How the Country Lost Interest in Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But fewer patrons are frequenting the brand these days, and it is closing a significant portion of its British outlets after being rescued from insolvency for the second instance this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's fallen out of favor.”
For young customer Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now outdated.
“How they do their buffet and their salad bar, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How?’”
Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to run. The same goes for its restaurants, which are being sliced from 132 to 64.
The business, in common with competitors, has also experienced its expenses rise. Earlier this year, staffing costs increased due to increases in the legal wage floor and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.
Based on your selection, Pizza Hut and Domino's prices are comparable, explains an industry analyst.
While Pizza Hut provides takeaway and deliveries through third-party apps, it is losing out to big rivals which focus exclusively to this market.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the original prices are quite high,” notes the specialist.
Yet for the couple it is acceptable to get their evening together delivered to their door.
“We predominantly have meals at home now more than we eat out,” says one of the diners, matching current figures that show a drop in people visiting casual and fast-food restaurants.
In the warmer season, informal dining venues saw a notable decrease in customers compared to the year before.
Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been selling premium prepared pies for quite a while – some are even promoting pizza-making appliances.
“Lifestyle changes are also having an impact in the popularity of quick-service brands,” states Mr. Hawkley.
The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.
Because people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more old-fashioned than upmarket.
The rise of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “dramatically shifted the public's perception of what quality pizza is,” explains the food expert.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in Suffolk comments: “It's not that lost interest in pizza – they just want higher quality at a fair price.”
Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.
From the perspective of a small pizza brand in Bristol, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything innovative.
“You now have individual slices, London pizza, thin crust, sourdough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”
Jack says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or allegiance to the brand.
Gradually, Pizza Hut's customer base has been divided and allocated to its more modern, agile rivals. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.
It was explained its key goal was to keep running at the open outlets and off-premise points and to help employees through the restructure.
However with large sums going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the industry is “complicated and working with existing delivery apps comes at a price”, experts say.
Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a smart move to adjust.