Why the Country Lost Its Taste for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.
But fewer patrons are visiting the brand currently, and it is reducing 50% of its UK locations after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she says “it's no longer popular.”
According to 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 not-so-hot.
“How they do their buffet and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”
Since food prices have soared, Pizza Hut's unlimited dining format has become very expensive to run. As have its restaurants, which are being reduced from a large number to just over 60.
The company, similar to other firms, has also seen its operating costs increase. In April this year, staffing costs jumped due to higher minimum pay and an increase in employer national insurance contributions.
Two diners mention they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.
Based on your order, Pizza Hut and Domino's costs are comparable, explains a culinary author.
Even though Pizza Hut does offer takeaway and deliveries through external services, it is missing out to big rivals 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 shoppers feel like they're saving money, when in reality the base costs are quite high,” explains the analyst.
But for the couple it is justified to get their evening together sent directly.
“We predominantly have meals at home now instead of we eat out,” says the female customer, matching latest data that show a drop in people visiting quick-service eateries.
Over the summer, quick-service eateries saw a notable decrease in patrons compared to the year before.
There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.
A hospitality expert, global lead for leisure at an advisory group, points out that not only have grocery stores been offering high-quality ready-to-bake pizzas for a long time – some are even promoting pizza-making appliances.
“Lifestyle changes are also contributing in the success of fast-food chains,” says the expert.
The increased interest of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.
Because people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.
The growth of high-quality pizzerias” over the last several years, including new entrants, has “fundamentally changed the general opinion of what good pizza is,” says the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a small business based in Suffolk says: “It's not that lost interest in pizza – they just want better pizza for their money.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.
“There are now individual slices, London pizza, thin crust, artisan base, traditional Italian, rectangular – it's a delightful challenge for a pizza-loving consumer to discover.”
The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the company.
In recent years, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To maintain its costly operations, it would have to increase costs – which commentators say is tough at a time when personal spending are tightening.
The leadership of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
It was explained its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the transition.
However with so much money going into maintaining its outlets, it may be unable to invest too much in its takeaway operation because the market is “complicated and using existing external services comes at a price”, experts say.
Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.