Why the Nation Lost Interest in Its Taste for Pizza Hut
Once, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
Yet fewer patrons are frequenting the brand currently, and it is closing half of its British locations after being rescued from insolvency for the second time this year.
It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she states “it's not a thing anymore.”
For 23-year-old Martina, the very elements 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 reduced quality... They offer so much food and you're like ‘How can they?’”
Since ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its locations, which are being reduced from 132 to a smaller figure.
The business, similar to other firms, has also faced its costs increase. In April this year, staffing costs rose due to higher minimum pay and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's costs are similar, explains a food expert.
Although Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to big rivals which focus exclusively to the delivery sector.
“The rival chain has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the specialist.
However for the couple it is acceptable to get their date night delivered to their door.
“We definitely eat at home now instead of we eat out,” comments the female customer, matching current figures that show a drop in people visiting quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a six percent decline in patrons compared to the year before.
There is also a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.
An industry leader, senior partner at a leading firm, notes that not only have supermarkets been offering good-standard ready-to-bake pizzas for years – some are even selling countertop ovens.
“Shifts in habits are also playing a factor in the success of fast-food chains,” says the expert.
The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while affecting sales of dough-based meals, he adds.
As people go out to eat more rarely, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than luxurious.
The “explosion of high-quality pizzerias” over the last decade and a half, including new entrants, has “completely altered the consumer view of what quality pizza is,” notes the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high 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 large brand when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a small business based in a regional area comments: “People haven’t lost interest in pizza – they just want improved value.”
The owner says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
According to an independent chain in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything innovative.
“Currently available are slice concepts, regional varieties, New Haven-style, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or loyalty to the brand.
Over time, Pizza Hut's market has been sliced up and distributed to its fresher, faster alternatives. To keep up its costly operations, it would have to charge more – which commentators say is difficult at a time when family finances are decreasing.
The leadership of Pizza Hut's overseas branches said the rescue aimed “to safeguard our guest experience and retain staff where possible”.
The executive stated its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.
Yet with so much money going into operating its locations, it probably cannot to invest too much in its takeaway operation because the market is “difficult and using existing third-party platforms comes at a expense”, analysts say.
However, it's noted, cutting its costs by withdrawing from crowded locations could be a effective strategy to evolve.