How the Country Turned Away from Its Craving for the Pizza Hut Chain
Once, Pizza Hut was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But fewer diners are choosing the chain nowadays, and it is reducing half of its British outlets after being acquired following financial trouble for the second instance this year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”
In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How?’”
Because grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its restaurants, which are being sliced from a large number to just over 60.
The business, like many others, has also faced its costs rise. In April this year, employee wages jumped due to higher minimum pay and an increase in employer national insurance contributions.
Two diners mention they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's rates are comparable, explains a culinary author.
Even though Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to larger chains which solely cater to the delivery sector.
“Domino's has succeeded in leading the delivery market thanks to intensive advertising and constantly running deals that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the analyst.
However for Chris and Joanne it is worth it to get their date night sent directly.
“We absolutely dine at home now rather than we eat out,” comments one of the diners, reflecting current figures that show a decline in people frequenting quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in customers compared to the previous year.
Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, global lead for leisure at a leading firm, notes that not only have grocery stores been providing high-quality prepared pies for years – some are even offering home-pizza ovens.
“Evolving preferences are also contributing in the success of quick-service brands,” states the expert.
The growing trend of high protein diets has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.
Since people dine out not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.
The growth of premium pizza outlets” over the last several years, including boutique chains, has “dramatically shifted the consumer view of what quality pizza is,” notes the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in a regional area says: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.
At Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is expanding but Pizza Hut has not provided anything innovative.
“There are now slice concepts, regional varieties, new haven, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pie fan to try.”
Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or attachment to the brand.
In recent years, Pizza Hut's share has been divided and distributed to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when family finances are tightening.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to safeguard our customer service and protect jobs where possible”.
It was explained its key goal was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.
However with so much money going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the sector is “complicated and using existing delivery apps comes at a cost”, analysts say.
Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a effective strategy to adjust.