makes me feel like absolute death after I eat it. If I get a thin crust from Dominos at least I don't feel like a human piece of sh*t afterwards and it's less than half the price.

It kinda makes me nauseous sometimes as well. Pizza Hut's pizzas have too much fat in them.

Zulithe 08-10-2014 06:11 AM

mcdonalds is the same way... their sales are down for the first time in years because they can no longer keep their food cheap, yet the quality of the food is not improving.

mcdouble was $1 less than a year ago, now it's $1.29 or 1.39 everywhere. all sandwiches have seen a similar increase. Not just the beef either.

prices are always going up but at what point does it stop becoming the value food it was meant to be all this time and nobody wants to pay for it anymore?

Prowler 08-10-2014 06:16 AM

Quote:

Originally Posted by Zulithe (Post 1328066)
mcdonalds is the same way... their sales are down for the first time in years because they can no longer keep their food cheap, yet the quality of the food is not improving.

mcdouble was $1 less than a year ago, now it's $1.29 or 1.39 everywhere. all sandwiches have seen a similar increase. Not just the beef either.

prices are always going up but at what point does it stop becoming the value food it was meant to be all this time and nobody wants to pay for it anymore?

I rarely eat McDonald's. And by rarely I mean once every 2-3 years. Last time I had a big mac there it barely had any taste. I felt like I was eating plain bread with grease.

Some of my friends and classmates say Burger King is better and less fatty. I wouldn't know since I've never had it in my whole life.

Mayhem 08-10-2014 08:31 AM

I generally eat Burger King over McDonalds due to the taste and fries...

Back to the subject, if there's one thing worse than Pizza Hut, it's Domino's... we had it twice and never again here. We tend to eat Papa John's over Pizza Hut as it's far less greasy and tastes better. Pity there is such a price difference in the UK - you can get a medium pizza with two sides from PH for less than the cost of a large pizza at PJ.

Either way, come nowhere close at all to the best pizza I've had when in New York or Chicago...

Meat prices have generally been going up the last 2-3 years, and I expect that's had a pinch on many fast food places' bottom lines trying to provide cheap toppings and the meaty taste that most people want.

Whatswiththeheadbands? 08-10-2014 10:50 AM

Quote:

Originally Posted by Prowler (Post 1328068)
I rarely eat McDonald's. And by rarely I mean once every 2-3 years. Last time I had a big mac there it barely had any taste. I felt like I was eating plain bread with grease.

Some of my friends and classmates say Burger King is better and less fatty. I wouldn't know since I've never had it in my whole life.

I would agree with them. Burger King is much nicer than McDonalds

Prowler 08-10-2014 11:39 AM

Quote:

Originally Posted by Mayhem (Post 1328113)
I generally eat Burger King over McDonalds due to the taste and fries...

Back to the subject, if there's one thing worse than Pizza Hut, it's Domino's... we had it twice and never again here. We tend to eat Papa John's over Pizza Hut as it's far less greasy and tastes better. Pity there is such a price difference in the UK - you can get a medium pizza with two sides from PH for less than the cost of a large pizza at PJ.

Either way, come nowhere close at all to the best pizza I've had when in New York or Chicago...

Meat prices have generally been going up the last 2-3 years, and I expect that's had a pinch on many fast food places' bottom lines trying to provide cheap toppings and the meaty taste that most people want.

When I went to London in 2004, there was this pretty good pizza buffet very close to Piccadilly Circus. Don't remember its name but it was good and affordable.

pingclang 08-10-2014 11:52 AM

I don't know about other areas but I can definitely understand why it's declining here. Most folks around here usually refer to Pizza Hut as a place to relieve constipation. Any and everyone I know that's been there ends up spending the night in the bathroom.

Prowler 08-10-2014 12:00 PM

Quote:

Originally Posted by pingclang (Post 1328260)
I don't know about other areas but I can definitely understand why it's declining here. Most folks around here usually refer to Pizza Hut as a place to relieve constipation. Any and everyone I know that's been there ends up spending the night in the bathroom.

It sure makes you poop with ease, indeed.

Guitar_Raph 08-11-2014 03:07 PM

Quote:

Originally Posted by BubblyShell22 (Post 1325754)
I've always liked Pizza Hut and always will. Their buffet is awesome.

You're lucky. Most of the Pizza Huts in Dallas are delivery/carryout only. The only one left that has a dine in is located in southwest Dallas. It's worth taking the DART for.

Whatswiththeheadbands? 08-11-2014 03:15 PM

Quote:

Originally Posted by BubblyShell22 (Post 1325754)
I've always liked Pizza Hut and always will. Their buffet is awesome.

Same. I love their pepperoni Pizza.

Wingnut 08-11-2014 03:32 PM

I'm surprised Domino's hasn't usurped them yet, figured that'd be a lock. No one in my area has bought Pizza Hut with any regularity since they started offering pasta delivery/carry-out way back when. That seems to be the last "edge" they had on the competition....Then Domino's breadbowl pasta crapped on the parade.

Powder 08-11-2014 04:12 PM

It's the new TMNT promo causing people to lose their appetite. :tlol:

CyberCubed 08-11-2014 10:31 PM

I always figured these brands lose business to the individually owned pizza place take-outs, not that they were all competing against each other.

I mean you can just go to the pizza place down the block and get a pie, how often are you going to eat at a restaurant for pizza?

Slade 08-11-2014 10:33 PM

Quote:

Originally Posted by CyberCubed (Post 1330326)
I always figured these brands lose business to the individually owned pizza place take-outs, not that they were all competing against each other.

I mean you can just go to the pizza place down the block and get a pie, how often are you going to eat at a restaurant for pizza?

Not here you can't.

MsMarvelDuckie 08-11-2014 11:25 PM

They aren't losing any business HERE, that's for sure. Aside from a couple of local places and Cici's, it's the ONLY major pizza place in town, and the only chain with delivery in our area. They make bank in our town. The town my grandmother lives in doesn't have any other pizza places but Pizza Hut, either, so I'm guessing they make more money in small towns where they can be the only game in town. (Incidentally, I am all too familiar with the price-changing at Mc'D's, among other issues with that company- I just quit my job there to go work at my local Taco Bell instead. I got tired of the store getting jerked around by the new owners of our franchise.)

CyberCubed 08-12-2014 12:22 AM

Quote:

Originally Posted by Raph_tha_Dude (Post 1330331)
Not here you can't.

There are no regular privately owned pizza places in your neighborhood? Aside from the people who live in the sticks in the middle of nowhere, there is usually one of those everywhere, just like 7/11's and McDonalds.

Slade 08-12-2014 12:26 AM

Not everyone lives in a city. We also don't have 7/11's.

Leo656 08-12-2014 01:36 AM

Tell me you at least have a f***ing WaWa, bro.

I doubt it. Only the blessed get to have WaWa. :ohwell: Fortunately... there's a bunch of 'em over here.

I feel kinda spoiled now, the nearest Pizza Hut's about a half hour away, but we're in the outskirts of the suburbs and we still have about a dozen pizza places within five minutes of us. One is literally right across the street.

All this bounty... and I don't particularly care for pizza. Wish you were here, dawg.

Netkeeper 08-12-2014 02:34 AM

Quote:

Originally Posted by CyberCubed (Post 1330493)
There are no regular privately owned pizza places in your neighborhood? Aside from the people who live in the sticks in the middle of nowhere, there is usually one of those everywhere, just like 7/11's and McDonalds.

There's no McDonald's in my town. All we have is DQ, Subway, and Sonic.

Mayhem 08-12-2014 05:19 AM

At least you have a Sonic, that's some comfort. Where I usually visit in the US, don't tend to be there.

Slade 08-12-2014 08:17 AM

Quote:

Originally Posted by Leo656 (Post 1330547)
Tell me you at least have a f***ing WaWa, bro.

I doubt it. Only the blessed get to have WaWa. :ohwell: Fortunately... there's a bunch of 'em over here.

I feel kinda spoiled now, the nearest Pizza Hut's about a half hour away, but we're in the outskirts of the suburbs and we still have about a dozen pizza places within five minutes of us. One is literally right across the street.

All this bounty... and I don't particularly care for pizza. Wish you were here, dawg.

Ha, man I've never even heard of WaWa..

Netkeeper 08-12-2014 10:58 AM

Quote:

Originally Posted by Mayhem (Post 1330629)
At least you have a Sonic, that's some comfort. Where I usually visit in the US, don't tend to be there.

Both it and DQ are all over the place in the part of Texas I live in, so it's no real accomplishment! :lol:

Mayhem 08-12-2014 11:26 AM

Yeah, Sonic and DQ don't exist on the east coast! I've been to DQ when in Illinois though.

Netkeeper 08-12-2014 11:34 AM

Wow, that's really weird. Sonic always had a "New York" kind of feel to it, to me.

Cure 08-12-2014 11:36 AM

Quote:

Originally Posted by Mayhem (Post 1330800)
Yeah, Sonic and DQ don't exist on the east coast! I've been to DQ when in Illinois though.

Uh, yes they do. I'm in NJ 10 minutes from a Sonic and 20 from a Dairy Queen. Those aren't the only ones, either.

Leo656 08-12-2014 01:09 PM

Quote:

Originally Posted by Raph_tha_Dude (Post 1330705)
Ha, man I've never even heard of WaWa..

It's like a NJ 7-11 except the hot dogs won't give you the drizzling sh*ts.. Actually more an East Coast thing in general, but my friends in NY and Florida tell me there's more of them in NJ. I'unno how true that is. I'm two minutes from one, it's great.

And yeah, we got a couple Sonics and DQs. I think I"m the same distance as Cure from them, give or take. I live literally, like, dead center bullseye of NJ. Pretty sure I've been by those exact ones a few times. I only hit either of them once in my life, though, but I go by them all the time going to shows. They're alright.

How about Checkers? Anybody got a Checkers close by?

Cure 08-12-2014 01:28 PM

I have a few Checkers near me, too. You know you're in the hood when you see one. Like Newark.

Leo656 08-12-2014 01:30 PM

:lol: Heck yeah. The place I used to work had the furniture moving contract for the Newark school system, we used to pass by those but nobody ever wanted to stop and eat there. That's the driver's call and they'd usually wait until they hit a McDonald's.

BubblyShell22 08-12-2014 03:12 PM

Up here, it's called Rally's instead of Checkers. There used to be one in La Porte, IN, but I think that one closed down.

And the only reason I know about Wawa is from the Pretty Little Liars books where they'd mention it.

Wingnut 08-12-2014 03:59 PM

Kum n Go is the dominant convenient store around here. Yes, that's the real name. Use to be Git n Go way back when, before they were bought out.

I love how someone renamed the entire franchise "Kum n Go" either as a (not so) tongue-in-cheek joke, or they're the most oblivious person in the business world. There's really no middle ground :lol:


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