How the Public Lost Interest in Its Taste for Pizza Hut
In the past, the popular pizza chain was the favorite for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
But a declining number of diners are choosing the brand currently, and it is closing half of its UK outlets after being rescued from insolvency for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's fallen out of favor.”
According to a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.
“The manner in which they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”
Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being sliced from 132 to 64.
The chain, in common with competitors, has also seen its expenses increase. This spring, employee wages increased due to increases in the legal wage floor and an rise in employer national insurance contributions.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.
According to your choices, Pizza Hut and Domino's costs are close, explains an industry analyst.
While Pizza Hut provides takeaway and deliveries through delivery platforms, it is losing out to larger chains which specialize to this market.
“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are quite high,” explains the specialist.
However for these customers it is acceptable to get their date night delivered to their door.
“We absolutely dine at home now rather than we eat out,” comments the female customer, echoing current figures that show a decline in people visiting informal dining spots.
In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.
Additionally, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.
Will Hawkley, senior partner at a major consultancy, notes that not only have grocery stores been providing high-quality oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Lifestyle changes are also contributing in the popularity of quick-service brands,” says Mr. Hawkley.
The growing trend of high protein diets has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he continues.
Since people dine out less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more dated than luxurious.
The growth of premium pizza outlets” over the last decade and a half, for example boutique chains, has “fundamentally changed the public's perception of what excellent pie is,” explains the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates Smokey Deez based in a regional area explains: “It's not that lost interest in pizza – they just want better pizza for their money.”
Dan says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
From the perspective of Pizzarova in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything fresh.
“Currently available are slice concepts, regional varieties, new haven, 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 emotional connection or allegiance to the company.
In recent years, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when personal spending are shrinking.
A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to protect our customer service and retain staff where possible”.
He said its immediate priority was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the restructure.
Yet with significant funds going into operating its locations, it probably cannot to spend heavily in its delivery service because the market is “complex and working with existing external services comes at a price”, analysts say.
But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a effective strategy to adjust.