How the Nation Lost Its Appetite for Pizza Hut
At one time, the popular pizza chain was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
Yet fewer customers are choosing the chain currently, and it is reducing 50% of its UK outlets after being acquired following financial trouble for the second instance this year.
“We used to go Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's fallen out of favor.”
For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now less appealing.
“How they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”
Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its restaurants, which are being sliced from 132 to a smaller figure.
The company, in common with competitors, has also faced its costs increase. This spring, employee wages increased due to higher minimum pay and an rise in employer taxes.
Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are close, notes a culinary author.
Although Pizza Hut provides pickup and delivery through external services, it is falling behind to larger chains which focus exclusively to off-premise dining.
“The rival chain has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the expert.
But for the couple it is justified to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” comments Joanne, echoing latest data that show a drop in people frequenting quick-service eateries.
During the summer months, quick-service eateries saw a six percent decline in patrons compared to last summer.
There is also another rival to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, senior partner at a leading firm, notes that not only have grocery stores been offering high-quality oven-ready pizzas for years – some are even promoting pizza-making appliances.
“Evolving preferences are also contributing in the performance of casual eateries,” states Mr. Hawkley.
The growing trend of low-carb regimens has increased sales at poultry outlets, while affecting sales of dough-based meals, he continues.
As people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than premium.
The rise of artisanal pizza places” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what good pizza is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she comments.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who operates Smokey Deez based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want improved value.”
Dan says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
At an independent chain in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.
“Currently available are by-the-slice options, artisanal styles, thin crust, artisan base, wood-fired, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or loyalty to the brand.
Gradually, Pizza Hut's customer base has been divided and distributed to its fresher, faster competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when family finances are shrinking.
The managing director of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and save employment where possible”.
He said its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.
Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.
However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to evolve.