Why the Nation Lost Its Taste for Pizza Hut
At one time, Pizza Hut was the go-to for parents and children to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
However not as many patrons are frequenting the restaurant currently, and it is reducing 50% of its British restaurants after being rescued from insolvency for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”
In the view of 23-year-old Martina, certain features Pizza Hut has been known and loved 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 station, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”
Because food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its outlets, which are being cut from 132 to just over 60.
The company, similar to other firms, has also seen its operating costs increase. Earlier this year, employee wages jumped due to increases in the legal wage floor and an rise in employer taxes.
Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “occasionally”, 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 prices are comparable, explains an industry analyst.
While Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to larger chains which specialize to off-premise dining.
“The rival chain has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're saving money, when in reality the original prices are relatively expensive,” says the expert.
But for these customers it is worth it to get their evening together brought to their home.
“We absolutely dine at home now rather than we eat out,” explains Joanne, reflecting latest data that show a drop in people visiting quick-service eateries.
Over the summer, informal dining venues saw a notable decrease in customers compared to the previous year.
Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been selling high-quality oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also having an impact in the performance of casual eateries,” says the expert.
The rising popularity of high protein diets has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.
Since people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than premium.
The growth of high-quality pizzerias” over the last several years, including popular brands, has “dramatically shifted the consumer view of what quality pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a small business based in a county in England comments: “People haven’t lost interest in pizza – they just want improved value.”
Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
According to an independent chain in a UK location, the founder says the pizza market is expanding but Pizza Hut has not provided anything fresh.
“Currently available are slice concepts, artisanal styles, new haven, sourdough, wood-fired, Detroit – it's a heavenly minefield 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.
In recent years, Pizza Hut's market has been sliced up and spread to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when personal spending are tightening.
A senior executive of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and retain staff where possible”.
He said its immediate priority was to maintain service at the surviving locations and takeaway hubs and to help employees through the transition.
However with significant funds going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the market is “complex and using existing delivery apps comes at a price”, analysts say.
Still, experts suggest, cutting its costs by exiting oversaturated towns and city centres could be a smart move to evolve.