How the Public Turned Away from Its Appetite for the Pizza Hut Chain
Once, the popular pizza chain was the top choice for families and friends to feast on its unlimited dining experience, endless salad selection, and ice cream with toppings.
But a declining number of customers are visiting the restaurant these days, and it is closing a significant portion of its UK outlets after being acquired following financial trouble for the second occasion this year.
I remember going Pizza Hut when I was a child,” says Prudence. “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 fallen out of favor.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad station, it appears that they are lowering standards and have lower standards... They offer so much food and you're like ‘How?’”
As food prices have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its locations, which are being reduced from over 130 to 64.
The chain, similar to other firms, has also seen its expenses rise. Earlier this year, employee wages increased due to higher minimum pay and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's costs are similar, notes a culinary author.
Even though Pizza Hut does offer off-premise options through external services, it is falling behind to big rivals which solely cater to off-premise dining.
“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are quite high,” says the specialist.
Yet for the couple it is justified to get their date night brought to their home.
“We definitely eat at home now more than we eat out,” comments Joanne, matching current figures that show a decrease in people frequenting quick-service eateries.
Over the summer, quick-service eateries saw a 6% drop in customers compared to last summer.
Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.
Will Hawkley, senior partner at a major consultancy, notes that not only have retailers been offering good-standard prepared pies for years – some are even selling home-pizza ovens.
“Shifts in habits are also playing a factor in the performance of casual eateries,” says the expert.
The rising popularity of high protein diets has driven sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.
Since people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than premium.
The growth of premium pizza outlets” over the last several years, including boutique chains, has “fundamentally changed the public's perception of what good pizza is,” explains the food expert.
“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who runs Smokey Deez based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
He says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.
At an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.
“Currently available are by-the-slice options, regional varieties, New Haven-style, artisan base, Neapolitan, Detroit – it's a wonderful array for a pizza enthusiast to explore.”
Jack says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the brand.
Gradually, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when family finances are shrinking.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
He said its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
However with so much money going into maintaining its outlets, it likely can't afford to spend heavily in its delivery service because the sector is “difficult and using existing third-party platforms comes at a expense”, experts say.
However, it's noted, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.