How the Country Lost Its Taste for Pizza Hut
At one time, Pizza Hut was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.
But fewer patrons are choosing the brand nowadays, and it is shutting down a significant portion of its UK outlets after being acquired following financial trouble for the second time this year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she states “it's not a thing anymore.”
For young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.
“The manner in which they do their buffet and their salad station, it appears that they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”
As grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its outlets, which are being sliced from over 130 to just over 60.
The company, similar to other firms, has also experienced its expenses go up. Earlier this year, labor expenses increased due to higher minimum pay and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are close, says an industry analyst.
While Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which solely cater to off-premise dining.
“The rival chain has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
However for Chris and Joanne it is worth it to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” explains one of the diners, echoing latest data that show a decline in people going to quick-service eateries.
During the summer months, quick-service eateries saw a six percent decline in diners compared to the year before.
There is also one more competitor to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a leading firm, explains that not only have retailers been selling high-quality oven-ready pizzas for a long time – some are even promoting home-pizza ovens.
“Lifestyle changes are also having an impact in the performance of casual eateries,” says Mr. Hawkley.
The increased interest of protein-rich eating plans has increased sales at chicken shops, while affecting sales of dough-based meals, he notes.
Because people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more old-fashioned than premium.
The rise of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “fundamentally changed the consumer view of what excellent pie is,” notes 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 £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made 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 runs a pizza van based in a regional area comments: “It's not that fallen out of love with pizza – they just want improved value.”
He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.
From the perspective of Pizzarova in a city in southwest England, the founder says the sector is expanding but Pizza Hut has failed to offer anything new.
“There are now slice concepts, regional varieties, New Haven-style, artisan base, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the chain.
In recent years, Pizza Hut's market has been divided and allocated to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.
The managing director of Pizza Hut's global operations said the rescue aimed “to ensure our customer service and protect jobs where possible”.
The executive stated its immediate priority was to continue operating at the surviving locations and delivery sites and to support colleagues through the change.
However with large sums going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the industry is “complex and partnering with existing third-party platforms comes at a price”, experts say.
But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a smart move to adapt.