How the Nation Lost Its Craving for Pizza Hut
Once, Pizza Hut was the top choice for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.
But fewer customers are visiting the restaurant currently, and it is closing 50% of its British outlets after being acquired following financial trouble for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she comments “it's fallen out of favor.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.
“The manner in which they do their buffet and their salad bar, it feels like they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How?’”
Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its outlets, which are being sliced from over 130 to just over 60.
The company, like many others, has also seen its expenses rise. This spring, staffing costs rose due to higher minimum pay and an rise in employer taxes.
Chris, 36, and Joanne, 29 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 selection, Pizza Hut and Domino's prices are comparable, explains a culinary author.
Even though Pizza Hut provides pickup and delivery through external services, it is falling behind to larger chains which focus exclusively to the delivery sector.
“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the analyst.
But for Chris and Joanne it is acceptable to get their evening together delivered to their door.
“We definitely eat at home now instead of we eat out,” says one of the diners, reflecting latest data that show a decline in people frequenting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the year before.
Additionally, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at a leading firm, explains that not only have retailers been providing good-standard prepared pies for quite a while – some are even offering countertop ovens.
“Shifts in habits are also having an impact in the success of fast-food chains,” states the analyst.
The rising popularity of high protein diets has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.
Because people dine out more rarely, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.
The “explosion of artisanal pizza places” over the last several years, such as boutique chains, has “dramatically shifted the public's perception of what good pizza is,” explains the industry commentator.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns Smokey Deez based in a county in England explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
The owner says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
From the perspective of Pizzarova in a UK location, the founder says the pizza market is expanding but Pizza Hut has failed to offer anything fresh.
“There are now individual slices, regional varieties, new haven, artisan base, Neapolitan, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or allegiance to the brand.
In recent years, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble competitors. To maintain its expensive staffing and restaurants, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and save employment where possible”.
He said its immediate priority was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the transition.
Yet with so much money going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the industry is “complex and using existing third-party platforms comes at a cost”, commentators say.
Still, experts suggest, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.