Why the Nation Lost Its Craving for Pizza Hut
Once, the popular pizza chain was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.
However fewer customers are choosing the chain currently, and it is reducing half of its UK outlets after being bought out of administration for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she states “it's not a thing anymore.”
For young customer Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now outdated.
“The way they do their buffet and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”
Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its restaurants, which are being cut from over 130 to 64.
The chain, in common with competitors, has also experienced its operating costs increase. This spring, employee wages increased due to rises in minimum wages and an increase in employer taxes.
A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's rates are close, says a culinary author.
Although Pizza Hut provides off-premise options through delivery platforms, it is missing out to big rivals which specialize to off-premise dining.
“Another pizza company has managed to dominate the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are quite high,” says the expert.
However for the couple it is worth it to get their special meal delivered to their door.
“We predominantly have meals at home now more than we eat out,” says the female customer, echoing latest data that show a decline in people going to informal dining spots.
Over the summer, informal dining venues saw a notable decrease in diners compared to the previous year.
Moreover, one more competitor to ordered-in pies: the cook-at-home oven pizza.
Will Hawkley, global lead for leisure at a leading firm, explains that not only have retailers been selling premium ready-to-bake pizzas for a long time – some are even selling pizza-making appliances.
“Evolving preferences are also having an impact in the popularity of fast-food chains,” states the expert.
The increased interest of high protein diets has driven sales at poultry outlets, while reducing sales of carb-heavy pizza, he continues.
Since people dine out less frequently, they may look for a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than upmarket.
The rise of premium pizza outlets” over the last several years, such as new entrants, has “completely altered the consumer view of what quality pizza 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. That, arguably, is what's caused Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a chain 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 operates a pizza van based in a regional area explains: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.
At a small pizza brand in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.
“Currently available are slice concepts, artisanal styles, new haven, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to discover.”
Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or attachment to the chain.
Over time, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to increase costs – which industry analysts say is challenging at a time when personal spending are tightening.
The managing director of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and protect jobs where possible”.
The executive stated its immediate priority was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the restructure.
But with significant funds going into operating its locations, it likely can't afford to spend heavily in its off-premise division because the industry is “difficult and working with existing external services comes at a expense”, experts say.
Still, experts suggest, cutting its costs by leaving crowded locations could be a effective strategy to evolve.