How the Country Lost Interest in Its Taste for Pizza Hut
In the past, Pizza Hut was the top choice for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
However not as many diners are visiting the chain these days, and it is reducing 50% of its British locations 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,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she states “it's no longer popular.”
For young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.
“How they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How?’”
Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to operate. Similarly, its locations, which are being cut from a large number to 64.
The chain, similar to other firms, has also seen its costs increase. This spring, staffing costs rose due to rises in minimum wages and an increase in employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “not good value”.
Based on your order, Pizza Hut and Domino's rates are similar, notes a food expert.
Even though Pizza Hut does offer pickup and delivery through external services, it is missing out to major competitors which specialize to off-premise dining.
“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” says the specialist.
Yet for these customers it is justified to get their date night sent directly.
“We absolutely dine at home now instead of we eat out,” explains one of the diners, reflecting latest data that show a decrease in people going to informal dining spots.
Over the summer, informal dining venues saw a six percent decline in diners compared to the previous year.
There is also one more competitor to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, senior partner at a major consultancy, points out that not only have supermarkets been providing high-quality ready-to-bake pizzas for years – some are even selling home-pizza ovens.
“Evolving preferences are also having an impact in the popularity of quick-service brands,” states the expert.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while affecting sales of dough-based meals, he notes.
As people visit restaurants not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more dated than luxurious.
The “explosion of premium pizza outlets” over the last decade and a half, including boutique chains, has “fundamentally changed the general opinion of what good pizza is,” explains the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in a regional area says: “People haven’t stopped liking pizza – they just want better pizza for their money.”
Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with changing preferences.
At Pizzarova in Bristol, the founder says the pizza market is diversifying but Pizza Hut has not provided anything new.
“There are now individual slices, artisanal styles, new haven, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pie fan to try.”
He says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or attachment to the brand.
In recent years, Pizza Hut's customer base has been divided and spread to its fresher, faster rivals. To keep up its high labor and location costs, it would have to raise prices – which experts say is difficult at a time when family finances are shrinking.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and retain staff where possible”.
The executive stated its key goal was to continue operating at the surviving locations and takeaway hubs and to assist staff through the transition.
But with large sums going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the sector is “complex and working with existing external services comes at a price”, analysts say.
However, it's noted, lowering overhead by withdrawing from crowded locations could be a smart move to adjust.