How the Nation Turned Away from Its Taste for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.
However fewer diners are frequenting the brand nowadays, and it is reducing 50% of its UK restaurants after being bought out of administration for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”
For 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the seventies are now outdated.
“How they do their buffet and their salad bar, it appears that they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”
As grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its restaurants, which are being reduced from 132 to just over 60.
The company, like many others, has also faced its expenses increase. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer social security payments.
Two diners say 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 “very overpriced”.
Based on your selection, Pizza Hut and Domino's costs are comparable, explains an industry analyst.
Even though Pizza Hut has pickup and delivery through third-party apps, it is falling behind to major competitors which focus exclusively to off-premise dining.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the base costs are on the higher side,” explains the expert.
However for the couple it is justified to get their special meal sent directly.
“We absolutely dine at home now rather than we eat out,” comments Joanne, reflecting current figures that show a drop in people frequenting informal dining spots.
In the warmer season, informal dining venues saw a notable decrease in customers compared to the previous year.
There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been offering premium oven-ready pizzas for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also having an impact in the performance of fast-food chains,” says Mr. Hawkley.
The growing trend of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.
Because people go out to eat more rarely, they may look for a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than luxurious.
The rise of artisanal pizza places” over the last decade and a half, such as boutique chains, has “fundamentally changed the general opinion of what quality pizza is,” says the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she says.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a small business based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”
The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.
From the perspective of Pizzarova in a UK location, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.
“Currently available are slice concepts, artisanal styles, New Haven-style, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to discover.”
He says Pizza Hut “should transform” as younger people don't have any fond memories or allegiance to the chain.
Gradually, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when household budgets are shrinking.
A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and save employment where possible”.
He said its first focus was to continue operating at the open outlets and delivery sites and to support colleagues through the transition.
However with significant funds going into maintaining its outlets, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complicated and working with existing delivery apps comes at a price”, experts say.
But, he adds, cutting its costs by exiting competitive urban areas could be a smart move to adjust.