Why the Nation Turned Away from Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
Yet fewer diners are frequenting the brand currently, and it is closing half of its UK outlets after being rescued from insolvency for the second time this year.
“We used to go 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.” Today, in her mid-twenties, she says “it's not a thing anymore.”
For young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the 1970s are now outdated.
“The manner in which they do their buffet and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”
Since ingredient expenses have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. Similarly, its restaurants, which are being reduced from 132 to a smaller figure.
The chain, similar to other firms, has also experienced its costs go up. This spring, employee wages increased due to higher minimum pay and an higher rate of employer social security payments.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.
Based on your order, Pizza Hut and Domino's prices are similar, notes a food expert.
While Pizza Hut provides pickup and delivery through external services, it is losing out to big rivals which specialize to off-premise dining.
“Another pizza company has managed to dominate 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 original prices are on the higher side,” says the analyst.
Yet for these customers it is justified to get their date night delivered to their door.
“We predominantly have meals at home now more than we eat out,” comments the female customer, reflecting latest data that show a drop in people visiting casual and fast-food restaurants.
Over the summer, informal dining venues saw a 6% drop in customers compared to the year before.
Additionally, 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 grocery stores been providing premium oven-ready pizzas for years – some are even selling home-pizza ovens.
“Evolving preferences are also having an impact in the performance of fast-food chains,” comments the expert.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.
As people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more dated than upmarket.
The rise of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what good pizza is,” says the culinary analyst.
“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she comments.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in a regional area comments: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
From the perspective of a small pizza brand in Bristol, the founder says the sector is broadening but Pizza Hut has not provided anything fresh.
“You now have individual slices, regional varieties, New Haven-style, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or loyalty to the company.
Gradually, Pizza Hut's customer base has been divided and spread 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 shrinking.
The managing director of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and retain staff where possible”.
It was explained its key goal was to maintain service at the open outlets and delivery sites and to support colleagues through the transition.
But with significant funds going into operating its locations, it may be unable to spend heavily in its off-premise division because the sector is “complex and using existing external services comes at a price”, commentators say.
But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a smart move to adjust.