Why the Country Lost Interest in Its Craving for Pizza Hut
Once, Pizza Hut was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.
However a declining number of patrons are frequenting the restaurant currently, and it is reducing half of its British restaurants after being acquired following financial trouble 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.” However, at present, as a young adult, she says “it's fallen out of favor.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now not-so-hot.
“The way they do their buffet and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”
Because food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to operate. As have its locations, which are being cut from a large number to 64.
The company, similar to other firms, has also seen its costs rise. This spring, employee wages rose due to increases in the legal wage floor and an higher rate of employer social security payments.
Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
According to your order, Pizza Hut and Domino's rates are close, says an industry analyst.
Although Pizza Hut has pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to this market.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the expert.
However for these customers it is acceptable to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” comments one of the diners, reflecting latest data that show a drop in people going to quick-service eateries.
In the warmer season, informal dining venues saw a notable decrease in customers compared to the previous year.
There is also another rival to ordered-in pies: the supermarket pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have retailers been selling good-standard ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.
“Shifts in habits are also having an impact in the popularity of casual eateries,” states the expert.
The rising popularity of low-carb regimens has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he adds.
As people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than luxurious.
The growth of premium pizza outlets” over the last several years, such as boutique chains, has “dramatically shifted the public's perception of what good pizza is,” says the food expert.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand 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.”
Dan Puddle, who operates a small business based in Suffolk explains: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”
He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
At an independent chain in Bristol, the founder says the industry is broadening but Pizza Hut has failed to offer anything fresh.
“Currently available are individual slices, London pizza, new haven, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”
Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the brand.
Over time, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is challenging at a time when family finances are shrinking.
The managing director of Pizza Hut's global operations said the acquisition aimed “to protect our dining experience and save employment where possible”.
It was explained its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
But with significant funds going into running its restaurants, it likely can't afford to invest too much in its takeaway operation because the sector is “difficult and partnering with existing external services comes at a cost”, analysts say.
But, he adds, lowering overhead by leaving crowded locations could be a smart move to adapt.