Why the Nation Turned Away from Its Taste for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for groups and loved ones to enjoy its unlimited dining experience, unlimited salad bar, and make-your-own dessert.
However a declining number of patrons are visiting the brand these days, and it is closing 50% of its UK outlets after being bought out of administration for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she says “it's not a thing anymore.”
For young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now outdated.
“The way they do their buffet and their salad bar, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”
As grocery costs have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its outlets, which are being cut from 132 to a smaller figure.
The chain, in common with competitors, has also faced its expenses rise. In April this year, employee wages jumped due to rises in minimum wages and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.
Depending on your choices, Pizza Hut and Domino's prices are close, explains a culinary author.
While Pizza Hut has takeaway and deliveries through external services, it is falling behind to larger chains which focus exclusively to off-premise dining.
“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make customers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
However for these customers it is worth it to get their special meal delivered to their door.
“We absolutely dine at home now rather than we eat out,” comments the female customer, echoing latest data that show a decline in people visiting quick-service eateries.
In the warmer season, informal dining venues saw a 6% drop in diners compared to last summer.
There is also another rival to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, global lead for leisure at an advisory group, explains that not only have grocery stores been offering premium prepared pies for a long time – some are even offering home-pizza ovens.
“Evolving preferences are also playing a factor in the popularity of fast-food chains,” comments the analyst.
The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of dough-based meals, he adds.
As people visit restaurants not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than upmarket.
The growth of premium pizza outlets” over the last decade and a half, such as popular brands, has “completely altered the consumer view of what excellent pie is,” notes the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a pizza van based in Suffolk explains: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with evolving tastes.
According to an independent chain in a UK location, the founder says the industry is broadening but Pizza Hut has failed to offer anything fresh.
“There are now by-the-slice options, regional varieties, new haven, fermented dough, traditional Italian, rectangular – it's a delightful challenge for a pie fan to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the chain.
Over time, Pizza Hut's share has been divided and allocated to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when household budgets are shrinking.
The leadership of Pizza Hut's overseas branches said the rescue aimed “to protect our customer service and protect jobs where possible”.
He said its immediate priority was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the transition.
However with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its delivery service because the market is “complex and partnering with existing third-party platforms comes at a price”, analysts say.
But, he adds, lowering overhead by withdrawing from crowded locations could be a good way to adapt.