How the Nation Lost Its Taste for Pizza Hut
In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.
But a declining number of patrons are frequenting the chain nowadays, and it is shutting down half of its UK outlets after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's not a thing anymore.”
For a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
As ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its locations, which are being cut from over 130 to just over 60.
The company, similar to other firms, has also seen its costs rise. In April this year, staffing costs rose due to higher minimum pay and an increase in employer social security payments.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's rates are comparable, explains an industry analyst.
While Pizza Hut has takeaway and deliveries through third-party apps, it is missing out to major competitors which solely cater to the delivery sector.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” says the expert.
However for the couple it is acceptable to get their special meal delivered to their door.
“We definitely eat at home now instead of we eat out,” comments the female customer, reflecting latest data that show a decline in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a six percent decline in diners compared to the year before.
There is also one more competitor to restaurant and takeaway pizzas: the supermarket pizza.
Will Hawkley, global lead for leisure at an advisory group, notes that not only have grocery stores been selling high-quality ready-to-bake pizzas for a long time – some are even selling pizza-making appliances.
“Lifestyle changes are also playing a factor in the success of casual eateries,” states Mr. Hawkley.
The increased interest of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.
Because people dine out less frequently, they may seek out a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than premium.
The growth of artisanal pizza places” over the last decade and a half, including boutique chains, has “completely altered the public's perception of what excellent pie is,” says the culinary analyst.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates Smokey Deez based in Suffolk says: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
According to a small pizza brand in a city in southwest England, owner Jack Lander says the pizza market is broadening but Pizza Hut has not provided anything new.
“There are now individual slices, artisanal styles, New Haven-style, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”
Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the company.
Gradually, Pizza Hut's market has been sliced up and allocated to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when household budgets are tightening.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and protect jobs where possible”.
He said its key goal was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
Yet with large sums going into maintaining its outlets, it probably cannot to allocate significant resources in its delivery service because the sector is “difficult and working with existing third-party platforms comes at a price”, commentators say.
However, it's noted, cutting its costs by exiting oversaturated towns and city centres could be a effective strategy to evolve.