Why the Country Turned Away from Its Taste for the Pizza Hut Chain
In the past, Pizza Hut was the go-to for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
Yet a declining number of diners are choosing the restaurant these days, and it is closing a significant portion of its UK locations after being acquired following financial trouble for the second time this year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she comments “it's no longer popular.”
For young customer Martina, certain features Pizza Hut has been famous for since it started in the UK in the 1970s are now outdated.
“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”
Because grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its locations, which are being cut from a large number to just over 60.
The business, similar to other firms, has also seen its costs go up. Earlier this year, staffing costs rose due to rises in minimum wages and an increase in employer national insurance contributions.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's prices are comparable, explains a culinary author.
While Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to major competitors which solely cater to the delivery sector.
“Another pizza company has managed to dominate the takeaway pizza sector thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are on the higher side,” notes the expert.
Yet for Chris and Joanne it is worth it to get their date night brought to their home.
“We predominantly have meals at home now rather than we eat out,” says Joanne, reflecting recent statistics that show a decline in people visiting quick-service eateries.
In the warmer season, informal dining venues saw a six percent decline in customers compared to last summer.
Moreover, another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, global lead for leisure at a major consultancy, points out that not only have retailers been selling good-standard prepared pies for quite a while – some are even offering home-pizza ovens.
“Lifestyle changes are also having an impact in the performance of fast-food chains,” states Mr. Hawkley.
The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he continues.
Because people visit restaurants less frequently, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than upmarket.
The rise of high-quality pizzerias” over the last several years, such as new entrants, has “dramatically shifted the public's perception of what good pizza is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she states.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in Suffolk says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
According to an independent chain in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything new.
“There are now slice concepts, artisanal styles, thin crust, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to try.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the chain.
Gradually, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble alternatives. To maintain its costly operations, it would have to raise prices – which commentators say is difficult at a time when family finances are tightening.
The managing director of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining experience and retain staff where possible”.
The executive stated its first focus was to maintain service at the surviving locations and off-premise points and to support colleagues through the change.
However with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the sector is “complex and using existing external services comes at a cost”, commentators say.
However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a smart move to evolve.