How the Country Lost Interest in Its Taste for the Pizza Hut Chain
At one time, the popular pizza chain was the go-to for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.
Yet fewer customers are visiting the chain these days, and it is reducing a significant portion of its British restaurants after being bought out of administration for the second time this year.
“We used to go Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's not a thing anymore.”
In the view of young customer Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.
“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have lower standards... They provide so much food and you're like ‘How can they?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its restaurants, which are being reduced from over 130 to a smaller figure.
The company, like many others, has also faced its operating costs rise. This spring, employee wages rose due to rises in minimum wages and an rise in employer taxes.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
According to your order, Pizza Hut and Domino's prices are similar, notes an industry analyst.
Even though Pizza Hut provides takeaway and deliveries through external services, it is falling behind to big rivals which specialize to off-premise dining.
“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the expert.
Yet for Chris and Joanne it is worth it to get their date night delivered to their door.
“We absolutely dine at home now more than we eat out,” says Joanne, matching current figures that show a decrease in people frequenting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to the previous year.
Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.
An industry leader, senior partner at a leading firm, points out that not only have supermarkets been selling good-standard oven-ready pizzas for quite a while – some are even promoting home-pizza ovens.
“Lifestyle changes are also contributing in the popularity of fast-food chains,” comments the expert.
The rising popularity of low-carb regimens has increased sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.
As people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more retro than upmarket.
The rise of high-quality pizzerias” over the last several years, including new entrants, has “completely altered the consumer view of what excellent pie is,” says the food expert.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates Smokey Deez based in a county in England says: “People haven’t stopped liking pizza – they just want improved value.”
Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.
At a small pizza brand in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything fresh.
“Currently available are by-the-slice options, regional varieties, new haven, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the brand.
Gradually, Pizza Hut's market has been fragmented and allocated to its more modern, agile competitors. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are tightening.
A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and protect jobs where possible”.
It was explained its first focus was to keep running at the open outlets and off-premise points and to assist staff through the restructure.
Yet with significant funds going into running its restaurants, it may be unable to invest too much in its delivery service because the industry is “complex and working with existing third-party platforms comes at a price”, analysts say.
But, he adds, reducing expenses by exiting crowded locations could be a good way to adapt.