How the Nation Turned Away from Its Craving for Pizza Hut
In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But not as many patrons are visiting the brand currently, and it is reducing half of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.
It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's no longer popular.”
According to 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How can they?’”
Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its restaurants, which are being sliced from over 130 to a smaller figure.
The chain, similar to other firms, has also faced its costs increase. Earlier this year, staffing costs increased due to rises in minimum wages and an higher rate of employer national insurance contributions.
A couple in their thirties and twenties say they frequently dined 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”.
Based on your choices, Pizza Hut and Domino's prices are comparable, explains a food expert.
Although Pizza Hut does offer takeaway and deliveries through delivery platforms, it is losing out to big rivals which focus exclusively to off-premise dining.
“Another pizza company has succeeded in leading the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” says the analyst.
Yet for these customers it is justified to get their evening together sent directly.
“We absolutely dine at home now instead of we eat out,” explains Joanne, echoing latest data that show a decline in people visiting quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a six percent decline in customers compared to the year before.
Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.
A hospitality expert, senior partner at an advisory group, points out that not only have grocery stores been selling good-standard ready-to-bake pizzas for a long time – some are even selling pizza-making appliances.
“Shifts in habits are also having an impact in the success of fast-food chains,” states Mr. Hawkley.
The rising popularity of high protein diets has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.
Since people go out to eat more rarely, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than upmarket.
The “explosion of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the consumer view of what excellent pie is,” explains the industry commentator.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she comments.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who operates a pizza van based in a regional area explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.
From the perspective of a small pizza brand in Bristol, the proprietor says the industry is broadening but Pizza Hut has neglected to introduce anything fresh.
“There are now by-the-slice options, regional varieties, New Haven-style, artisan base, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the company.
Over time, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the buyout aimed “to protect our dining experience and retain staff where possible”.
The executive stated its immediate priority was to continue operating at the open outlets and takeaway hubs and to help employees through the transition.
Yet with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the market is “difficult and using existing external services comes at a expense”, commentators say.
However, it's noted, reducing expenses by exiting competitive urban areas could be a good way to evolve.