Why the Nation Lost Its Craving for Pizza Hut
Once, the popular pizza chain was the favorite for parents and children to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.
Yet not as many patrons are frequenting the restaurant currently, and it is reducing 50% of its British locations after being rescued from insolvency for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she states “it's not a thing anymore.”
According to 23-year-old Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.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 lower standards... They're giving away so much food and you're like ‘How can they?’”
Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. As have its restaurants, which are being sliced from 132 to just over 60.
The chain, in common with competitors, has also seen its costs increase. Earlier this year, staffing costs jumped due to rises in minimum wages and an increase in employer national insurance contributions.
Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “too expensive”.
According to your order, Pizza Hut and Domino's prices are close, says an industry analyst.
While Pizza Hut does offer pickup and delivery through external services, it is falling behind to big rivals which focus exclusively to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the specialist.
However for Chris and Joanne it is worth it to get their date night delivered to their door.
“We absolutely dine at home now rather than we eat out,” explains one of the diners, matching latest data that show a decrease in people frequenting quick-service eateries.
Over the summer, quick-service eateries saw a six percent decline in customers compared to the previous year.
There is also one more competitor to restaurant and takeaway pizzas: the supermarket pizza.
Will Hawkley, global lead for leisure at an advisory group, notes that not only have supermarkets been selling premium oven-ready pizzas for years – some are even offering countertop ovens.
“Shifts in habits are also contributing in the popularity of quick-service brands,” says the expert.
The increased interest of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he continues.
Because people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than premium.
The rise of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “completely altered the general opinion of what excellent pie is,” explains the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she says.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a small business based in a regional area says: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”
Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
According to an independent chain in a city in southwest England, the founder says the sector is diversifying but Pizza Hut has not provided anything new.
“Currently available are by-the-slice options, regional varieties, new haven, artisan base, wood-fired, Detroit – it's a heavenly minefield for a pizza-loving consumer to try.”
Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the brand.
In recent years, Pizza Hut's customer base has been fragmented and spread to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when personal spending are tightening.
A senior executive of Pizza Hut's global operations said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.
He said its immediate priority was to continue operating at the open outlets and takeaway hubs and to help employees through the change.
However with so much money going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and using existing delivery apps comes at a cost”, analysts say.
Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a good way to evolve.