How the Nation Turned Away from Its Craving for Pizza Hut
Once, Pizza Hut was the go-to for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
However not as many diners are frequenting the brand these days, and it is reducing 50% of its British outlets after being bought out of administration for the second time this calendar year.
It was common to visit 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.” But now, as a young adult, she says “it's fallen out of favor.”
For 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 not-so-hot.
“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. Similarly, its outlets, which are being cut from over 130 to just over 60.
The company, in common with competitors, has also experienced its operating costs go up. Earlier this year, labor expenses jumped due to rises in minimum wages and an higher rate of employer social security payments.
A couple in their thirties and twenties mention they frequently dined 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 selection, Pizza Hut and Domino's costs are comparable, notes an industry analyst.
Although Pizza Hut has pickup and delivery through delivery platforms, it is missing out to major competitors which solely cater to this market.
“Another pizza company has managed to dominate the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the standard rates are quite high,” says the expert.
However for the couple it is worth it to get their evening together sent directly.
“We definitely eat at home now rather than we eat out,” comments the female customer, echoing latest data that show a decrease in people going to casual and fast-food restaurants.
During the summer months, casual and fast-food restaurants saw a notable decrease in diners compared to the previous year.
Moreover, one more competitor to ordered-in pies: the supermarket pizza.
An industry leader, head of leisure and hospitality at a leading firm, notes that not only have retailers been selling high-quality ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.
“Lifestyle changes are also having an impact in the success of casual eateries,” states the analyst.
The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of dough-based meals, he continues.
Since people dine out less frequently, they may seek out a more premium experience, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more retro than premium.
The growth of artisanal pizza places” over the last several years, such as new entrants, has “fundamentally changed the public's perception of what quality pizza is,” notes the food expert.
“A crisp, airy, digestible pizza 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 downfall,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in Suffolk says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
Dan says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
From the perspective of Pizzarova in a city in southwest England, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything new.
“There are now by-the-slice options, artisanal styles, thin crust, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the chain.
In recent years, Pizza Hut's market has been divided and distributed to its more modern, agile alternatives. To maintain its high labor and location costs, it would have to increase costs – which experts say is difficult at a time when personal spending are decreasing.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our dining experience and save employment where possible”.
The executive stated its first focus was to continue operating at the open outlets and delivery sites and to support colleagues through the change.
But with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the industry is “complex and partnering with existing external services comes at a expense”, commentators say.
But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a good way to adjust.