Why the Nation Lost Its Taste for the Pizza Hut Chain
At one time, the popular pizza chain was the go-to for families and friends to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
However fewer patrons are frequenting the chain nowadays, and it is closing half of its British restaurants after being bought out of administration for the second time this year.
I remember going Pizza Hut when I was a child,” notes 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 says “it's no longer popular.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now less appealing.
“How they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How can they?’”
Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to run. As have its locations, which are being reduced from a large number to 64.
The company, in common with competitors, has also experienced its expenses increase. This spring, employee wages rose due to higher minimum pay and an rise in employer social security payments.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.
According to your order, Pizza Hut and Domino's rates are close, explains a food expert.
Although Pizza Hut does offer pickup and delivery through external services, it is falling behind to big rivals which specialize to this market.
“Domino's has managed to dominate the delivery market thanks to intensive advertising and constantly running deals that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the analyst.
However for these customers it is justified to get their evening together sent directly.
“We definitely eat at home now instead of we eat out,” comments Joanne, reflecting latest data that show a decline in people visiting informal dining spots.
Over the summer, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.
Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have supermarkets been selling good-standard ready-to-bake pizzas for a long time – some are even selling countertop ovens.
“Shifts in habits are also playing a factor in the success of quick-service brands,” says the analyst.
The growing trend of protein-rich eating plans has driven sales at chicken shops, while reducing sales of dough-based meals, he continues.
Since people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than premium.
The “explosion of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “completely altered the public's perception of what good pizza is,” notes the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made 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 owns a small business based in a county in England explains: “It's not that lost interest in pizza – they just want better pizza for their money.”
Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.
According to Pizzarova in a UK location, the founder says the sector is broadening but Pizza Hut has failed to offer anything new.
“You now have slice concepts, London pizza, New Haven-style, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to try.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the brand.
Over time, Pizza Hut's market has been sliced up and spread to its more modern, agile rivals. To keep up its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when personal spending are tightening.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our customer service and save employment where possible”.
It was explained its immediate priority was to continue operating at the open outlets and delivery sites and to help employees through the transition.
But with so much money going into running its restaurants, it may be unable to spend heavily in its delivery service because the sector is “complex and working with existing delivery apps comes at a expense”, analysts say.
Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a smart move to adapt.