Why the Nation Lost Its Craving for Pizza Hut
Once, the popular pizza chain was the go-to for families and friends to feast on its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
However fewer customers are visiting the restaurant these days, and it is closing 50% of its UK outlets after being bought out of administration for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she says “it's no longer popular.”
In the view of young customer Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now not-so-hot.
“The way they do their buffet and their salad station, it seems as if they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”
Because ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being reduced from 132 to 64.
The chain, in common with competitors, has also experienced its costs rise. Earlier this year, employee wages rose due to increases in the legal wage floor and an rise in employer social security payments.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's rates are comparable, notes a food expert.
Even though Pizza Hut does offer pickup and delivery through third-party apps, it is missing out to big rivals which solely cater to off-premise dining.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're saving money, when in reality the standard rates are quite high,” explains the specialist.
But for the couple it is worth it to get their date night sent directly.
“We predominantly have meals at home now more than we eat out,” explains the female customer, echoing recent statistics that show a drop in people visiting quick-service eateries.
In the warmer season, informal dining venues saw a six percent decline in patrons compared to last summer.
Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been selling good-standard oven-ready pizzas for years – some are even selling countertop ovens.
“Evolving preferences are also playing a factor in the performance of fast-food chains,” says the expert.
The growing trend of low-carb regimens has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.
Since people dine out more rarely, they may prefer a more high-quality meal, and Pizza Hut's retro theme with booth seating and traditional décor can feel more old-fashioned than upmarket.
The rise of premium pizza outlets” over the last decade and a half, such as popular brands, has “completely altered the consumer view of what good pizza is,” explains the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a pizza van based in a county in England says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with new customer habits.
At Pizzarova in Bristol, the proprietor says the sector is diversifying but Pizza Hut has not provided anything fresh.
“You now have by-the-slice options, regional varieties, new haven, artisan base, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the chain.
Gradually, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when household budgets are shrinking.
The managing director of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and save employment where possible”.
It was explained its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the change.
Yet with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the sector is “difficult and using existing third-party platforms comes at a expense”, analysts say.
But, he adds, cutting its costs by withdrawing from competitive urban areas could be a effective strategy to evolve.