How the Country Lost Interest in Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for families and friends to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.
However fewer diners are frequenting the restaurant nowadays, and it is closing half of its British restaurants after being rescued from insolvency for the second occasion this year.
I remember going Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she says “it's not a thing anymore.”
In the view of a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now not-so-hot.
“The way they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its locations, which are being cut from 132 to 64.
The company, similar to other firms, has also experienced its operating costs rise. Earlier this year, labor expenses increased due to rises in minimum wages and an increase in employer national insurance contributions.
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 “very overpriced”.
Based on your choices, Pizza Hut and Domino's prices are similar, notes an industry analyst.
While Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to big rivals which specialize to the delivery sector.
“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the analyst.
However for the couple it is worth it to get their special meal brought to their home.
“We predominantly have meals at home now rather than we eat out,” says the female customer, reflecting recent statistics that show a decline in people frequenting quick-service eateries.
Over the summer, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.
Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.
Will Hawkley, head of leisure and hospitality at a leading firm, points out that not only have retailers been providing high-quality oven-ready pizzas for years – some are even promoting home-pizza ovens.
“Lifestyle changes are also contributing in the success of casual eateries,” says the expert.
The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.
Because people visit restaurants more rarely, they may prefer a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more retro than premium.
The rise of high-quality pizzerias” over the last 10 to 15 years, for example boutique chains, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she states.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in a regional area explains: “It's not that lost interest in pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.
From the perspective of a small pizza brand in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.
“There are now slice concepts, regional varieties, New Haven-style, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to try.”
The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or allegiance to the chain.
In recent years, Pizza Hut's market has been sliced up and allocated to its more modern, agile competitors. To maintain its costly operations, it would have to increase costs – which commentators say is tough at a time when personal spending are decreasing.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our customer service and protect jobs where possible”.
The executive stated its first focus was to maintain service at the open outlets and off-premise points and to assist staff through the restructure.
However with so much money going into maintaining its outlets, it may be unable to invest too much in its takeaway operation because the market is “complicated and partnering with existing delivery apps comes at a price”, analysts say.
But, he adds, lowering overhead by leaving crowded locations could be a smart move to adjust.