Why the Nation Lost Interest in Its Craving for Pizza Hut
In the past, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.
But not as many diners are frequenting the brand nowadays, and it is closing half of its UK locations after being bought out of administration for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she comments “it's not a thing anymore.”
In the view of young customer Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now less appealing.
“The manner in which they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How?’”
As grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to run. As have its locations, which are being cut from 132 to a smaller figure.
The company, similar to other firms, has also faced its operating costs rise. Earlier this year, staffing costs rose due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
Two diners explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
According to your order, Pizza Hut and Domino's rates are close, explains a culinary author.
Although Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to larger chains which focus exclusively to this market.
“The rival chain has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are quite high,” says the analyst.
Yet for Chris and Joanne it is justified to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” explains one of the diners, matching current figures that show a decline in people frequenting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to last summer.
There is also a further alternative to pizza from eateries: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been providing high-quality ready-to-bake pizzas for quite a while – some are even offering countertop ovens.
“Evolving preferences are also contributing in the performance of quick-service brands,” says Mr. Hawkley.
The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.
Since people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more retro than luxurious.
The rise of high-quality pizzerias” over the last decade and a half, such as new entrants, has “dramatically shifted the consumer view of what good pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she says.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a small business based in a regional area explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
He says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
From the perspective of a small pizza brand in Bristol, the founder says the industry is diversifying but Pizza Hut has not provided anything new.
“You now have by-the-slice options, London pizza, New Haven-style, sourdough, traditional Italian, Detroit – it's a wonderful array for a pie fan to explore.”
The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or allegiance to the brand.
In recent years, Pizza Hut's market has been fragmented and distributed to its fresher, faster competitors. To maintain its costly operations, it would have to increase costs – which commentators say is challenging at a time when personal spending are tightening.
A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our guest experience and save employment where possible”.
The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the transition.
But with so much money going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the market is “complicated and partnering with existing third-party platforms comes at a price”, experts say.
But, he adds, lowering overhead by withdrawing from competitive urban areas could be a smart move to adapt.