Why the Nation Turned Away from Its Craving for Pizza Hut
In the past, the popular pizza chain was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.
However a declining number of patrons are frequenting the brand nowadays, and it is reducing half of its British outlets after being rescued from insolvency for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she states “it's no longer popular.”
According to a diner in her twenties, certain features Pizza Hut has been recognized for since it launched in the UK in the seventies are now outdated.
“How they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have lower standards... They provide so much food and you're like ‘How?’”
As grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its outlets, which are being sliced from a large number to 64.
The business, in common with competitors, has also seen its expenses rise. This spring, employee wages jumped due to higher minimum pay and an increase in employer taxes.
Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Based on your order, Pizza Hut and Domino's prices are close, notes an industry analyst.
Although Pizza Hut provides pickup and delivery through external services, it is losing out to larger chains which focus exclusively to off-premise dining.
“Another pizza company has taken over the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” says the specialist.
But for the couple it is worth it to get their date night brought to their home.
“We definitely eat at home now rather than we eat out,” says one of the diners, matching recent statistics that show a drop in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in customers compared to last summer.
Moreover, a further alternative to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, senior partner at a leading firm, notes that not only have grocery stores been providing premium ready-to-bake pizzas for a long time – some are even promoting countertop ovens.
“Evolving preferences are also having an impact in the popularity of quick-service brands,” states Mr. Hawkley.
The growing trend of high protein diets has increased sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.
Since people dine out not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than premium.
The rise of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in a regional area says: “People haven’t fallen out of love with pizza – they just want improved value.”
Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
From the perspective of Pizzarova in Bristol, the founder says the pizza market is broadening but Pizza Hut has not provided anything fresh.
“There are now individual slices, regional varieties, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”
He says Pizza Hut “must rebrand” as the youth don't have any fond memories or attachment to the company.
Gradually, Pizza Hut's share has been fragmented and spread to its trendier, more nimble alternatives. To maintain its costly operations, it would have to raise prices – which commentators say is challenging at a time when family finances are tightening.
The leadership of Pizza Hut's global operations said the rescue aimed “to ensure our customer service and save employment where possible”.
It was explained its first focus was to continue operating at the open outlets and off-premise points and to help employees through the change.
But with significant funds going into running its restaurants, it probably cannot to invest too much in its off-premise division because the industry is “complex and working with existing third-party platforms comes at a expense”, analysts say.
However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.