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.

[Discogod]

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]

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]

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]

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]

Originally Posted by Peanut

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]

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]

Originally Posted by Zulithe

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]

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?]

Originally Posted by Prowler

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]

Originally Posted by Mayhem

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]

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]

Originally Posted by pingclang

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]

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.