How the Country Lost Interest in Its Appetite for the Pizza Hut Chain
Once, Pizza Hut was the favorite for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.
Yet not as many customers are choosing the chain currently, and it is shutting down a significant portion of its UK locations after being rescued from insolvency for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she states “it's fallen out of favor.”
According to 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.
“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”
Since grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. Similarly, its restaurants, which are being sliced from over 130 to a smaller figure.
The chain, in common with competitors, has also faced its costs go up. In April this year, employee wages jumped due to higher minimum pay and an rise in employer national insurance contributions.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's prices are comparable, says a culinary author.
Although Pizza Hut has pickup and delivery through delivery platforms, it is missing out to larger chains which solely cater to this market.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are quite high,” says the expert.
But for these customers it is justified to get their date night delivered to their door.
“We definitely eat at home now more than we eat out,” explains the female customer, echoing current figures that show a decrease in people visiting casual and fast-food restaurants.
Over the summer, informal dining venues saw a six percent decline in patrons compared to the year before.
Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been providing premium ready-to-bake pizzas for quite a while – some are even offering countertop ovens.
“Shifts in habits are also playing a factor in the success of quick-service brands,” comments the expert.
The increased interest of low-carb regimens has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.
Because people dine out less frequently, they may seek out a more high-quality meal, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than premium.
The growth of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “completely altered the consumer view of what good pizza is,” says the industry commentator.
“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for under a tenner 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 comments: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with changing preferences.
From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the pizza market is broadening but Pizza Hut has not provided anything new.
“You now have by-the-slice options, artisanal styles, new haven, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”
He says Pizza Hut “should transform” as newer generations don't have any emotional connection or attachment to the chain.
Gradually, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when household budgets are tightening.
The managing director of Pizza Hut's global operations said the buyout aimed “to safeguard our customer service and protect jobs where possible”.
The executive stated its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.
But with so much money going into operating its locations, it likely can't afford to spend heavily in its delivery service because the industry is “complicated and partnering with existing delivery apps comes at a cost”, experts say.
Still, experts suggest, reducing expenses by exiting crowded locations could be a effective strategy to evolve.