How the Nation Lost Its Appetite for the Pizza Hut Chain
At one time, Pizza Hut was the top choice for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
But fewer diners are frequenting the chain currently, and it is shutting down a significant portion of its UK outlets after being rescued from insolvency for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she comments “it's not a thing anymore.”
In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.
“How they do their buffet and their salad bar, it seems as if they are cutting corners and have reduced quality... They provide so much food and you're like ‘How?’”
Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its restaurants, which are being cut from over 130 to 64.
The business, like many others, has also seen its costs go up. This spring, labor expenses jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's rates are comparable, explains a food expert.
While Pizza Hut does offer takeaway and deliveries through third-party apps, it is missing out to major competitors which solely cater to this market.
“The rival chain has taken over the delivery market thanks to strong promotions 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,” says the expert.
But for the couple it is worth it to get their date night sent directly.
“We predominantly have meals at home now instead of we eat out,” comments the female customer, matching latest data that show a drop in people visiting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a 6% drop in customers compared to the year before.
There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.
An industry leader, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been providing good-standard ready-to-bake pizzas for a long time – some are even selling countertop ovens.
“Lifestyle changes are also contributing in the performance of casual eateries,” states the analyst.
The growing trend of high protein diets has increased sales at poultry outlets, while reducing sales of dough-based meals, he continues.
Since people dine out less frequently, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than premium.
The “explosion of premium pizza outlets” over the last several years, including new entrants, has “dramatically shifted the public's perception of what good pizza is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in a regional area says: “People haven’t lost interest in pizza – they just want improved value.”
The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
At an independent chain in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has failed to offer anything new.
“There are now slice concepts, regional varieties, New Haven-style, sourdough, traditional Italian, Detroit – it's a wonderful array for a pie fan to discover.”
He says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the company.
Gradually, Pizza Hut's share has been divided and allocated to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is tough at a time when family finances are shrinking.
The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and save employment where possible”.
The executive stated its key goal was to continue operating at the surviving locations and takeaway hubs and to assist staff through the change.
Yet with large sums going into operating its locations, it may be unable to spend heavily in its takeaway operation because the sector is “complex and partnering with existing third-party platforms comes at a expense”, experts say.
However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.