Why the Country Turned Away from Its Craving for the Pizza Hut Chain
In the past, Pizza Hut was the favorite for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.
But a declining number of patrons are choosing the chain nowadays, and it is shutting down a significant portion of its UK restaurants after being rescued from insolvency for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's not a thing anymore.”
According to a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.
“The manner in which they do their buffet and their salad bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”
Since food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its locations, which are being sliced from 132 to a smaller figure.
The business, similar to other firms, has also seen its operating costs rise. Earlier this year, staffing costs increased due to higher minimum pay and an rise in employer taxes.
A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's costs are similar, explains an industry analyst.
Although Pizza Hut has pickup and delivery through third-party apps, it is losing out to larger chains which solely cater to off-premise dining.
“Domino's has taken over the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” says the specialist.
However for Chris and Joanne it is worth it to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” comments one of the diners, matching recent statistics that show a decrease in people going to casual and fast-food restaurants.
During the summer months, quick-service eateries saw a 6% drop in patrons compared to last summer.
Moreover, a further alternative to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have grocery stores been offering good-standard ready-to-bake pizzas for a long time – some are even promoting countertop ovens.
“Shifts in habits are also playing a factor in the popularity of casual eateries,” comments the expert.
The increased interest of high protein diets has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.
Since people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than upmarket.
The growth of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “fundamentally changed 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 massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a pizza van based in a county in England explains: “It's not that fallen out of love with pizza – they just want improved value.”
He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.
According to an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.
“You now have slice concepts, London pizza, new haven, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the chain.
In recent years, Pizza Hut's share has been sliced up and spread to its trendier, more nimble competitors. To sustain its high labor and location costs, it would have to increase costs – which experts say is difficult at a time when family finances are tightening.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to ensure our dining experience and protect jobs where possible”.
He said its first focus was to keep running at the remaining 64 restaurants and delivery sites and to help employees through the transition.
But with significant funds going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the industry is “complicated and partnering with existing delivery apps comes at a cost”, commentators say.
However, it's noted, cutting its costs by exiting crowded locations could be a smart move to evolve.