How the Country Turned Away from Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the top choice for parents and children to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
Yet not as many customers are choosing the chain these days, and it is shutting down a significant portion of its British outlets after being rescued from insolvency for the second occasion this year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she states “it's fallen out of favor.”
In the view of young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.
“The way they do their buffet and their salad bar, it seems as if they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How?’”
Because food prices have soared, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its locations, which are being sliced from 132 to 64.
The chain, in common with competitors, has also seen its expenses increase. Earlier this year, staffing costs increased due to rises in minimum wages and an rise in employer national insurance contributions.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
According to your choices, Pizza Hut and Domino's costs are comparable, notes a food expert.
While Pizza Hut has pickup and delivery through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.
“The rival chain has taken over the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” says the analyst.
However for Chris and Joanne it is justified to get their evening together brought to their home.
“We definitely eat at home now more than we eat out,” explains the female customer, reflecting current figures that show a drop in people visiting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to the year before.
There is also another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, senior partner at an advisory group, points out that not only have supermarkets been offering premium prepared pies for years – some are even offering countertop ovens.
“Shifts in habits are also playing a factor in the popularity of fast-food chains,” says the expert.
The rising popularity of low-carb regimens has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.
Because people visit restaurants more rarely, they may look for a more high-quality meal, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than upmarket.
The rise of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “completely altered the general opinion of what quality pizza is,” notes the culinary analyst.
“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 decline,” she says.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds 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 a regional area comments: “People haven’t stopped liking pizza – they just want better pizza for their money.”
Dan says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with new customer habits.
According to a small pizza brand in Bristol, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.
“Currently available are individual slices, artisanal styles, thin crust, sourdough, traditional Italian, rectangular – it's a wonderful array for a pie fan to try.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the chain.
Gradually, Pizza Hut's customer base has been sliced up and spread to its more modern, agile competitors. To maintain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when family finances are shrinking.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to protect our guest experience and protect jobs where possible”.
He said its immediate priority was to keep running at the surviving locations and off-premise points and to help employees through the change.
But with large sums going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the market is “complex and partnering with existing delivery apps comes at a cost”, analysts say.
However, it's noted, reducing expenses by leaving competitive urban areas could be a effective strategy to evolve.