Why the Nation Lost Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
Yet a declining number of diners are visiting the chain these days, and it is reducing 50% of its UK locations after being rescued from insolvency for the second time this year.
“We used to go Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad bar, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”
Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become quite costly to operate. Similarly, its locations, which are being cut from a large number to just over 60.
The business, similar to other firms, has also seen its operating costs rise. Earlier this year, employee wages rose due to higher minimum pay and an higher rate of employer taxes.
Two diners say they would often visit at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.
According to your selection, Pizza Hut and Domino's costs are close, notes an industry analyst.
Although Pizza Hut does offer pickup and delivery through external services, it is losing out to major competitors which solely cater to the delivery sector.
“Another pizza company has taken over the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” explains the specialist.
However for Chris and Joanne it is worth it to get their special meal sent directly.
“We predominantly have meals at home now more than we eat out,” comments one of the diners, matching recent statistics that show a drop in people going to casual and fast-food restaurants.
In the warmer season, informal dining venues saw a 6% drop in customers compared to the year before.
Moreover, another rival to restaurant and takeaway pizzas: the supermarket pizza.
A hospitality expert, senior partner at a leading firm, notes that not only have supermarkets been selling premium ready-to-bake pizzas for a long time – some are even promoting countertop ovens.
“Evolving preferences are also contributing in the popularity of casual eateries,” comments the analyst.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while affecting sales of dough-based meals, he continues.
Since people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than premium.
The “explosion of premium pizza outlets” over the last decade and a half, for example boutique chains, has “completely altered the general opinion of what excellent pie is,” explains the culinary analyst.
“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she states.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in a regional area says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
According to an independent chain in a UK location, owner Jack Lander says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.
“Currently available are by-the-slice options, artisanal styles, thin crust, fermented dough, traditional Italian, Detroit – it's a wonderful array for a pie fan to discover.”
He says Pizza Hut “must rebrand” as the youth don't have any fond memories or attachment to the brand.
Over time, Pizza Hut's customer base has been sliced up and distributed to its fresher, faster rivals. To maintain its costly operations, it would have to raise prices – which commentators say is challenging at a time when family finances are shrinking.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our guest experience and save employment where possible”.
He said its immediate priority was to continue operating at the surviving locations and takeaway hubs and to help employees through the change.
However with large sums going into maintaining its outlets, it likely can't afford to invest too much in its takeaway operation because the industry is “complicated and partnering with existing external services comes at a cost”, commentators say.
Still, experts suggest, lowering overhead by leaving oversaturated towns and city centres could be a good way to adapt.