How the Country Lost Interest in Its Taste for Pizza Hut
At one time, the popular pizza chain was the top choice for families and friends to enjoy its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
But a declining number of patrons are choosing the chain these days, and it is shutting down half of its British outlets after being acquired following financial trouble for the second instance this year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she states “it's not a thing anymore.”
According to 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 mid-20th century are now less appealing.
“The way 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 can they?’”
Because grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its outlets, which are being reduced from over 130 to a smaller figure.
The chain, like many others, has also experienced its operating costs go up. Earlier this year, employee wages increased due to increases in the legal wage floor and an increase in employer national insurance contributions.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's rates are close, explains an industry analyst.
Although Pizza Hut provides off-premise options through third-party apps, it is losing out to larger chains which focus exclusively to the delivery sector.
“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the specialist.
However for the couple it is acceptable to get their evening together delivered to their door.
“We predominantly have meals at home now more than we eat out,” says the female customer, matching latest data that show a decrease in people going to informal dining spots.
In the warmer season, quick-service eateries saw a notable decrease in patrons compared to the year before.
Moreover, another rival to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at an advisory group, points out that not only have grocery stores been offering high-quality oven-ready pizzas for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also contributing in the popularity of casual eateries,” comments Mr. Hawkley.
The growing trend of low-carb regimens has boosted sales at poultry outlets, while reducing sales of carb-heavy pizza, he continues.
Because people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more dated than luxurious.
The “explosion of premium pizza outlets” over the last several years, for example new entrants, has “dramatically shifted the public's perception of what excellent pie is,” explains the food expert.
“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 downfall,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates Smokey Deez based in a regional area explains: “It's not that stopped liking pizza – they just want better pizza for their money.”
Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.
According to an independent chain in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.
“There are now individual slices, artisanal styles, thin crust, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pie fan to discover.”
He says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the brand.
In recent years, Pizza Hut's share has been fragmented and allocated to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the buyout aimed “to protect our guest experience and protect jobs where possible”.
The executive stated its key goal was to maintain service at the surviving locations and off-premise points and to assist staff through the change.
Yet with large sums going into maintaining its outlets, it likely can't afford to invest too much in its off-premise division because the industry is “difficult and using existing external services comes at a cost”, analysts say.
Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to evolve.