Pizza Hut Lost in the U.S. Now It’s Selling for $2.7B. | WSJ What Went Wrong

Pizza Hut was once a beloved family restaurant known for its checkered tablecloths, red roofs, and crispy [music] pan pies. >> [screaming] >> And for decades, it was the biggest pizza chain [music] in the world. But now, after years of struggling to keep up, Pizza Hut will be sold by parent company Yum Brands in a $2.7 [music]

billion deal. So, what went wrong? In 1969, Pizza Hut went public >> [music] >> and 2 years later became the world's largest pizza chain. Then in 1977, [music] they sold the company to PepsiCo for $320 million. This was PepsiCo's [music] first entry into the restaurant business and was later spun off in 1997 into

[music] what became known as Yum Brands. >> A lot of people have seen those red roof restaurants, which was traditionally a dine-in concept. And it was a place that families could come, sit down, and [music] where you could get pizza and soda and drinks. So, they are known for this really crispy pan pizza. They also

were known for the meat lovers pizza. They are credited with inventing stuffed crust. >> It's wrong, isn't [music] it? But it feels so right. >> Then it's a deal? >> Yes, we eat our pizza the wrong way. >> Crust first. >> But in the decades since, the pizza wars have heated up. >> Pizza Hut was so focused on its dine-in

business, but more people are looking for to-go food. So, delivery, takeout, Pizza Hut just wasn't as strong there, particularly when you compare it to Domino's, which has really been all about delivery forever. Domino's became dominant and really hasn't gotten away from its edge since. >> Consumer taste is also changing. The fast-food pizza market in the US [music]