How the Nation Lost Interest in Its Craving for Pizza Hut
Once, the popular pizza chain was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
However not as many customers are choosing the chain these days, and it is closing a significant portion of its UK restaurants after being rescued from insolvency for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's fallen out of favor.”
For 23-year-old Martina, the very elements 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 lowering standards and have inferior offerings... They provide so much food and you're like ‘How?’”
Because ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. Similarly, its restaurants, which are being sliced from over 130 to 64.
The chain, similar to other firms, has also faced its operating costs rise. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer taxes.
Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.
According to your choices, Pizza Hut and Domino's costs are comparable, notes an industry analyst.
While Pizza Hut has off-premise options through external services, it is falling behind to major competitors which focus exclusively to this market.
“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” says the specialist.
But for Chris and Joanne it is justified to get their special meal brought to their home.
“We absolutely dine at home now more than we eat out,” comments one of the diners, reflecting recent statistics that show a decrease in people frequenting informal dining spots.
In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.
Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, global lead for leisure at an advisory group, notes that not only have supermarkets been providing good-standard ready-to-bake pizzas for years – some are even promoting countertop ovens.
“Evolving preferences are also having an impact in the performance of quick-service brands,” comments Mr. Hawkley.
The growing trend of high protein diets has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he adds.
Because people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more retro than luxurious.
The “explosion of high-quality pizzerias” over the last several years, such as new entrants, has “dramatically shifted the consumer view of what excellent pie is,” explains the food expert.
“A light, fresh, easy-to-digest product 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 says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates Smokey Deez based in a regional area says: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.
At an independent chain in a UK location, the proprietor says the industry is expanding but Pizza Hut has not provided anything innovative.
“There are now slice concepts, regional varieties, new haven, sourdough, wood-fired, Detroit – it's a heavenly minefield for a pizza-loving consumer to explore.”
He says Pizza Hut “should transform” as the youth don't have any fond memories or attachment to the brand.
Gradually, Pizza Hut's market has been fragmented and spread to its fresher, faster alternatives. To maintain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when family finances are shrinking.
The managing director of Pizza Hut's global operations said the rescue aimed “to protect our guest experience and retain staff where possible”.
It was explained its first focus was to maintain service at the surviving locations and takeaway hubs and to assist staff through the restructure.
However with so much money going into maintaining its outlets, it probably cannot to spend heavily in its takeaway operation because the sector is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.
Still, experts suggest, lowering overhead by leaving oversaturated towns and city centres could be a good way to evolve.