Why the Nation Turned Away from Its Craving for Pizza Hut
Once, the popular pizza chain was the top choice for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.
Yet a declining number of diners are choosing the brand currently, and it is reducing half of its British restaurants after being bought out of administration for the second occasion this year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she comments “it's not a thing anymore.”
In the view of 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 manner in which they do their buffet and their salad station, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How?’”
As grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its outlets, which are being cut from a large number to a smaller figure.
The business, in common with competitors, has also faced its expenses go up. In April this year, staffing costs jumped due to higher minimum pay and an higher rate of employer national insurance contributions.
Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.
Depending on your order, Pizza Hut and Domino's costs are similar, explains an industry analyst.
Even though Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to larger chains which solely cater to this market.
“Domino's has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the specialist.
However for these customers it is worth it to get their evening together delivered to their door.
“We definitely eat at home now more than we eat out,” says the female customer, matching recent statistics that show a decline in people frequenting informal dining spots.
During the summer months, informal dining venues saw a notable decrease in patrons compared to last summer.
Moreover, another rival to pizza from eateries: the cook-at-home oven pizza.
An industry leader, global lead for leisure at a leading firm, explains that not only have retailers been providing premium ready-to-bake pizzas for years – some are even promoting pizza-making appliances.
“Evolving preferences are also contributing in the popularity of quick-service brands,” states the expert.
The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he notes.
Because people dine out less frequently, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than luxurious.
The rise of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “fundamentally changed the consumer view of what quality 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 caused Pizza Hut's downfall,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”
The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.
According to Pizzarova in Bristol, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything new.
“Currently available are by-the-slice options, London pizza, thin crust, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”
The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or attachment to the chain.
In recent years, Pizza Hut's customer base has been fragmented and distributed to its more modern, agile competitors. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when household budgets are shrinking.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our dining experience and save employment where possible”.
He said its immediate priority was to continue operating at the surviving locations and delivery sites and to support colleagues through the change.
Yet with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the industry is “complicated and partnering with existing delivery apps comes at a expense”, experts say.
However, it's noted, lowering overhead by leaving competitive urban areas could be a good way to evolve.