Sales slip at Pizza Hut, Domino’s, Papa John’s
Every major pizza chain in the United States has reported a drop in sales at all stores that have been open at least a year.
Along with Domino’s and Pizza Hut, Papa John’s sales fell over the last year. However, Papa John’s was able to raise profits anyway.
Domino’s takes a hit
Domino’s profit fell 32 percent in the fourth quarter of 2008. Same-store sales fell 3 percent, and the company predicts that number will stay flat throughout 2009.
This year Domino’s introduced sandwiches to try to make up for the loss in pizza sales. It has brought in more customers into stores, but it didn’t offset the lower pizza sales.
Pizza Hut posts a challenge
Chief Executive David Novak said Pizza Hut sales have fallen because dinner has been the hardest-hit meal. It’s more expensive to eat out at dinner time, so more consumers are staying home to eat in the evenings. Because pizza is mainly a dinner food, sales have declined.
Pizza Hut has also expanded offerings to try to offset lower sales. New items on the menu include lasagna and pasta. It has also amped up promotion of its chicken wings.
Papa John’s posts a victory
Papa John’s pizza sales fell just like everyone else’s, but the company still managed to make a profit.
Papa John’s was the only major pizza chain that opened more stores than it closed in 2008. A market analyst attribute’s Papa John’s success to stealing other pizza place’s customers by emphasizing quality.
With the incredible amount of people unemployed, it’s obvious more people would rather save $15 for something else other than a box of pizza. Everyone is affected by this current economic crisis and will do almost anything to remain above waters, even if it means passing up a cheesy slice of glory.
It would appear the recession has had a domino effect on all industries. Restaurant spending typically will take a dive during down times, but it is a smart move on the parts of Pizza Hut and Dominos to branch out into other foods besides pizza – that many more choices, and at competitive prices, equals that much more possible revenue.