Why the Country Lost Interest in Its Taste for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
However fewer diners are visiting the restaurant nowadays, and it is closing a significant portion of its British locations after being bought out of administration for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's fallen out of favor.”
In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.
“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How?’”
Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its locations, which are being sliced from over 130 to 64.
The company, similar to other firms, has also seen its costs rise. This spring, employee wages increased due to higher minimum pay and an increase in employer taxes.
Two diners say they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Depending on your order, Pizza Hut and Domino's costs are comparable, explains a culinary author.
Although Pizza Hut provides off-premise options through third-party apps, it is falling behind to major competitors which specialize to the delivery sector.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the specialist.
Yet for Chris and Joanne it is justified to get their evening together delivered to their door.
“We absolutely dine at home now more than we eat out,” comments Joanne, matching current figures that show a decline in people frequenting casual and fast-food restaurants.
In the warmer season, quick-service eateries saw a 6% drop in patrons compared to last summer.
There is also one more competitor to pizza from eateries: the supermarket pizza.
A hospitality expert, senior partner at a major consultancy, explains that not only have supermarkets been offering premium ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.
“Shifts in habits are also playing a factor in the success of casual eateries,” says the analyst.
The increased interest of protein-rich eating plans has increased sales at poultry outlets, while reducing sales of dough-based meals, he notes.
Because people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more retro than premium.
The growth of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she states.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a small business based in a regional area says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”
Dan says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
From the perspective of an independent chain in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.
“Currently available are by-the-slice options, regional varieties, thin crust, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or loyalty to the chain.
In recent years, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when household budgets are tightening.
The leadership of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.
The executive stated its key goal was to keep running at the open outlets and delivery sites and to help employees through the transition.
Yet with large sums going into running its restaurants, it probably cannot to spend heavily in its delivery service because the sector is “complex and partnering with existing delivery apps comes at a price”, experts say.
But, he adds, lowering overhead by withdrawing from crowded locations could be a effective strategy to evolve.