Why the Nation Lost Interest in Its Craving for Pizza Hut
At one time, the popular pizza chain was the top choice for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
But fewer customers are visiting the restaurant these days, and it is closing half of its British restaurants after being acquired following financial trouble for the second instance this year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's not a thing anymore.”
According to young customer Martina, some of the very things Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.
“How they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its outlets, which are being sliced from over 130 to just over 60.
The business, like many others, has also experienced its expenses rise. This spring, employee wages rose due to rises in minimum wages and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's prices are close, explains a food expert.
Although Pizza Hut does offer off-premise options through external services, it is missing out to big rivals which focus exclusively to the delivery sector.
“Another pizza company has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the specialist.
Yet for the couple it is justified to get their evening together delivered to their door.
“We predominantly have meals at home now instead of we eat out,” comments the female customer, reflecting current figures that show a drop in people visiting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a 6% drop in diners compared to the year before.
Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have retailers been providing good-standard prepared pies for quite a while – some are even offering pizza-making appliances.
“Lifestyle changes are also playing a factor in the popularity of casual eateries,” says the expert.
The rising popularity of high protein diets has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.
Since people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than premium.
The growth of premium pizza outlets” over the last several years, for example popular brands, has “dramatically shifted the public's perception of what excellent pie is,” explains the industry commentator.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns Smokey Deez based in a county in England explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
The owner says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
From the perspective of an independent chain in a city in southwest England, the founder says the industry is broadening but Pizza Hut has not provided anything innovative.
“You now have individual slices, artisanal styles, thin crust, sourdough, wood-fired, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”
The owner says Pizza Hut “should transform” as the youth don't have any fond memories or loyalty to the chain.
Over time, Pizza Hut's market has been divided and spread to its more modern, agile competitors. To keep up its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.
The leadership of Pizza Hut's global operations said the acquisition aimed “to protect our dining experience and save employment where possible”.
It was explained its first focus was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.
But with so much money going into operating its locations, it may be unable to allocate significant resources in its off-premise division because the market is “difficult and working with existing third-party platforms comes at a expense”, analysts say.
Still, experts suggest, cutting its costs by exiting oversaturated towns and city centres could be a good way to evolve.