It is no secret that consumers nationwide are pulling back their spending on fast food for several reasons, such as to save money due to concerns about inflation and tariffs. Also, more consumers are pivoting towards healthier foods, a trend that blossomed after the Covid pandemic.
Fast-food prices have also increased by roughly 47% over the past decade, which has scared away many consumers struggling to afford a higher cost of living.
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A survey from LendingTree last year found that 78% of Americans view fast food as a luxury, since it has become less affordable. Also, 62% of Americans said they’re eating less fast food due to rising prices, and 56% said they choose to make food at home when they want an easy and cheap meal.
Related: Pizza Hut struggles to reverse troubling consumer trend
Amid this consumer trend, Pizza Hut, which is owned by Yum Brands (YUM) , saw its system sales in the U.S. decrease by 7% year-over-year during the quarter, and its operating profit dipped by a whopping 20%.
During an earnings call in April, Yum Brands CEO David Gibbs said Pizza Hut’s sales performance in the U.S. was “disappointing” and flagged that the pizza chain was operating in an “intense competitive environment.”
“Pizza Hut is in a tough category right now in QSR (quick-service restaurants) in the U.S., and certainly the pizza category with everybody reporting negative sales is pressured,” said Gibbs during the call. “But we’ve obviously seen Pizza Hut have significant growth in years past when they get the offerings right for consumers, like with melts and value.”
Pizza Hut makes a major menu change
To help attract customers back into its stores, Pizza Hut is shaking up its menu with four new limited-edition items at discounted prices.
The pizza chain has launched Hut Lover’s Pizzas, which include a new Spicy Hawaiian Lover’s pizza that contains “spicy marinara sauce, ham, bacon, pineapple, jalapeño, and red chili flakes,” according to a new press release.
Related: Domino’s Pizza suffers a startling loss as customers switch gears
It also introduced a Meat Lover’s pizza, which is topped with “pepperoni, Italian sausage, ham, bacon, seasoned pork, and beef.”
Pizza Hut’s new Pepperoni Lover’s pizza just contains extra cheese and pepperoni, while its new Veggie Lover’s pizza is loaded with “mushrooms, onions, green peppers, diced tomatoes, and black olives.”
A large size of one of these pizzas costs $12.99. This is a deal, because a large pizza at Pizza Hut usually costs a little under $20, depending on the region.
Pizza Hut ramps up efforts to fix weak sales
The new announcement from Pizza Hut comes after it recently made several bold attempts this year to win back customers.
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In February, it introduced its Ultimate Hut Bundle. This deal allows customers to order two medium pizzas, any eight boneless wings, sticks, and two dipping sauces, starting at $24.99.
The following month, Pizza Hut brought back Cheesy Bites Pizza, a fan-favorite menu item, for a limited time. It also introduced three new exclusive dipping sauces: Chipotle Ranch, Ultimate Ranch, and Pepperoni Ranch.
During the earnings call in April, Gibbs said that Pizza Hut will focus on its “3D strategy” to boost its sales going forward. This strategy includes “distinctive offerings for group occasions, dependable everyday value through platforms such as the $7 deal levers, and disruptive innovation to gain share in a competitive market.”
Related: McDonald’s to suffer massive boycott from customers
