Why the Country Turned Away from Its Taste for Pizza Hut
In the past, Pizza Hut was the top choice for parents and children to enjoy its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.
Yet a declining number of patrons are frequenting the restaurant nowadays, and it is reducing 50% of its UK locations after being bought out of administration for the second time this year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she comments “it's not a thing anymore.”
In the view of 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 less appealing.
“How they do their buffet and their salad bar, it feels like they are cutting corners and have lower standards... They offer so much food and you're like ‘How is that possible?’”
As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its restaurants, which are being sliced from a large number to just over 60.
The business, like many others, has also seen its costs go up. This spring, labor expenses increased due to rises in minimum wages and an higher rate of employer national insurance contributions.
Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's rates are similar, says a culinary author.
Although Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to larger chains which specialize to this market.
“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are quite high,” explains the specialist.
But for the couple it is acceptable to get their evening together sent directly.
“We predominantly have meals at home now instead of we eat out,” comments one of the diners, matching current figures that show a drop in people frequenting casual and fast-food restaurants.
During the summer months, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.
Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, senior partner at a leading firm, notes that not only have grocery stores been providing good-standard prepared pies for quite a while – some are even offering countertop ovens.
“Evolving preferences are also playing a factor in the success of fast-food chains,” says the analyst.
The increased interest of high protein diets has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he notes.
Because people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than upmarket.
The growth of artisanal pizza places” over the last decade and a half, including popular brands, has “dramatically shifted the consumer view of what excellent pie is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
According to a small pizza brand in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has neglected to introduce anything new.
“There are now individual slices, regional varieties, thin crust, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pizza-loving consumer to try.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the chain.
Over time, Pizza Hut's share has been sliced up and distributed to its more modern, agile rivals. To sustain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when personal spending are tightening.
The leadership of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and retain staff where possible”.
The executive stated its first focus was to maintain service at the surviving locations and delivery sites and to assist staff through the restructure.
But with so much money going into operating its locations, it may be unable to spend heavily in its takeaway operation because the market is “complicated and partnering with existing third-party platforms comes at a expense”, commentators say.
But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a effective strategy to adjust.