{"id":44950,"date":"2025-11-05T11:34:57","date_gmt":"2025-11-05T11:34:57","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/05\/from-pizza-hut-to-papa-johns-inside-the-struggles-of-the-us-restaurant-industry\/"},"modified":"2025-11-05T11:34:57","modified_gmt":"2025-11-05T11:34:57","slug":"from-pizza-hut-to-papa-johns-inside-the-struggles-of-the-us-restaurant-industry","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/11\/05\/from-pizza-hut-to-papa-johns-inside-the-struggles-of-the-us-restaurant-industry\/","title":{"rendered":"From Pizza Hut to Papa John\u2019s: inside the struggles of the US restaurant industry"},"content":{"rendered":"
<\/div>\n

Yum Brands says it is exploring strategic options for Pizza Hut<\/a>, a review that could include a potential sale as the iconic pizza chain struggles to regain momentum in an increasingly competitive market.<\/p>\n

Papa John\u2019s, which had been in talks with Apollo Global for a potential $2.1 billion take-private deal, now faces uncertainty after the private equity firm reportedly withdrew its offer as consumers tighten spending and the quick-service restaurant industry shows growing signs of fatigue.<\/p>\n

Denny\u2019s \u2014 the 72-year-old diner chain \u2014 announced on Monday that it had agreed to be acquired by TriArtisan Capital Advisors, owner of P.F. Chang\u2019s, and Yadav Enterprises, one of Denny\u2019s largest franchisees, in a $322 million deal.<\/p>\n

Last month, Chipotle Mexican Grill cut its annual sales forecast for the third time this year,<\/a> warning that consumer spending on dining out is likely to remain under pressure through early 2026. <\/p>\n

Wendy\u2019s, meanwhile, is expected to report a 5.6% drop in sales when it announces earnings on Friday, with profits projected to fall from 25 cents to 20 cents per share.<\/p>\n

A wave of bankruptcies swept through the restaurant sector last year, with Red Lobster, TGI Friday\u2019s, Buca di Beppo, and Rubio\u2019s Coastal Grill all seeking bankruptcy protection as they struggled to compete with fast-casual brands and delivery platforms better aligned with modern dining habits.<\/p>\n

Between January and March, Americans consumed one billion fewer restaurant meals than during the same period last year, according to market research firm Circana \u2014 a stark reflection of how economic headwinds are reshaping the nation\u2019s dining habits.<\/p>\n

Inflation, rising costs pinch restaurant owners and patrons alike <\/h2>\n

Inflation, rising labour costs, and the enduring shift toward takeout and home cooking have eroded profitability across the sector.<\/p>\n

\u201cA whole lot of these companies are finding their sales aren\u2019t turning out to be as strong as expected,\u201d says Jim Sanderson, a restaurant industry analyst for Northcoast Research, in a Time magazine article<\/a>.<\/p>\n

Labour costs, he added, are eating into margins that were already thin.<\/p>\n

Restaurants that once spent 30 to 35% of sales on labour now spend 40 to 45%, said Dave Foss of Maverick Theory in the article. <\/p>\n

Chief Executive of Chipotle Scott Boatwright told analysts last week that even higher-income diners were showing signs of restraint. <\/p>\n

\u201cWe\u2019re losing them to grocery and food at home,\u201d Boatwright said on a Wednesday conference call. <\/p>\n

\u201cThey feel the pinch, and we feel the pullback from them.\u201d<\/p>\n

How the pandemic brought about a shift in Americans’ eating habits <\/h2>\n

The pandemic accelerated a long-term shift toward delivery and takeout. <\/p>\n

“Since 2020, there\u2019s been a fundamental shift in restaurant patrons\u2019 preference for takeout and delivery over in-store dining,” said Dinesh Puranam, an assistant professor of marketing at the University of Southern California, in a Guardian article<\/a>.<\/p>\n

\u201cThe pandemic triggered that shift quite rapidly, but the shift seems to be here to stay.\u201d<\/p>\n

Victor Fernandez of Black Box Intelligence, which monitors performance across US restaurant chains, said that although customers were initially eager to return to dine-in experiences after the pandemic, the steadily rising cost of eating out has begun to weigh on both restaurants and consumers. <\/p>\n

“Over the past decade, restaurant prices have climbed 48%, while grocery prices are up just 28% \u2014 and that gap is becoming increasingly evident,\u201d Fernandez noted.<\/p>\n

McDonald\u2019s and Chili\u2019s lead the recovery efforts, and Domino’s shows resilience<\/h2>\n

While many chains struggle, a few giants are showing resilience. <\/p>\n

McDonald\u2019s is expected to report third-quarter earnings of $3.33 per share on $7.08 billion in sales, reflecting both year-over-year growth and strong pricing initiatives. <\/p>\n

The fast-food leader has recently pivoted to affordability, cutting prices on eight popular combo meals by about 15% and rolling out a $5 Meal Deal and Buy One Get One for $1 promotion.<\/p>\n

McDonald\u2019s has also expanded late-night hours and added new beverages such as flavoured sodas and coffee-based drinks to appeal to younger customers. <\/p>\n

Analysts say these efforts could help it regain market share lost to fast-casual rivals.<\/p>\n

Chili\u2019s, too, has notched a comeback.<\/p>\n

Parent company Brinker International reported that same-store sales rose 21.4% in the first fiscal quarter of 2026, driven by a 13.1% increase in traffic. <\/p>\n

The chain\u2019s transformation, under CEO Kevin Hochman, has centred on operational streamlining and kitchen upgrades.<\/p>\n

Menu improvements have paid off. <\/p>\n

Chili\u2019s upgraded ribs boosted sales by 35%, while Frozen Patr\u00f3n Margaritas doubled their prior sales volumes despite higher prices.<\/p>\n

The company\u2019s focus on operational execution and menu simplification has driven profitability and customer satisfaction.<\/p>\n

On the other hand, Restaurant Brands International, parent of Burger King and Tim Hortons, posted a 7% rise in quarterly revenue to $2.45 billion, beating expectations.<\/p>\n

Strong international performance and a recovery at Tim Hortons helped offset weakness in North America.<\/p>\n

Further, Domino\u2019s Pizza also posted strong results, driven by promotions and menu innovation.<\/p>\n

Its \u201cBest Deal Ever\u201d campaign and the launch of new items like the Parmesan-stuffed crust pizza helped lift orders and margins. <\/p>\n

CEO Russell Weiner credited the company\u2019s \u201coperational precision\u201d and ability to manage complex promotions as key to its turnaround.<\/p>\n

Bright spots amid an uneven recovery<\/h2>\n

Despite the challenges, some indicators point to resilience. <\/p>\n

Sales at US bars and restaurants rose 6.5% in the 12 months ended August, up from 4.3% a year earlier. <\/p>\n

Chad Moutray, chief economist at the National Restaurant Association, noted that consumers remain \u201csurprisingly resilient despite all the headwinds.\u201d<\/p>\n

\u201cThe good news is I don\u2019t see a recession,\u201d Moutray said. \u201cConsumers are hanging in there.\u201d<\/p>\n

Economists also highlight a rebound in consumer confidence fueled by rising incomes and record stock market highs. <\/p>\n

\u201cThe stock market\u2019s recent strength has been a significant driver,\u201d said Michael Pearce, deputy chief US economist at Oxford Economics.<\/p>\n

Meanwhile, online reservation platform OpenTable reported that bookings for the week ending October 14 were up 12% from a year earlier, with higher-end restaurants leading the gains.<\/p>\n<\/p>\n

The post From Pizza Hut to Papa John\u2019s: inside the struggles of the US restaurant industry<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Yum Brands says it is exploring strategic options for Pizza Hut, a review that could include a potential sale as the iconic pizza chain struggles to regain momentum in an increasingly competitive market. Papa John\u2019s, which had been in talks with Apollo Global for a potential $2.1 billion take-private deal, now faces uncertainty after the <\/p>\n","protected":false},"author":1,"featured_media":44951,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-44950","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=44950"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/44950\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/44951"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=44950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=44950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=44950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}