Why the Country Lost Interest in Its Appetite for the Pizza Hut Chain
Once, Pizza Hut was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.
But a declining number of customers are choosing the brand these days, and it is shutting down a significant portion of its British locations after being bought out of administration for the second time this year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she comments “it's not a thing anymore.”
According to young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the 1970s are now outdated.
“The way they do their buffet and their salad station, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”
Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to maintain. The same goes for its restaurants, which are being cut from a large number to 64.
The business, like many others, has also experienced its expenses rise. Earlier this year, staffing costs rose due to rises in minimum wages and an increase in employer national insurance contributions.
Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's costs are comparable, notes a culinary author.
Even though Pizza Hut has off-premise options through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to intensive advertising and constantly running deals that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” says the specialist.
However for these customers it is acceptable to get their date night sent directly.
“We absolutely dine at home now more than we eat out,” comments one of the diners, reflecting recent statistics that show a decrease in people frequenting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in customers compared to last summer.
There is also one more competitor to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been selling good-standard prepared pies for years – some are even selling countertop ovens.
“Lifestyle changes are also having an impact in the success of quick-service brands,” comments Mr. Hawkley.
The rising popularity of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.
As people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than luxurious.
The rise of high-quality pizzerias” over the last several years, such as new entrants, has “dramatically shifted the general opinion of what excellent pie is,” notes the food expert.
“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs a pizza van based in a county in England says: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
From the perspective of a small pizza brand in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything innovative.
“You now have by-the-slice options, regional varieties, new haven, sourdough, traditional Italian, Detroit – it's a wonderful array for a pizza enthusiast to try.”
He says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the company.
In recent years, Pizza Hut's share has been fragmented and distributed to its more modern, agile alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are tightening.
The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our guest experience and save employment where possible”.
He said its key goal was to keep running at the surviving locations and takeaway hubs and to help employees through the change.
But with significant funds going into operating its locations, it likely can't afford to invest too much in its delivery service because the sector is “difficult and partnering with existing delivery apps comes at a price”, commentators say.
However, it's noted, lowering overhead by exiting competitive urban areas could be a good way to adjust.