How the Country Lost Interest in Its Craving for Pizza Hut
In the past, Pizza Hut was the favorite for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.
But a declining number of customers are choosing the chain currently, and it is shutting down 50% of its British restaurants after being bought out of administration for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”
According to 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now less appealing.
“The way they do their buffet and their salad bar, it seems as if they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”
Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its locations, which are being cut from over 130 to just over 60.
The business, in common with competitors, has also experienced its costs increase. This spring, employee wages jumped due to increases in the legal wage floor and an rise in employer social security payments.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
According to your choices, Pizza Hut and Domino's rates are similar, explains a food expert.
Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is losing out to big rivals which solely cater to off-premise dining.
“Another pizza company has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the base costs are quite high,” explains the specialist.
Yet for these customers it is worth it to get their date night sent directly.
“We absolutely dine at home now instead of we eat out,” says the female customer, echoing current figures that show a decrease in people frequenting informal dining spots.
Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to the year before.
Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.
An industry leader, global lead for leisure at a leading firm, notes that not only have grocery stores been selling high-quality prepared pies for a long time – some are even selling home-pizza ovens.
“Lifestyle changes are also playing a factor in the popularity of quick-service brands,” states the analyst.
The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.
Since people dine out less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than upmarket.
The rise of high-quality pizzerias” over the last several years, for example new entrants, has “fundamentally changed the general opinion of what excellent pie is,” says the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in a county in England explains: “People haven’t lost interest in pizza – they just want improved value.”
The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.
From the perspective of Pizzarova in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has not provided anything new.
“Currently available are individual slices, regional varieties, thin crust, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”
Jack says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the chain.
Gradually, Pizza Hut's market has been sliced up and spread to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when household budgets are decreasing.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to safeguard our customer service and save employment where possible”.
The executive stated its immediate priority was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the change.
Yet with large sums going into maintaining its outlets, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complicated and partnering with existing external services comes at a cost”, analysts say.
But, he adds, cutting its costs by exiting crowded locations could be a effective strategy to adapt.