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By: Xavier Hawkins 3/23/22
Pizza Hut, one of the most known pizza restaurants of all time. Always there to give out delicious food. But with 1 billion dollars in debt and market shares going down, The Hut has been getting Outpizza’d. But to understand why this is happening let's see and go back. The former pizza king Pizza Hut back in the day made weird but successful pizza designs, always coming up with a new one every month to even weeks.
Ones like The Bigfoot, The Hot Dog Crust Pizza, and The Cheese Burger Crust Pizza, helped make Pizza Hut more talked about with all of these being hits. But with this, some did become massive flops like The Sicilian Lasagna Pizza. But for the most part, these successful pizzas helped Pizza Hut stand out. And these pizzas helped the family bonds grow better and kept this place from just being another restaurant. Anthony, a 6th grader who has lived next to Pizza Hut all his life said “Pizza Hut was a nice place to dine in with my family.” Pizza Hut’s dine-in experience with its new stuff every time has made it grow and grow. But that same profitable experience turned out it could not be used forever. And with other people thinking employee choices and specific restaurant choices were the problem. The real problem was the delivery option being easier, more convenient, and the competing companies. Dominos was the really hard-hitting competitor with them really capitalizing with the option of delivery.
Especially when Pizza Hut didn’t even give the option to deliver to your front door. And we'll Pizza Hut did give the option soon after, the damage was already done. Especially because it took them years after starting the business to do so. August, another 6th grader said “My family used to eat at Pizza Hut all the time and then Dominos delivery option got us to stop.” The convenience of Domino’s delivery hurt Pizza Hut’s chances at staying at the top. Pizza used to be an exclusive dish but it soon became a regular fast food item. Pizza Hut became no different from other competitors except for the longest time they didn’t allow the delivery option. Then Pizza Hut’s prices went even higher but the pizza stayed exactly the same. Their model of dine in experiences was growing out of fashion. And people now think of the opposite of “We Deliver!” when they see the restaurant. With the pizzas they deliver, They aren’t trying the whole making wacky creative pizza designs again either. Even furthering them into being unique. Now everything on Pizza Hut’s menu is something you can get at Domino’s for way cheaper.
The same revenue garnered by Pizza Hut has stayed the same for years but I can’t say that about their market share. Because of other companies, their market share has declined to 25 percent to decrease to 14.3 percent. 2016 also marked the day Pizza Hut with a 40 YEAR LONG TITLE of BIGGEST PIZZA CHAIN EVER finally gets beaten by their arch-rival. Dominos, however Pizza Hut losing a title that is just 4 words is greater than just that. In 2019 - 2020 they have closed 900 underperforming stores.
Along with the closing of 900 hundred Pizza Hut stores, the franchisee of Pizza Hut filed for bankruptcy in early July. struggling with roughly 1 BILLION DOLLARS in debt. The US wasn’t also the ones losing stores of this business. The UK also had 10% more Pizza Hut stores closed right after 1 month from the bankruptcy file. The Pizza Hut chief brand officer, Marianne Radley. Had changed the Pizza Hut logo back to what it was from the glory days of this dying business. But I don’t think this sounds like a play made by a company thinking it will get big in the future.
Bye Pizza Hut, Guess You’ve Been OutPizza’d...
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