How the Public Turned Away from Its Craving for Pizza Hut
At one time, the popular pizza chain was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
However not as many patrons are visiting the chain these days, and it is closing 50% of its British restaurants after being bought out of administration for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she states “it's no longer popular.”
According to a diner in her twenties, some of the very things Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.
“How they do their buffet and their salad bar, it seems as if they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How?’”
As ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its outlets, which are being sliced from over 130 to a smaller figure.
The company, similar to other firms, has also faced its expenses increase. Earlier this year, employee wages rose due to increases in the legal wage floor and an higher rate of employer taxes.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
Based on your choices, Pizza Hut and Domino's costs are similar, explains a food expert.
While Pizza Hut does offer pickup and delivery through third-party apps, it is losing out to big rivals which focus exclusively to off-premise dining.
“Another pizza company has taken over the delivery market thanks to intensive advertising and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the expert.
Yet for these customers it is acceptable to get their special meal brought to their home.
“We definitely eat at home now rather than we eat out,” says Joanne, matching current figures that show a drop in people frequenting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in customers compared to the year before.
Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.
An industry leader, senior partner at a leading firm, points out that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also having an impact in the performance of fast-food chains,” states the expert.
The rising popularity of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.
Because people dine out not as often, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than upmarket.
The rise of premium pizza outlets” over the last decade and a half, including popular brands, has “fundamentally changed the general opinion of what excellent pie is,” notes the food expert.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a pizza van based in a regional area says: “It's not that stopped liking pizza – they just want improved value.”
He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
According to an independent chain in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.
“You now have by-the-slice options, artisanal styles, new haven, sourdough, Neapolitan, deep-dish – it's a delightful challenge for a pizza-loving consumer to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or attachment to the brand.
Gradually, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble competitors. To sustain its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when family finances are decreasing.
The leadership of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and save employment where possible”.
It was explained its immediate priority was to keep running at the open outlets and off-premise points and to assist staff through the change.
However with so much money going into operating its locations, it probably cannot to spend heavily in its off-premise division because the market is “complicated and using existing external services comes at a cost”, analysts say.
Still, experts suggest, reducing expenses by leaving competitive urban areas could be a good way to adapt.