Why the Country Turned Away from Its Craving for Pizza Hut
In the past, the popular pizza chain was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
However fewer patrons are visiting the restaurant these days, and it is reducing a significant portion of its British outlets after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she comments “it's fallen out of favor.”
According to 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now not-so-hot.
“The way they do their all-you-can-eat and their salad bar, it feels like 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 increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its outlets, which are being sliced from over 130 to a smaller figure.
The chain, like many others, has also faced its operating costs rise. Earlier this year, staffing costs rose due to rises in minimum wages and an increase in employer social security payments.
Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's costs are close, notes a culinary author.
Even though Pizza Hut provides off-premise options through third-party apps, it is missing out to larger chains which solely cater to this market.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” says the specialist.
However for Chris and Joanne it is acceptable to get their date night sent directly.
“We definitely eat at home now instead of we eat out,” comments Joanne, reflecting current figures that show a decrease in people frequenting quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.
Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.
A hospitality expert, global lead for leisure at an advisory group, notes that not only have supermarkets been selling high-quality ready-to-bake pizzas for quite a while – some are even promoting home-pizza ovens.
“Lifestyle changes are also playing a factor in the performance of quick-service brands,” says the analyst.
The increased interest of high protein diets has boosted sales at chicken shops, while hitting sales of carb-heavy pizza, he notes.
Since people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more retro than premium.
The “explosion of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “dramatically shifted the consumer view of what quality pizza is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, 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.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a chain 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?
“The decision is simple.”
An independent operator, who operates a small business based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
At an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything fresh.
“There are now individual slices, regional varieties, thin crust, sourdough, Neapolitan, deep-dish – it's a wonderful array for a pizza enthusiast to try.”
Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the company.
Gradually, Pizza Hut's customer base has been divided and allocated to its trendier, more nimble alternatives. To keep up its costly operations, it would have to increase costs – which experts say is difficult at a time when family finances are tightening.
The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and save employment where possible”.
It was explained its immediate priority was to keep running at the open outlets and takeaway hubs and to assist staff through the restructure.
Yet with so much money going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the market is “difficult and partnering with existing third-party platforms comes at a cost”, analysts say.
But, he adds, cutting its costs by leaving crowded locations could be a effective strategy to evolve.