How the Nation Lost Its Taste for the Pizza Hut Chain
Once, Pizza Hut was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.
However a declining number of customers are frequenting the chain currently, and it is closing half of its British locations after being acquired following financial trouble for the second time this year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”
As grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. The same goes for its restaurants, which are being cut from over 130 to 64.
The chain, in common with competitors, has also experienced its expenses rise. Earlier this year, staffing costs increased due to rises in minimum wages and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's rates are close, notes an industry analyst.
While Pizza Hut has takeaway and deliveries through delivery platforms, it is falling behind to major competitors which specialize to off-premise dining.
“Another pizza company has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're getting a bargain, when in reality the original prices are quite high,” explains the analyst.
However for the couple it is justified to get their date night brought to their home.
“We definitely eat at home now rather than we eat out,” comments one of the diners, matching current figures that show a decline in people going to quick-service eateries.
During the summer months, informal dining venues saw a notable decrease in customers compared to last summer.
There is also another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, global lead for leisure at a leading firm, explains that not only have grocery stores been selling high-quality ready-to-bake pizzas for quite a while – some are even selling home-pizza ovens.
“Lifestyle changes are also playing a factor in the success of casual eateries,” states the analyst.
The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.
Because people dine out not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and traditional décor can feel more retro than upmarket.
The growth of premium pizza outlets” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the public's perception of what good pizza is,” notes the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns Smokey Deez based in a regional area explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
Dan says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.
According to Pizzarova in a city in southwest England, the founder says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.
“There are now slice concepts, London pizza, New Haven-style, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”
Jack says Pizza Hut “should transform” as younger people don't have any fond memories or loyalty to the company.
Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile rivals. To sustain its costly operations, it would have to raise prices – which experts say is difficult at a time when personal spending are shrinking.
A senior executive of Pizza Hut's global operations said the buyout aimed “to ensure our customer service and retain staff where possible”.
It was explained its key goal was to continue operating at the open outlets and takeaway hubs and to support colleagues through the change.
Yet with so much money going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the sector is “complex and working with existing third-party platforms comes at a price”, commentators say.
Still, experts suggest, cutting its costs by leaving competitive urban areas could be a smart move to adjust.