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Author Topic: Pizza Hut's New Pizzas Not Doing So Well  (Read 8799 times)

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Online Pete-zza

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Re: Pizza Hut's New Pizzas Not Doing So Well
« Reply #60 on: August 12, 2017, 02:28:27 PM »
Tom,

It is not only PH that is struggling trying to find the right formula that will appeal to the younger generation, but Applebee's and IHOP are also struggling with the same problem that is forcing them to close a lot of their stores:

http://www.businessinsider.com/applebees-is-closing-up-to-135-locations-2017-8

It also isn't helping that many sit-down restaurants are located near malls that are now in a heap of trouble because of the Amazon threat that is dooming Class B and Class C malls to severe downturns. They are the bulk of malls. The biggest and closest mall to where I live just outside of Dallas has both an Applebee's and an IHOP right next door. And there is a Sears in the same mall that is dying.

Peter

Offline The Dough Doctor

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Re: Pizza Hut's New Pizzas Not Doing So Well
« Reply #61 on: August 12, 2017, 04:34:14 PM »
Peter;
Absolutely! The entire face of retail sales is rapidly changing and taking all of the peripheral businesses with it. Here in Manhattan, KS we are seeing all of the restaurants grouping together in what is fondly referred to as "restaurant row" which is apart from the "mall" and other major retail establishments, or at least far enough to be a destination stop as opposed to a place to eat when at the mall. I believe this might be a similar concept to the "restaurant row" in Dallas, but on a much smaller scale. Sad to say that the "brick and mortar" appears to be crumbling. Our state has been trying to charge tax on all internet sales but haven't yet figured out how to do it I guess. Retail merchants are 100% in favor of the idea as it will help to level the playing field. Right now we can buy off of the internet and unless the company has an office in KS we do not charge any state tax on the purchase so it amounts to an automatic 7% discount right up front and in many cases there is free or low cost shipping on top of that which further erodes the local retail sales, not to even mention the lower item cost too. It has become so bad here that I just bought new tires for two of our vehicles, the dealer agreed to sell me the tires at the same price that I was quoted at Tirerack.com plus shipping (about $20.00 per tire cheaper than their first quotation for the same tires) they then charged $10.00 each for dismounting and mounting + balancing the new tires which is a standard fee. Worked out good for us, but not especially well for them. By the way, we did not have to pay state tax on the tires either. Businesses are doing what they have to in order to survive but like Sears, nothing they do will be enough, things are a changin'.
Tom Lehmann/The Dough Doctor

Online Pete-zza

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Re: Pizza Hut's New Pizzas Not Doing So Well
« Reply #62 on: August 12, 2017, 05:01:00 PM »
Tom,

This article by a Seattle-area money management firm pretty much says it all:

https://gallery.mailchimp.com/7372687636bfa669f0a51ec26/files/c2bff5e1-9aa3-44f2-920c-38e13d0aaf66/EVA_8.11.17.01.pdf.

Restaurants, including places that sell pizza, are not immune from the above analysis to the extent they are in or near malls, although some malls are soliciting restaurants as destination restaurants that people seek out. And entertainment becomes a material part of such malls.

Peter

Offline The Dough Doctor

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Re: Pizza Hut's New Pizzas Not Doing So Well
« Reply #63 on: August 12, 2017, 10:47:15 PM »
Peter;
You mention entertainment, our Sears store location in the mall is now an Omni Max theater. Pretty bad when the mall's anchor is a theater.
What I find very interesting, at least here in rural KS is that the old, town squares and main streets are coming back. Our main street (Poyntz Ave.) is ALIVE with new stores and A LOT of new restaurants where as a few years ago it was empty, now there is empty space in the mall....sure hope they find something to do with it. Here the destination restaurants won't go near the mall. Old Chicago restaurant left the mall a year ago and opened at a new location on the exact opposite side of town, about as far from the mall as you can get (about 4-miles away).
Tom Lehmann/The Dough Doctor

Offline HarryHaller73

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Re: Pizza Hut's New Pizzas Not Doing So Well
« Reply #64 on: August 13, 2017, 10:26:23 AM »
It looks like Pizza Hut's venture into new pizzas is not doing so well;

http://www.bakingbusiness.com/articles/news_home/Financial-Performance/2015/04/Pizza_Hut_dishing_disappointme.aspx?ID={4E15C742-3CB2-4DB2-A0D0-8524035BEE84}

Peter

Chain pizza has been in a boom period past 6 years, Pizza Hut is simply the laggard.  Where Dominos has concentrated on it's core offerings and just improving flavor with better ingredients beginning some 10 years ago when they revamped their entire pizza formulation, Pizza Hut has done really nothing to change it's product but adding new toppings and expanding menu with reconstructed products off existing ingredients and "crust flavors".   It all comes off as superficial gimmickry, the market speaks for itself and the consumer simply don't like the off tasting dough, sauce and that weird rubber they call mozzarella cheese as much.  I would classify Pizza Hut as a Gen X style of fast food in their flavors and marketing along with the other restaurants under YUM brands like Taco Bell, they've failed to give into the demands of the younger generations.   it's not that Pizza Hut is struggling to identify a place for themselves in this market, they simply aren't trying.  In the burger genre, Mcdonalds has succeeded past 2 years with new management, stock is up a whopping 60% in that time, while gaining market share in the Millennial demographic by continually communicating formulation changes, dropping their burgers from 20 items down to 6 core items, more wholesome special offerings that this generation prefers,  dropping artificial colors, preservatives and flavors in their McNuggets and ice cream, eliminating drinks like Hi-C, planning for cage free eggs, and marketing within that strategy proving the old dog can learn new tricks.

« Last Edit: August 13, 2017, 11:15:55 AM by HarryHaller73 »

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