How the Nation Lost Interest in Its Appetite for Pizza Hut
Once, the popular pizza chain was the favorite for parents and children to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
However not as many diners are frequenting the brand currently, and it is reducing 50% of its UK outlets after being bought out of administration for the second instance this year.
I remember going Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's no longer popular.”
According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have lower standards... They offer so much food and you're like ‘How?’”
Since ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its locations, which are being cut from 132 to just over 60.
The business, similar to other firms, has also faced its costs go up. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise in employer social security payments.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
According to your choices, Pizza Hut and Domino's prices are similar, explains a culinary author.
Although Pizza Hut does offer off-premise options through external services, it is falling behind to major competitors which specialize to this market.
“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make consumers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” says the expert.
However for the couple it is worth it to get their special meal delivered to their door.
“We definitely eat at home now more than we eat out,” says one of the diners, matching recent statistics that show a decrease in people going to informal dining spots.
In the warmer season, informal dining venues saw a notable decrease in patrons compared to last summer.
There is also another rival to pizza from eateries: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have grocery stores been offering premium ready-to-bake pizzas for years – some are even selling home-pizza ovens.
“Evolving preferences are also playing a factor in the performance of quick-service brands,” says the analyst.
The rising popularity of low-carb regimens has boosted sales at poultry outlets, while reducing sales of dough-based meals, he continues.
As people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more retro than premium.
The rise of premium pizza outlets” over the last several years, for example boutique chains, has “fundamentally changed the public's perception of what good pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a pizza van based in a county in England says: “It's not that stopped liking pizza – they just want improved value.”
Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.
At a small pizza brand in a UK location, the founder says the pizza market is diversifying but Pizza Hut has not provided anything innovative.
“Currently available are by-the-slice options, regional varieties, New Haven-style, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pie fan to discover.”
He says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's share has been divided and spread to its more modern, agile alternatives. To keep up its high labor and location costs, it would have to charge more – which experts say is difficult at a time when personal spending are shrinking.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our customer service and save employment where possible”.
It was explained its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.
But with large sums going into maintaining its outlets, it likely can't afford to spend heavily in its takeaway operation because the industry is “complex and partnering with existing third-party platforms comes at a expense”, commentators say.
However, it's noted, lowering overhead by leaving competitive urban areas could be a effective strategy to evolve.