How the Public Turned Away from Its Appetite for Pizza Hut
Once, the popular pizza chain was the top choice for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
But not as many patrons are visiting the chain currently, and it is closing a significant portion of its UK restaurants after being rescued from insolvency for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's fallen out of favor.”
According to young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now not-so-hot.
“The manner in which they do their buffet and their salad station, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How can they?’”
Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its outlets, which are being reduced from 132 to a smaller figure.
The business, in common with competitors, has also experienced its operating costs go up. Earlier this year, staffing costs jumped due to higher minimum pay and an increase in 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 Domino's and think Pizza Hut is “very overpriced”.
According to your choices, Pizza Hut and Domino's costs are similar, explains a food expert.
Even though Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to major competitors which focus exclusively to this market.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” says the expert.
However for Chris and Joanne it is worth it to get their special meal sent directly.
“We absolutely dine at home now instead of we eat out,” explains one of the diners, matching latest data that show a drop in people going to quick-service eateries.
Over the summer, quick-service eateries saw a six percent decline in diners compared to the previous year.
Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, global lead for leisure at a major consultancy, points out that not only have retailers been offering high-quality prepared pies for years – some are even selling home-pizza ovens.
“Lifestyle changes are also playing a factor in the performance of casual eateries,” states the expert.
The increased interest of low-carb regimens has increased sales at poultry outlets, while reducing sales of carb-heavy pizza, he continues.
As people go out to eat not as often, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more retro than upmarket.
The “explosion of artisanal pizza places” over the last several years, such as new entrants, has “completely altered the general opinion of what quality pizza is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a small business based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.
At an independent chain in a city in southwest England, the founder says the sector is expanding but Pizza Hut has not provided anything fresh.
“There are now individual slices, regional varieties, thin crust, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to try.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the chain.
In recent years, Pizza Hut's customer base has been sliced up and distributed to its fresher, faster alternatives. To sustain its costly operations, it would have to charge more – which industry analysts say is tough at a time when family finances are tightening.
The leadership of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our customer service and retain staff where possible”.
It was explained its first focus was to continue operating at the remaining 64 restaurants and takeaway hubs and to help employees through the change.
However with so much money going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the market is “complex and working with existing external services comes at a price”, analysts say.
But, he adds, cutting its costs by leaving crowded locations could be a good way to adapt.
