How the Nation Lost Interest in Its Appetite for Pizza Hut
In the past, Pizza Hut was the go-to for families and friends to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.
However a declining number of customers are choosing the brand currently, and it is shutting down a significant portion of its UK outlets after being bought out of administration for the second occasion this year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it seems as if they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”
Because food prices have soared, Pizza Hut's unlimited dining format has become quite costly to operate. Similarly, its outlets, which are being sliced from a large number to just over 60.
The chain, in common with competitors, has also faced its expenses rise. This spring, employee wages jumped due to increases in the legal wage floor and an rise in employer social security payments.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's prices are similar, explains an industry analyst.
While Pizza Hut does offer pickup and delivery through third-party apps, it is losing out to major competitors which focus exclusively to off-premise dining.
“Another pizza company has taken over the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” notes the specialist.
However for the couple it is acceptable to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” says the female customer, matching recent statistics that show a decline in people visiting casual and fast-food restaurants.
Over the summer, informal dining venues saw a 6% drop in customers compared to last summer.
Moreover, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, senior partner at a leading firm, notes that not only have grocery stores been providing premium oven-ready pizzas for a long time – some are even promoting countertop ovens.
“Shifts in habits are also playing a factor in the success of quick-service brands,” comments the expert.
The increased interest of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.
As people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more retro than premium.
The “explosion of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the consumer view of what quality pizza is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product 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 struggles,” she states.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted Margherita for under a tenner 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 comments: “It's not that stopped liking pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
According to Pizzarova in Bristol, the founder says the industry is broadening but Pizza Hut has failed to offer anything new.
“You now have slice concepts, artisanal styles, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pizza-loving consumer to try.”
He says Pizza Hut “must rebrand” as younger people don't have any emotional connection or attachment to the chain.
In recent years, Pizza Hut's share has been divided and distributed to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when household budgets are decreasing.
The managing director of Pizza Hut's international markets said the buyout aimed “to safeguard our guest experience and protect jobs where possible”.
The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to help employees through the change.
Yet with so much money going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the industry is “difficult and using existing third-party platforms comes at a price”, analysts say.
However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to evolve.