Pizza Hut's popularity declining in U.S

[Lou 500]

Source

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]

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

[BubblyShell22]

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

[Prowler]

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

[Zulithe]

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]

Weird, I eat Pizza Hut every Thursday.

[Guitar_Raph]

Originally Posted by BubblyShell22

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?]

Originally Posted by BubblyShell22

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

Same. I love their pepperoni Pizza.

[Wingnut]

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]

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

[CyberCubed]

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?

[KROW]

I live in Bizarro World, because my local Pizza Hut's buffet is crap where their actual pizzas are fantastic and the Domino's is a cesspit. Now, compared to the Taco Bell, Pizza Hut is a palace. At least the food matches the f***ing pictures on the menu, instead of having to pray to get good crap from TB. Also, there are dozens of local pizzerias that have insane prices for their food with one or two that charge fairly.

Another short stick? There is no Sonic or DQ where I live. I'd shoot off one of my toes for that.

[pandaderek]

I've, always, liked Pizza Hut as my main go-to, for pizza. Also, Domino's pizza makes you pay $1 for crushed red peppers!

But, I don't eat much pizza, unless, I'm feeding my coworkers or something. Living on the west coast and in Southern-California, I've eaten, mostly, Mexican and East-Asian foods. The California burrito and Beef Bulgogi FTW!

[Jephael]

I gotta admit, as much as I love Pizza Hut, Papa John's has really become my go-to over the last 10 years.

[Cure]

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

[Leo656]

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]

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]

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

[Cure]

I've got a ton of Popeyes around here. It's LA cuisine, not based.

[Netkeeper]

Sonic is great. They have a lot of interesting menu items that don't really appear anywhere else.

Though to be honest my favourite fast food joints are Del Taco and Wienerschnitzel. Several Taco Bells had problems with putting onions on my bean and cheese burritos when I would EXPLICITLY tell them "bean and cheese only, NO onions". It's like everybody that ever worked at a Taco Bell I went to had their heads up their asses. Del Taco never did that. And they have fantastic fries.