Why the Country Lost Its Taste for Pizza Hut
At one time, Pizza Hut was the favorite for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
However a declining number of customers are visiting the chain these days, and it is shutting down half of its British outlets after being rescued from insolvency for the second instance this year.
“We used to go 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, in her mid-twenties, she says “it's fallen out of favor.”
According to a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.
“The way 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?’”
As ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to operate. As have its restaurants, which are being sliced from over 130 to just over 60.
The company, like many others, has also seen its costs rise. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an higher rate of employer social security payments.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's rates are comparable, says a food expert.
Although Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to larger chains which specialize to off-premise dining.
“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing 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.
But for Chris and Joanne it is acceptable to get their evening together delivered to their door.
“We predominantly have meals at home now rather than we eat out,” explains Joanne, matching current figures that show a decline in people frequenting informal dining spots.
In the warmer season, quick-service eateries saw a six percent decline in patrons compared to the previous year.
There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.
Will Hawkley, senior partner at a major consultancy, points out that not only have supermarkets been providing premium oven-ready pizzas for quite a while – some are even selling pizza-making appliances.
“Lifestyle changes are also playing a factor in the success of quick-service brands,” states the analyst.
The growing trend of protein-rich eating plans has boosted sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.
Since people dine out less frequently, they may look for a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.
The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “dramatically shifted the consumer view of what excellent pie is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she comments.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a small business based in a regional area explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
Dan says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.
At an independent chain in Bristol, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything fresh.
“Currently available are by-the-slice options, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pie fan to try.”
Jack says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or loyalty to the brand.
In recent years, Pizza Hut's market has been sliced up and allocated to its more modern, agile rivals. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when household budgets are tightening.
The leadership of Pizza Hut's global operations said the acquisition aimed “to ensure our guest experience and save employment where possible”.
The executive stated its first focus was to maintain service at the open outlets and takeaway hubs and to assist staff through the change.
But with so much money going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the market is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.
But, he adds, cutting its costs by exiting oversaturated towns and city centres could be a effective strategy to evolve.