How the Country Turned Away from Its Taste for the Pizza Hut Chain
In the past, Pizza Hut was the go-to for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
But a declining number of diners are frequenting the brand nowadays, and it is reducing 50% of its British outlets after being acquired following financial trouble for the second occasion 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.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”
For 23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.
“The way they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have reduced quality... They provide so much food and you're like ‘How can they?’”
Because grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its locations, which are being sliced from over 130 to just over 60.
The company, in common with competitors, has also faced its expenses rise. Earlier this year, staffing costs jumped due to rises in minimum wages and an rise in employer social security payments.
Two diners say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.
According to your choices, Pizza Hut and Domino's costs are comparable, explains a food expert.
Even though Pizza Hut has off-premise options through delivery platforms, it is falling behind to major competitors which focus exclusively to the delivery sector.
“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” explains the specialist.
Yet for the couple it is acceptable to get their date night brought to their home.
“We absolutely dine at home now more than we eat out,” comments one of the diners, matching current figures that show a drop in people visiting informal dining spots.
During the summer months, quick-service eateries saw a 6% drop in diners compared to last summer.
Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, global lead for leisure at an advisory group, explains that not only have retailers been selling high-quality oven-ready pizzas for quite a while – some are even selling home-pizza ovens.
“Lifestyle changes are also contributing in the popularity of fast-food chains,” states the analyst.
The increased interest of protein-rich eating plans has increased sales at chicken shops, while affecting sales of dough-based meals, he adds.
Since people go out to eat more rarely, they may look for a more high-quality meal, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than upmarket.
The “explosion of high-quality pizzerias” over the last decade and a half, including boutique chains, has “dramatically shifted the general opinion of what quality pizza is,” says the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in a county in England says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”
He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
At Pizzarova in a city in southwest England, the founder says the pizza market is diversifying but Pizza Hut has not provided anything new.
“Currently available are by-the-slice options, artisanal styles, New Haven-style, artisan base, wood-fired, rectangular – it's a wonderful array for a pizza enthusiast to discover.”
He says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or loyalty to the company.
Over time, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when household budgets are shrinking.
The leadership of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and save employment where possible”.
The executive stated its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to help employees through the transition.
But with large sums going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the market is “complex and using existing external services comes at a price”, commentators say.
Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a smart move to adapt.