Why the Public Lost Its Craving for the Pizza Hut Chain
Once, Pizza Hut was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
Yet not as many customers are visiting the chain nowadays, and it is closing half of its British outlets after being rescued from insolvency for the second instance this year.
It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's fallen out of favor.”
According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now outdated.
“How they do their all-you-can-eat and their salad station, 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?’”
As ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. The same goes for its locations, which are being reduced from over 130 to 64.
The company, like many others, has also faced its operating costs rise. This spring, staffing costs jumped due to higher minimum pay and an higher rate of employer national insurance contributions.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Depending on your choices, Pizza Hut and Domino's costs are comparable, explains a food expert.
Even though Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to major competitors which solely cater to off-premise dining.
“Another pizza company has managed to dominate the takeaway pizza sector thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are on the higher side,” explains the expert.
However for the couple it is justified to get their special meal sent directly.
“We definitely eat at home now instead of we eat out,” says the female customer, matching latest data that show a decline in people visiting informal dining spots.
In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.
Additionally, one more competitor to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, global lead for leisure at a major consultancy, explains that not only have supermarkets been offering premium ready-to-bake pizzas for years – some are even offering pizza-making appliances.
“Lifestyle changes are also contributing in the popularity of fast-food chains,” says the analyst.
The rising popularity of high protein diets has increased sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he adds.
Because people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.
The growth of premium pizza outlets” over the last 10 to 15 years, such as boutique chains, has “dramatically shifted the public's perception of what excellent pie is,” says the food expert.
“A light, fresh, easy-to-digest product 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 says.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs Smokey Deez based in a county in England says: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
At a small pizza brand in a city in southwest England, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.
“Currently available are individual slices, artisanal styles, new haven, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pie fan to try.”
Jack says Pizza Hut “must rebrand” as the youth don't have any emotional connection or allegiance to the brand.
Gradually, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when family finances are tightening.
The leadership of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and save employment where possible”.
The executive stated its key goal was to keep running at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
But with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the market is “difficult and partnering with existing third-party platforms comes at a cost”, experts say.
Still, experts suggest, cutting its costs by withdrawing from crowded locations could be a effective strategy to adjust.