How the Country Lost Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.
Yet fewer customers are choosing the chain currently, and it is closing 50% of its UK restaurants after being rescued from insolvency for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she comments “it's not a thing anymore.”
For young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now not-so-hot.
“The manner in which they do their buffet and their salad bar, it seems as if they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”
Since grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from a large number to a smaller figure.
The company, in common with competitors, has also seen its operating costs go up. This spring, employee wages increased due to higher minimum pay and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.
According to your selection, Pizza Hut and Domino's rates are close, notes a food expert.
Even though Pizza Hut has pickup and delivery through external services, it is missing out to big rivals which solely cater to the delivery sector.
“Domino's has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the analyst.
But for these customers it is justified to get their special meal sent directly.
“We absolutely dine at home now more than we eat out,” says one of the diners, matching latest data that show a drop in people frequenting quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.
Moreover, another rival to pizza from eateries: the supermarket pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been selling high-quality oven-ready pizzas for years – some are even offering home-pizza ovens.
“Evolving preferences are also having an impact in the success of quick-service brands,” comments the analyst.
The increased interest of high protein diets has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.
Because people visit restaurants not as often, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than premium.
The growth of artisanal pizza places” over the last 10 to 15 years, such as boutique chains, has “dramatically shifted the general opinion of what excellent pie is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in Suffolk comments: “It's not that stopped liking pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
From the perspective of Pizzarova in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.
“There are now individual slices, London pizza, new haven, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza-loving consumer to explore.”
Jack says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the company.
In recent years, Pizza Hut's share has been sliced up and distributed to its fresher, faster alternatives. To maintain its costly operations, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are decreasing.
A senior executive of Pizza Hut's global operations said the rescue aimed “to protect our guest experience and protect jobs where possible”.
It was explained its immediate priority was to keep running at the open outlets and off-premise points and to assist staff through the transition.
But with significant funds going into maintaining its outlets, it likely can't afford to spend heavily in its delivery service because the industry is “complex and partnering with existing external services comes at a price”, analysts say.
But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.