How the Nation Turned Away from Its Appetite for Pizza Hut
In the past, Pizza Hut was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
But a declining number of diners are choosing the brand currently, and it is closing half of its UK restaurants after being rescued from insolvency for the second instance this year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she comments “it's fallen out of favor.”
For young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now less appealing.
“How they do their all-you-can-eat and their salad bar, it seems as if they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”
As ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its locations, which are being sliced from a large number to 64.
The business, like many others, has also experienced its costs go up. In April this year, staffing costs jumped due to higher minimum pay and an increase in employer national insurance contributions.
Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's rates are close, notes an industry analyst.
Although Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to larger chains which solely cater to off-premise dining.
“Another pizza company has taken over the off-premise pizza industry thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the specialist.
Yet for these customers it is worth it to get their evening together brought to their home.
“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 going to informal dining spots.
During the summer months, quick-service eateries saw a notable decrease in patrons compared to the year before.
Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, global lead for leisure at a major consultancy, notes that not only have retailers been selling high-quality oven-ready pizzas for years – some are even offering pizza-making appliances.
“Lifestyle changes are also having an impact in the success of casual eateries,” comments Mr. Hawkley.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.
Because people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more dated than premium.
The “explosion of high-quality pizzerias” over the last several years, for example popular brands, has “dramatically shifted the general opinion of what excellent pie is,” explains the food expert.
“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she says.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who owns Smokey Deez based in a county in England explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with new customer habits.
From the perspective of an independent chain in Bristol, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything fresh.
“Currently available are slice concepts, regional varieties, New Haven-style, artisan base, traditional Italian, Detroit – it's a delightful challenge for a pie fan to explore.”
He says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or allegiance to the chain.
Over time, Pizza Hut's customer base has been sliced up and distributed to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when household budgets are shrinking.
The leadership of Pizza Hut's global operations said the buyout aimed “to protect our dining experience and retain staff where possible”.
It was explained its immediate priority was to keep running at the surviving locations and delivery sites and to help employees through the transition.
But with significant funds going into maintaining its outlets, it probably cannot to spend heavily in its delivery service because the industry is “difficult and partnering with existing external services comes at a price”, commentators say.
But, he adds, cutting its costs by leaving crowded locations could be a good way to evolve.