Why the Nation Lost Interest in Its Taste for the Pizza Hut Chain
Once, Pizza Hut was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.
But not as many diners are choosing the brand nowadays, and it is shutting down a significant portion of its British locations after being rescued from insolvency for the second time this year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.
“How they do their buffet and their salad station, it seems as if they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”
Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from 132 to just over 60.
The chain, similar to other firms, has also experienced its operating costs rise. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
According to your order, Pizza Hut and Domino's costs are comparable, notes an industry analyst.
While Pizza Hut provides takeaway and deliveries through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.
“Another pizza company has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the specialist.
However for Chris and Joanne it is worth it to get their special meal brought to their home.
“We absolutely dine at home now more than we eat out,” says Joanne, echoing latest data that show a drop in people frequenting quick-service eateries.
In the warmer season, informal dining venues saw a 6% drop in diners compared to last summer.
There is also one more competitor to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at an advisory group, points out that not only have supermarkets been offering good-standard prepared pies for years – some are even selling home-pizza ovens.
“Lifestyle changes are also playing a factor in the success of fast-food chains,” says the analyst.
The rising popularity of high protein diets has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he adds.
As people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than luxurious.
The “explosion of artisanal pizza places” over the last several years, for example boutique chains, has “dramatically shifted the public's perception of what good pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared 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 operates a small business based in Suffolk comments: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
According to Pizzarova in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything fresh.
“There are now individual slices, regional varieties, thin crust, fermented dough, wood-fired, deep-dish – it's a wonderful array for a pizza-loving consumer to explore.”
Jack says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or loyalty to the chain.
Gradually, Pizza Hut's customer base has been fragmented and spread to its more modern, agile competitors. To sustain its costly operations, it would have to raise prices – which commentators say is tough at a time when family finances are shrinking.
The leadership of Pizza Hut's overseas branches said the buyout aimed “to protect our guest experience and save employment where possible”.
It was explained its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.
However with large sums going into running its restaurants, it likely can't afford to spend heavily in its delivery service because the sector is “complicated and partnering with existing delivery apps comes at a expense”, analysts say.
However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.