How the Nation Lost Its Craving for the Pizza Hut Chain
At one time, the popular pizza chain was the favorite for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But not as many customers are frequenting the restaurant currently, and it is closing 50% of its British outlets after being rescued from insolvency for the second instance this calendar 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, aged 24, she says “it's not a thing anymore.”
In the view of young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”
As ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to maintain. The same goes for its outlets, which are being cut from a large number to just over 60.
The chain, in common with competitors, has also faced its expenses increase. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.
Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's prices are comparable, says a culinary author.
Even though Pizza Hut does offer pickup and delivery through external services, it is falling behind to major competitors which solely cater to this market.
“Another pizza company has taken over 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 original prices are on the higher side,” notes the expert.
Yet for the couple it is worth it to get their special meal brought to their home.
“We predominantly have meals at home now more than we eat out,” says the female customer, reflecting latest data that show a decrease in people visiting informal dining spots.
In the warmer season, quick-service eateries saw a 6% drop in customers compared to last summer.
Moreover, a further alternative to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, senior partner at a major consultancy, explains that not only have retailers been selling premium ready-to-bake pizzas for years – some are even offering pizza-making appliances.
“Shifts in habits are also playing a factor in the success of fast-food chains,” says the expert.
The rising popularity of protein-rich eating plans has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.
Since people go out to eat less frequently, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.
The rise of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “dramatically shifted the general opinion of what excellent pie is,” says the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she comments.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in a county in England says: “The issue isn’t that lost interest in pizza – they just want improved value.”
Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
At Pizzarova in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.
“There are now individual slices, regional varieties, New Haven-style, artisan base, wood-fired, Detroit – it's a wonderful array for a pie fan to explore.”
Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or loyalty to the chain.
Over time, Pizza Hut's share has been sliced up and spread to its more modern, agile rivals. To keep up its costly operations, it would have to increase costs – which commentators say is difficult at a time when household budgets are shrinking.
A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and protect jobs where possible”.
He said its immediate priority was to keep running at the surviving locations and off-premise points and to support colleagues through the restructure.
However with significant funds going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the sector is “complicated and working with existing external services comes at a expense”, analysts say.
However, it's noted, cutting its costs by exiting crowded locations could be a good way to adjust.