I Visited Pizza Hut and Noticed Why the Basic Chain Is Struggling

Pizza Hut, considered one of America’s most recognizable pizza chains, is going through an id disaster.

Yum! Manufacturers, Pizza Hut’s mum or dad firm, first introduced late final yr that it was exploring a possible sale of the red-roofed icon. The announcement got here as the corporate reported that Pizza Hut’s same-store gross sales fell 1% throughout the third quarter, marking the eighth consecutive quarter of declines.

Throughout Wednesday’s fourth-quarter earnings report, Yum! introduced that Pizza Hut’s gross sales had continued to say no and that it could completely shut 250 “underperforming” places nationwide within the first half of the yr.

I visited two Southern California places to see why Pizza Hut is falling behind and located a restaurant caught between its nostalgic previous and an unsure future. Though Pizza Hut’s meals continues to be strong, it seems to be struggling to show its worth to customers in at present’s crowded eating scene.

“The Pizza Hut workforce has been working onerous to deal with enterprise and class challenges; nevertheless, Pizza Hut’s efficiency signifies the necessity to take extra motion to assist the model notice its full worth, which can be higher executed exterior Yum! Manufacturers,” Chris Turner, chief government of Yum! Manufacturers, mentioned in a November assertion.

He mentioned on the corporate’s earnings name that day that it is reviewing strategic choices, which may embrace a sale of the Pizza Hut enterprise. Yum! Manufacturers has retained Goldman Sachs and Barclays as monetary advisors to evaluate potential offers.

A consultant for Yum! Manufacturers declined to remark past the corporate’s public statements.

Based in 1958, Pizza Hut rose to prominence with its sit-down type household eating places, which featured its once-famous salad bar. Nonetheless, it started scaling again its large-scale codecs within the early 2000s and now primarily operates take-out-only shops.

Getting into the primary location, about 60 miles northwest of Los Angeles, I used to be greeted by the acquainted scent of baking crust and melty cheese — however no menu board in sight. As a substitute, a small cardboard pop-up close to the register displayed a number of adverts for meal deal specials and a QR code I may scan to see the total menu.

The omission of a full menu show instructed the corporate has turn out to be extra depending on deliveries and on-line orders than in-person visits to the counter.

I opted for a private pepperoni pizza, as soon as a staple of my childhood, because of Pizza Hut’s “E-book It!” program. To at the present time, this system gives school-aged children free pizza once they submit proof that they’ve reached their month-to-month studying objectives. As an grownup with no accomplished studying log, nevertheless, the four-slice miniature pizza price $9.70.

The pizza was precisely as anticipated: crispy on the underside, with a touch of candy marinara sauce, melted mozzarella, and two pepperonis per slice, however I used to be struck by the value level for such a small meal.

Pizza costs have elevated by greater than 15% during the last 5 years, whereas extra operators are providing pizzas and flatbreads on their menus, Restaurant Enterprise On-line reported in October, citing Technomic knowledge. As soon as thought of a worth possibility, 35% of customers now order pizza much less often attributable to larger costs, the outlet reported.

Meaning stiffer competitors for Pizza Hut, which has to compete with extra chains, from Domino’s to Little Caesars, for fewer potential clients.

Enterprise Insider reported in August that, as customers tighten their belts and eat out much less, they’re turning into more and more loyal to their favourite manufacturers and in search of coupon offers once they do dine out.

On the second location, I seen a outstanding advert for a value-focused providing: Pizza Hut’s new “Flatzz” menu objects. These thin-crust flatbreads are priced at simply $5.46 after tax once they’re ordered earlier than 5 p.m.

The “Flatzz” pizza gave the impression to be a greater deal. It supplied eight slices of pizza with extra taste than the non-public pizza on the first retailer. The flatbread possibility was a superb worth, and I would not have identified it existed had it not been for the signal close to the door.

Each eating places had been clear, the workers inside had been pleasant, and Pizza Hut nonetheless has the substances that made it a family title — the gooey cheese, acquainted emblem, and comforting nostalgia.

Nonetheless, within the present eating panorama, acquainted pizza is not sufficient to ensure a seat on the desk. Pizza Hut’s subsequent problem is to persuade clients that it nonetheless gives worth in a market the place “quick” and “low cost” have turn out to be the default substances for fulfillment.

Replace, February 4, 2026 — This story, initially revealed in November 2025, was up to date after the announcement that Pizza Hut would completely shut 250 “underperforming” places within the first half of 2026.