Why the Country Turned Away from Its Craving for Pizza Hut
Once, Pizza Hut was the go-to for families and friends to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.
Yet not as many diners are frequenting the restaurant these days, and it is reducing half of its British locations after being bought out of administration for the second instance this calendar year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she comments “it's no longer popular.”
In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.
“The manner in which they do their buffet and their salad station, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”
Since food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to run. Similarly, its outlets, which are being cut from over 130 to a smaller figure.
The chain, in common with competitors, has also seen its expenses increase. This spring, employee wages rose due to rises in minimum wages and an increase in employer taxes.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “not good value”.
Based on your choices, Pizza Hut and Domino's costs are similar, explains a food expert.
While Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to larger chains which specialize to this market.
“Domino's has taken over the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” explains the specialist.
Yet for these customers it is justified to get their evening together sent directly.
“We definitely eat at home now rather than we eat out,” comments Joanne, echoing current figures that show a decline in people going to casual and fast-food restaurants.
Over the summer, informal dining venues saw a notable decrease in diners compared to the year before.
Moreover, one more competitor to ordered-in pies: the supermarket pizza.
Will Hawkley, senior partner at a leading firm, explains that not only have grocery stores been selling good-standard oven-ready pizzas for a long time – some are even offering pizza-making appliances.
“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” comments the expert.
The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he adds.
Since people go out to eat less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than upmarket.
The “explosion of premium pizza outlets” over the last several years, such as new entrants, has “dramatically shifted the public's perception of what excellent pie is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs a pizza van based in a county in England explains: “People haven’t lost interest in pizza – they just want better pizza for their money.”
He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything innovative.
“You now have individual slices, London pizza, thin crust, artisan base, traditional Italian, deep-dish – it's a wonderful array for a pie fan to try.”
Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or loyalty to the brand.
Over time, Pizza Hut's customer base has been sliced up and allocated to its more modern, agile rivals. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when personal spending are shrinking.
The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
It was explained its first focus was to keep running at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.
Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its delivery service because the market is “complex and partnering with existing delivery apps comes at a price”, analysts say.
But, he adds, cutting its costs by leaving competitive urban areas could be a good way to evolve.