How the Public Lost Interest in Its Craving for Pizza Hut
Once, 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.
But fewer patrons are choosing the chain nowadays, and it is closing 50% of its British locations after being bought out of administration for the second instance this year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she comments “it's fallen out of favor.”
According to young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad bar, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”
Because grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to run. As have its restaurants, which are being cut from 132 to 64.
The chain, like many others, has also seen its expenses increase. Earlier this year, employee wages jumped due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's rates are comparable, notes an industry analyst.
Although Pizza Hut has off-premise options through third-party apps, it is losing out to major competitors which specialize to the delivery sector.
“Domino's has succeeded in leading the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” explains the expert.
Yet for Chris and Joanne it is worth it to get their evening together delivered to their door.
“We absolutely dine at home now rather than we eat out,” comments the female customer, reflecting latest data that show a drop in people frequenting casual and fast-food restaurants.
In the warmer season, quick-service eateries saw a 6% drop in patrons compared to the previous year.
Moreover, another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.
An industry leader, senior partner at a major consultancy, points out that not only have supermarkets been offering high-quality ready-to-bake pizzas for years – some are even promoting countertop ovens.
“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” comments the expert.
The rising popularity of low-carb regimens has boosted sales at chicken shops, while reducing sales of dough-based meals, he continues.
Since people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than premium.
The growth of premium pizza outlets” over the last decade and a half, including boutique chains, has “completely altered the general opinion of what good pizza is,” says the food expert.
“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a regional area says: “It's not that stopped liking pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything fresh.
“There are now individual slices, artisanal styles, thin crust, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to try.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or attachment to the brand.
Gradually, Pizza Hut's market has been sliced up and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when family finances are tightening.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our dining experience and retain staff where possible”.
It was explained its key goal was to maintain service at the surviving locations and takeaway hubs and to help employees through the change.
Yet with significant funds going into running its restaurants, it may be unable to invest too much in its off-premise division because the industry is “complex and partnering with existing external services comes at a expense”, experts say.
But, he adds, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to adjust.