Why the Country Lost Interest in Its Appetite for Pizza Hut
At one time, Pizza Hut was the favorite for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
But fewer diners are choosing the chain nowadays, and it is closing a significant portion of its British outlets after being bought out of administration for the second occasion this year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”
In the view of young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.
“The way they do their buffet and their salad bar, it appears that they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Because food prices have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its outlets, which are being reduced from over 130 to just over 60.
The chain, similar to other firms, has also experienced its costs increase. Earlier this year, staffing costs jumped due to higher minimum pay and an rise in employer social security payments.
Chris, 36, and Joanne, 29 mention they frequently dined 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 comparable, says a food expert.
While Pizza Hut has pickup and delivery through delivery platforms, it is losing out to larger chains which solely cater to the delivery sector.
“Domino's has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” notes the analyst.
Yet for Chris and Joanne it is justified to get their date night brought to their home.
“We absolutely dine at home now rather than we eat out,” comments one of the diners, matching current figures that show a decline in people going to casual and fast-food restaurants.
During the summer months, informal dining venues saw a notable decrease in diners compared to the year before.
Additionally, one more competitor to pizza from eateries: the supermarket pizza.
A hospitality expert, senior partner at an advisory group, points out that not only have supermarkets been providing good-standard prepared pies for quite a while – some are even selling countertop ovens.
“Evolving preferences are also having an impact in the popularity of fast-food chains,” states the analyst.
The rising popularity of high protein diets has boosted sales at chicken shops, while hitting sales of high-carbohydrate options, he notes.
Because people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than upmarket.
The “explosion of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “fundamentally changed the general opinion of what quality pizza is,” explains the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a small business based in a regional area comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
At a small pizza brand in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything new.
“Currently available are slice concepts, regional varieties, new haven, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pie fan to try.”
Jack says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or allegiance to the chain.
Over time, Pizza Hut's share has been divided and allocated to its more modern, agile alternatives. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when personal spending are tightening.
A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our customer service and save employment where possible”.
It was explained its immediate priority was to maintain service at the surviving locations and takeaway hubs and to assist staff through the change.
But with so much money going into running its restaurants, it probably cannot to allocate significant resources in its takeaway operation because the market is “difficult and partnering with existing third-party platforms comes at a cost”, commentators say.
However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a smart move to adjust.