How the Nation Lost Its Taste for Pizza Hut
In the past, Pizza Hut was the favorite for parents and children to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
But fewer patrons are visiting the chain nowadays, and it is closing 50% of its UK restaurants after being bought out of administration for the second time this year.
“We used to go Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she says “it's fallen out of favor.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.
“The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How can they?’”
As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to operate. As have its outlets, which are being reduced from a large number to 64.
The chain, in common with competitors, has also seen its expenses rise. In April this year, staffing costs increased due to increases in the legal wage floor and an increase in employer social security payments.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.
Depending on your choices, Pizza Hut and Domino's costs are similar, notes a culinary author.
Although Pizza Hut has off-premise options through external services, it is missing out to major competitors which specialize to the delivery sector.
“The rival chain has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the analyst.
However for the couple it is justified to get their evening together brought to their home.
“We absolutely dine at home now instead of we eat out,” says Joanne, reflecting latest data that show a decline in people frequenting informal dining spots.
During the summer months, casual and fast-food restaurants saw a six percent decline in patrons compared to the year before.
Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been providing premium oven-ready pizzas for quite a while – some are even offering pizza-making appliances.
“Evolving preferences are also having an impact in the success of casual eateries,” states the expert.
The rising popularity of high protein diets has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.
Because people dine out less frequently, they may seek out 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 retro than upmarket.
The “explosion of artisanal pizza places” over the last decade and a half, such as new entrants, has “fundamentally changed the consumer view of what quality pizza is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a pizza van based in Suffolk says: “People haven’t stopped liking pizza – they just want better pizza for their money.”
He says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
At an independent chain in Bristol, the founder says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.
“You now have slice concepts, regional varieties, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to try.”
The owner says Pizza Hut “should transform” as newer generations don't have any emotional connection or loyalty to the brand.
Over time, Pizza Hut's share has been sliced up and allocated to its more modern, agile alternatives. To keep up its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are shrinking.
The leadership of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and retain staff where possible”.
The executive stated its immediate priority was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the change.
But with so much money going into running its restaurants, it may be unable to spend heavily in its off-premise division because the market is “complex and partnering with existing delivery apps comes at a cost”, commentators say.
However, it's noted, cutting its costs by leaving crowded locations could be a good way to adjust.