How the Country Lost Its Appetite for the Pizza Hut Chain
Once, Pizza Hut was the go-to for parents and children to indulge in its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
But fewer diners are choosing the chain currently, and it is reducing a significant portion of its British locations after being bought out of administration for the second instance this year.
It was common to visit 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.” But now, aged 24, she states “it's fallen out of favor.”
According to young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.
“How they do their buffet and their salad station, it feels like they are cutting corners and have lower standards... They provide so much food and you're like ‘How?’”
Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its restaurants, which are being sliced from 132 to 64.
The company, in common with competitors, has also experienced its operating costs go up. This spring, labor expenses increased due to increases in the legal wage floor and an higher rate of employer social security payments.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.
According to your order, Pizza Hut and Domino's rates are comparable, explains a food expert.
Although Pizza Hut provides pickup and delivery through external services, it is missing out to larger chains which specialize to off-premise dining.
“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.
However for Chris and Joanne it is justified to get their evening together delivered to their door.
“We definitely eat at home now more than we eat out,” says Joanne, echoing current figures that show a decrease in people visiting informal dining spots.
Over the summer, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.
Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.
An industry leader, global lead for leisure at a major consultancy, notes that not only have retailers been offering good-standard oven-ready pizzas for quite a while – some are even promoting countertop ovens.
“Shifts in habits are also contributing in the popularity of fast-food chains,” states the expert.
The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.
Because people dine out not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than upmarket.
The growth of artisanal pizza places” over the last several years, such as boutique chains, has “fundamentally changed the consumer view of what excellent pie is,” says the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a pizza van based in a county in England says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
At Pizzarova in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything innovative.
“You now have individual slices, artisanal styles, New Haven-style, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the brand.
In recent years, Pizza Hut's customer base has been sliced up and spread to its fresher, faster alternatives. To maintain its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are shrinking.
The leadership of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and save employment where possible”.
He said its first focus was to continue operating at the open outlets and off-premise points and to help employees through the change.
But with so much money going into running its restaurants, it likely can't afford to spend heavily in its takeaway operation because the market is “complex and working with existing external services comes at a expense”, experts say.
But, he adds, lowering overhead by exiting competitive urban areas could be a effective strategy to adjust.