How the Nation Lost Its Appetite for the Pizza Hut Chain
In the past, Pizza Hut was the go-to for parents and children to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
However not as many customers are frequenting the brand these days, and it is shutting down half of its UK locations after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's no longer popular.”
In the view of young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.
“The way 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?’”
As grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to operate. Similarly, its locations, which are being cut from 132 to just over 60.
The company, in common with competitors, has also faced its operating costs rise. In April this year, staffing costs rose due to rises in minimum wages and an higher rate of employer taxes.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “not good value”.
According to your order, Pizza Hut and Domino's costs are close, notes a food expert.
Even though Pizza Hut does offer takeaway and deliveries through third-party apps, it is missing out to big rivals which focus exclusively to this market.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the expert.
However for Chris and Joanne it is acceptable to get their evening together sent directly.
“We definitely eat at home now instead of we eat out,” explains Joanne, matching latest data that show a drop in people frequenting quick-service eateries.
In the warmer season, informal dining venues saw a notable decrease in patrons compared to the previous year.
Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.
An industry leader, global lead for leisure at an advisory group, notes that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even selling countertop ovens.
“Lifestyle changes are also playing a factor in the success of casual eateries,” comments the expert.
The growing trend of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.
As people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.
The rise of premium pizza outlets” over the last decade and a half, such as new entrants, has “fundamentally changed the general opinion of what excellent pie is,” says the industry commentator.
“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she states.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in a county in England explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything new.
“There are now slice concepts, artisanal styles, new haven, sourdough, wood-fired, Detroit – it's a wonderful array for a pie fan to try.”
The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the chain.
In recent years, Pizza Hut's share has been fragmented and allocated to its fresher, faster competitors. To sustain its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when family finances are decreasing.
A senior executive of Pizza Hut's global operations said the rescue aimed “to safeguard our guest experience and save employment where possible”.
He said its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to assist staff through the change.
But with so much money going into running its restaurants, it may be unable to spend heavily in its off-premise division because the market is “complicated and partnering with existing delivery apps comes at a price”, commentators say.
But, he adds, reducing expenses by leaving competitive urban areas could be a good way to adapt.