Pizza Hut Resignation, Donatos Pullout Unsettle Sector

1 min read
Opinions expressed by Entrepreneur contributors are their own.

Des Moines, Iowa--It's been a downbeat week for America's pizza purveyors. First, McDonald's Corp. pulled its Donatos Pizza operation out of Atlanta, where it had 23 units, raising questions about the hamburger giant's interest in the sector. Then Yum Brands Inc. replaced the president of its Pizza Hut chain, the world's biggest player in what is clearly a slow-growth, slug-it-out business.

These events add evidence that the pizza business is grasping for customers, not only with hefty discounts and free beverages, but also with products that have little to do with pizza. Both Pizza Hut and Papa John's now are selling chicken items--wings at Pizza Hut and strips at Papa John's. Pizza parlor closures are up at several chains, including Pizza Hut, Papa John's and Domino's. Some of the shrinkage reflects growing competition from quick-casual restaurants offering novel tastes to supermarkets selling take-and-bake pies. -Dow Jones Business News

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • A 1-year Entrepreneur magazine subscription delivered directly to you
Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur