How the Nation Lost Its Craving for the Pizza Hut Chain
Once, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
But fewer customers are visiting the brand these days, and it is closing a significant portion of its UK restaurants after being bought out of administration for the second instance this year.
It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's fallen out of favor.”
According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.
“How they do their buffet and their salad station, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”
As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being reduced from 132 to a smaller figure.
The business, like many others, has also experienced its costs go up. In April this year, employee wages rose due to increases in the legal wage floor and an rise in employer taxes.
Two diners mention they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.
According to your order, Pizza Hut and Domino's rates are similar, notes an industry analyst.
Even though Pizza Hut does offer off-premise options through third-party apps, it is losing out to big rivals which specialize to this market.
“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the analyst.
But for Chris and Joanne it is justified to get their special meal brought to their home.
“We definitely eat at home now instead of we eat out,” comments the female customer, echoing current figures that show a decline in people going to informal dining spots.
In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.
Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, senior partner at a leading firm, explains that not only have retailers been offering good-standard prepared pies for a long time – some are even selling home-pizza ovens.
“Shifts in habits are also contributing in the performance of fast-food chains,” states Mr. Hawkley.
The increased interest of protein-rich eating plans has increased sales at poultry outlets, while reducing sales of carb-heavy pizza, he adds.
Since people go out to eat less frequently, they may look for a more high-quality meal, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more old-fashioned than premium.
The rise of premium pizza outlets” over the last 10 to 15 years, such as boutique chains, has “completely altered the consumer view of what excellent pie is,” explains the culinary analyst.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a pizza van based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”
Dan says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.
From the perspective of a small pizza brand in a UK location, the proprietor says the sector is diversifying but Pizza Hut has neglected to introduce anything fresh.
“There are now slice concepts, artisanal styles, new haven, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to explore.”
Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's market has been fragmented and distributed to its fresher, faster rivals. To sustain its high labor and location costs, it would have to raise prices – which commentators say is challenging at a time when family finances are tightening.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and protect jobs where possible”.
The executive stated its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to help employees through the transition.
Yet with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its off-premise division because the market is “complicated and using existing delivery apps comes at a expense”, commentators say.
However, it's noted, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.