Why the Nation Lost Interest in Its Appetite for Pizza Hut
At one time, the popular pizza chain was the top choice for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
However not as many diners are visiting the brand these days, and it is closing half of its UK restaurants after being bought out of administration for the second time this year.
I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's fallen out of favor.”
For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now outdated.
“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How?’”
As ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. As have its restaurants, which are being sliced from a large number to a smaller figure.
The company, like many others, has also seen its costs go up. In April this year, employee wages rose due to higher minimum pay and an rise in employer taxes.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's rates are close, notes an industry analyst.
Even though Pizza Hut provides pickup and delivery through third-party apps, it is missing out to big rivals which specialize to the delivery sector.
“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the expert.
However for these customers it is acceptable to get their evening together brought to their home.
“We absolutely dine at home now instead of we eat out,” explains the female customer, echoing current figures that show a decline in people going to informal dining spots.
During the summer months, quick-service eateries saw a 6% drop in patrons compared to the year before.
Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.
An industry leader, senior partner at a major consultancy, points out that not only have supermarkets been offering premium oven-ready pizzas for a long time – some are even promoting pizza-making appliances.
“Evolving preferences are also playing a factor in the performance of casual eateries,” comments the analyst.
The increased interest of high protein diets has driven sales at poultry outlets, while reducing sales of dough-based meals, he notes.
As people dine out not as often, they may seek out a more upscale outing, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more dated than premium.
The rise of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what excellent pie is,” explains the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, 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.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who operates a small business based in Suffolk explains: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with new customer habits.
From the perspective of an independent chain in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything new.
“Currently available are by-the-slice options, regional varieties, thin crust, artisan base, wood-fired, Detroit – it's a wonderful array for a pie fan to explore.”
He says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the company.
Over time, Pizza Hut's market has been divided and allocated to its trendier, more nimble alternatives. To keep up its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is difficult at a time when family finances are decreasing.
The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and protect jobs where possible”.
It was explained its key goal was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the change.
However with large sums going into maintaining its outlets, it probably cannot to allocate significant resources in its off-premise division because the market is “complex and working with existing delivery apps comes at a cost”, analysts say.
However, it's noted, lowering overhead by withdrawing from competitive urban areas could be a good way to adjust.