Why the Nation Lost Interest in Its Appetite for the Pizza Hut Chain
In the past, Pizza Hut was the favorite for parents and children to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
Yet a declining number of patrons are frequenting the brand nowadays, and it is closing half of its British restaurants after being rescued from insolvency for the second instance this calendar year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she comments “it's not a thing anymore.”
According to young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now outdated.
“The manner in which they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How?’”
Since food prices have soared, Pizza Hut's buffet-style service has become very expensive to maintain. As have its locations, which are being reduced from over 130 to 64.
The business, like many others, has also faced its operating costs increase. This spring, staffing costs increased due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “not good value”.
According to your order, Pizza Hut and Domino's costs are similar, says an industry analyst.
Even though Pizza Hut provides pickup and delivery through third-party apps, it is missing out to big rivals which solely cater to off-premise dining.
“Another pizza company has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the expert.
However for these customers it is acceptable to get their date night brought to their home.
“We absolutely dine at home now instead of we eat out,” says Joanne, matching latest data that show a decline in people going to quick-service eateries.
During the summer months, 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 cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at an advisory group, explains that not only have retailers been providing good-standard oven-ready pizzas for quite a while – some are even promoting home-pizza ovens.
“Evolving preferences are also playing a factor in the success of fast-food chains,” states Mr. Hawkley.
The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of dough-based meals, he notes.
Since people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than upmarket.
The “explosion of high-quality pizzerias” over the last decade and a half, including new entrants, has “dramatically shifted the consumer view of what excellent pie is,” notes the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a small business based in Suffolk says: “People haven’t stopped liking pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with evolving tastes.
From the perspective of a small pizza brand in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything fresh.
“Currently available are individual slices, artisanal styles, thin crust, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pizza-loving consumer to try.”
Jack says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or attachment to the company.
Over time, Pizza Hut's market has been divided and spread to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are decreasing.
A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and save employment where possible”.
It was explained its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.
Yet with large sums going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the sector is “complex and partnering with existing delivery apps comes at a cost”, experts say.
But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a smart move to adjust.