How the Nation Turned Away from Its Taste for Pizza Hut
In the past, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, endless salad selection, and make-your-own dessert.
Yet not as many diners are visiting the brand nowadays, and it is reducing 50% of its British outlets after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she says “it's not a thing anymore.”
In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.
“The way they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How can they?’”
Since ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its outlets, which are being sliced from a large number to just over 60.
The chain, like many others, has also experienced its expenses go up. Earlier this year, staffing costs increased due to higher minimum pay and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “not good value”.
Based on your order, Pizza Hut and Domino's rates are close, explains a food expert.
While Pizza Hut does offer pickup and delivery through third-party apps, it is missing out to big rivals which focus exclusively to the delivery sector.
“The rival chain has taken over the delivery market thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” notes the specialist.
Yet for Chris and Joanne it is acceptable to get their evening together delivered to their door.
“We absolutely dine at home now instead of we eat out,” explains one of the diners, echoing recent statistics that show a decrease in people frequenting quick-service eateries.
Over the summer, quick-service eateries saw a 6% drop in patrons compared to last summer.
Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have retailers been offering high-quality ready-to-bake pizzas for years – some are even selling countertop ovens.
“Evolving preferences are also having an impact in the success of casual eateries,” comments the analyst.
The rising popularity of protein-rich eating plans has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he notes.
As people dine out not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than luxurious.
The growth of high-quality pizzerias” over the last decade and a half, for example new entrants, has “fundamentally changed the consumer view of what good pizza is,” notes the food expert.
“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in Suffolk explains: “It's not that lost interest in pizza – they just want better pizza for their money.”
The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.
At an independent chain in Bristol, the founder says the industry is expanding but Pizza Hut has failed to offer anything new.
“There are now by-the-slice options, London pizza, thin crust, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pie fan to try.”
He says Pizza Hut “should transform” as the youth don't have any emotional connection or allegiance to the chain.
Over time, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster rivals. To sustain its high labor and location costs, it would have to charge more – which experts say is difficult at a time when personal spending are shrinking.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and save employment where possible”.
The executive stated its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.
However with large sums going into maintaining its outlets, it likely can't afford to spend heavily in its delivery service because the market is “complex and working with existing third-party platforms comes at a expense”, experts say.
However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to evolve.