How the Country Lost Interest in Its Craving for Pizza Hut
In the past, the popular pizza chain was the go-to for families and friends to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
However not as many patrons are frequenting the chain these days, and it is closing a significant portion of its UK restaurants after being bought out of administration for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “it's not a thing anymore.”
For 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now outdated.
“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
As food prices have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to operate. Similarly, its outlets, which are being reduced from a large number to a smaller figure.
The chain, in common with competitors, has also experienced its operating costs go up. This spring, staffing costs rose due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
Based on your selection, Pizza Hut and Domino's prices are comparable, explains a culinary author.
Although Pizza Hut has off-premise options through delivery platforms, it is losing out to major competitors which specialize to off-premise dining.
“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the specialist.
However for these customers it is justified to get their special meal delivered to their door.
“We absolutely dine at home now rather than we eat out,” explains Joanne, matching recent statistics that show a decrease in people frequenting informal dining spots.
In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to last summer.
Moreover, another rival to ordered-in pies: the supermarket pizza.
Will Hawkley, senior partner at an advisory group, points out that not only have retailers been offering good-standard oven-ready pizzas for a long time – some are even promoting home-pizza ovens.
“Evolving preferences are also playing a factor in the popularity of quick-service brands,” states Mr. Hawkley.
The growing trend of high protein diets has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he notes.
Because people dine out not as often, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.
The “explosion of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “completely altered the public's perception of what excellent pie is,” says the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a small business based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
From the perspective of a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.
“There are now individual slices, London pizza, thin crust, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pie fan to explore.”
He says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or attachment to the company.
Over time, Pizza Hut's customer base has been divided and distributed to its fresher, faster competitors. To keep up its expensive staffing and restaurants, it would have to charge more – which experts say is challenging at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
He said its immediate priority was to maintain service at the surviving locations and takeaway hubs and to help employees through the transition.
Yet with large sums going into operating its locations, it may be unable to spend heavily in its off-premise division because the industry is “complex and partnering with existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, cutting its costs by leaving competitive urban areas could be a good way to adapt.