Corporate Stories: Yum Brands announced last week that it would explore strategic options for Pizza Hut. The company’s CEO Chris Turner said that given the brand’s challenges, additional steps are necessary to reach its full potential, which may perhaps be better done outside of Yum. There is no set timeline for the review process, but options could include sale of the company, partnership or selling a stake.
Let us tell you that Pizza Hut along with KFC and Taco Bell has been a part of Yum for a long time. Pizza Hut was started in 1958. Those who have tasted Pizza Hut usually say that its pizza is better than Domino’s pizza. Domino’s was started 2 years after Pizza Hut i.e. in 1960. But what happened that now the time has come to sell Pizza Hut, while Domino’s is dominant all over the world? What are the reasons behind Pizza Hut lagging behind Domino’s, let us know…
Pizza Hut’s share decreased
In 2019, Pizza Hut’s share in America’s pizza market declined from 22.6 percent to 18.7 percent. According to QSR Magazine, Technomic and Statista, the total value of the US pizza market in 2024 was approximately $50 billion. Domino’s tops the American pizza market. It occupies about 36% share of the market. In the table given below, you can see how year-wise the share of Pizza Hut has been falling in the American market. In 2010, when the American pizza market was worth $32 billion, Pizza Hut’s share was 16.9 percent. But when the total market increased to $ 50 billion in 2024, Pizza Hut’s market share was reduced to only 11 percent.
| Year | US sales ($ billion) | Total Market Size ($Billion) | Pizza Hut’s share (%) |
| 2010 | 5.4 | 32 | 16.9 |
| 2012 | 5.4 | 35 | 15.4 |
| 2015 | 5.4 | 38 | 14.2 |
| 2018 | 5.5 | 42 | 13.1 |
| 2020 | 5.38 | 45 | 11.9 |
| 2021 | 5.4 | 46 | 11.7 |
| 2022 | 5.27 | 47 | 11.2 |
| 2023 | 5.6 | 49 | 11.4 |
| 2024 | 5.5 | 50 | 11 |
1. Focus on dine-in model
Pizza Hut’s focus remained on traditional restaurants (dine-in), which are expensive to operate. After the Corona pandemic, consumers prefer delivery and pickup, where Domino’s is strong. Due to this, Pizza Hut restaurants are closing.
2. Continuous decline in sales
Same-store sales in the US declined -6% through Q3 2025 (decline from 7 quarters), while Domino’s grew +5.2%. The effect of cell decline was seen all over the world. More than 300 stores had to be closed in Türkiye in January 2025.
3. Reduction in quality and variety
Customers generally complain that Pizza Hut’s dough, taste, variety and delivery speed have deteriorated. Recipe changes created a “too big to fail” mentality that deviated from core values.
4. Lagging behind in technology and innovation
Domino’s invested in digital apps, tracking and innovative rewards like Emergency Pizza, which increase customer loyalty. Pizza Hut’s value messaging (like the Adultzz Only campaign) failed.
What is the status of both the companies in India?
Both Pizza Hut and Domino’s are major chains in India, but Domino’s dominates the market. India’s pizza market is expected to be worth around Rs 45,000 crore in 2025, in which Domino’s has more than 60 per cent share. Pizza Hut is another big player, but its growth is slow and there are challenges.
Number of Stores: Domino’s has 2,321 stores (as of 2025). Recently 81 new stores have been opened. Pizza Hut has only 630-637 stores. And he added 63 new ones. Meaning, Domino’s has reached more places, due to which more people are able to buy it easily.
Annual Earnings: Domino’s revenue is between Rs 8,000-10,000 crore, and it grew 18.8% from last year. Pizza Hut’s income is Rs 1,500-2,000 crore, which is growing at a slow pace. That means Domino’s is earning 4-5 times more.
Same-Store Sales Growth: Sales in Domino’s old stores increased by 9.1 percent, especially with a huge jump of 20.1 percent in delivery. There has been only 5% increase in the old Pizza Hut shops. Domino’s is being liked more by the customers because of providing home delivery.
Market Share: Domino’s has 60% share, which means most of the pizza buyers in India go to it. Pizza Hut has 20-25%, which is second but much less. Domino’s is ruling the market.
Operator Company: Domino’s is run by Jubilant Foodworks (JFL), which is expanding rapidly. Pizza Hut is managed by Sapphire Foods (SFI), which also runs brands like KFC, but there seems to be less focus on Pizza Hut.
