How the Nation Lost Interest in Its Craving for Pizza Hut
At one time, Pizza Hut was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But fewer customers are visiting the chain currently, and it is closing 50% of its UK locations after being bought out of administration for the second time this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she comments “it's not a thing anymore.”
For young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now less appealing.
“The way they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”
As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being cut from 132 to 64.
The chain, similar to other firms, has also faced its operating costs go up. Earlier this year, employee wages jumped due to higher minimum pay and an higher rate of employer social security payments.
Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's rates are similar, explains a culinary author.
Although Pizza Hut does offer off-premise options through third-party apps, it is losing out to major competitors which focus exclusively to off-premise dining.
“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the analyst.
Yet for Chris and Joanne it is justified to get their special meal delivered to their door.
“We predominantly have meals at home now rather than we eat out,” explains the female customer, reflecting latest data that show a decline in people visiting casual and fast-food restaurants.
During the summer months, quick-service eateries saw a 6% drop in customers compared to last summer.
There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, global lead for leisure at an advisory group, points out that not only have grocery stores been offering high-quality prepared pies for a long time – some are even offering pizza-making appliances.
“Evolving preferences are also contributing in the performance of fast-food chains,” states the expert.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.
As people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more retro than premium.
The “explosion of artisanal pizza places” over the last several years, for example boutique chains, has “completely altered the public's perception of what excellent pie is,” says 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, arguably, is what's resulted in Pizza Hut's struggles,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in Suffolk comments: “It's not that lost interest in pizza – they just want improved value.”
Dan says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.
According to a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.
“You now have slice concepts, London pizza, thin crust, artisan base, traditional Italian, Detroit – it's a wonderful array for a pie fan to discover.”
He says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or loyalty to the brand.
Over time, Pizza Hut's share has been fragmented and spread to its fresher, faster alternatives. To keep up its costly operations, it would have to increase costs – which experts say is tough at a time when household budgets are shrinking.
A senior executive of Pizza Hut's global operations said the buyout aimed “to ensure our dining experience and retain staff where possible”.
It was explained its first focus was to keep running at the open outlets and takeaway hubs and to support colleagues through the transition.
However with so much money going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the market is “complicated and using existing external services comes at a expense”, commentators say.
However, it's noted, cutting its costs by exiting oversaturated towns and city centres could be a effective strategy to adapt.