Why the Country Lost Its Taste for Pizza Hut
Once, the popular pizza chain was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
But fewer patrons are choosing the brand these days, and it is shutting down 50% of its British outlets after being acquired following financial trouble for the second instance this year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's no longer popular.”
In the view of 23-year-old Martina, 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 not-so-hot.
“How they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How can they?’”
Since food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. Similarly, its outlets, which are being sliced from a large number to just over 60.
The chain, like many others, has also experienced its costs go up. In April this year, staffing costs increased due to rises in minimum wages and an higher rate of employer social security payments.
Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.
According to your choices, Pizza Hut and Domino's rates are similar, notes a food expert.
Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is losing out to big rivals which solely cater to off-premise dining.
“Another pizza company has taken over the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” says the analyst.
But for the couple it is acceptable to get their evening together brought to their home.
“We definitely eat at home now more than we eat out,” explains one of the diners, reflecting latest data that show a decrease in people frequenting casual and fast-food restaurants.
Over the summer, informal dining venues saw a notable decrease in customers compared to last summer.
Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.
An industry leader, global lead for leisure at a major consultancy, points out that not only have grocery stores been offering premium oven-ready pizzas for a long time – some are even offering countertop ovens.
“Shifts in habits are also contributing in the popularity of quick-service brands,” states the expert.
The increased interest of high protein diets has increased sales at chicken shops, while hitting sales of carb-heavy pizza, he notes.
Since people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.
The rise of artisanal pizza places” over the last decade and a half, for example new entrants, has “dramatically shifted the general opinion of what excellent pie is,” explains the culinary analyst.
“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who operates a small business based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want improved value.”
Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
At an independent chain in a UK location, the founder says the pizza market is broadening but Pizza Hut has neglected to introduce anything innovative.
“You now have individual slices, London pizza, new haven, fermented dough, traditional Italian, deep-dish – it's a wonderful array for a pie fan to discover.”
Jack says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the chain.
In recent years, Pizza Hut's share has been divided and distributed to its fresher, faster competitors. To keep up its high labor and location costs, it would have to increase costs – which experts say is difficult at a time when household budgets are shrinking.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and retain staff where possible”.
It was explained its key goal was to continue operating at the open outlets and off-premise points and to support colleagues through the restructure.
However with significant funds going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the sector is “complicated and partnering with existing delivery apps comes at a cost”, experts say.
However, it's noted, lowering overhead by leaving crowded locations could be a good way to adapt.