How the Public Lost Interest in Its Taste for Pizza Hut
In the past, Pizza Hut was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
Yet not as many patrons are visiting the restaurant these days, and it is shutting down 50% of its British outlets after being rescued from insolvency for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she states “it's fallen out of favor.”
For a diner in her twenties, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.
“The way they do their all-you-can-eat and their salad station, it seems as if 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 soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. As have its restaurants, which are being reduced from a large number to just over 60.
The chain, in common with competitors, has also seen its costs go up. Earlier this year, staffing costs rose due to rises in minimum wages and an higher rate of employer national insurance contributions.
A couple in their thirties and twenties explain 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 order, Pizza Hut and Domino's rates are similar, says a food expert.
Although Pizza Hut has off-premise options through third-party apps, it is falling behind to major competitors which focus exclusively to this market.
“Another pizza company has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the expert.
However for these customers it is worth it to get their special meal brought to their home.
“We absolutely dine at home now rather than we eat out,” comments Joanne, matching latest data that show a decline in people visiting quick-service eateries.
Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.
There is also one more competitor to pizza from eateries: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been providing high-quality oven-ready pizzas for years – some are even offering home-pizza ovens.
“Lifestyle changes are also having an impact in the popularity of casual eateries,” comments Mr. Hawkley.
The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.
Since people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more dated than premium.
The growth of artisanal pizza places” over the last decade and a half, such as popular brands, has “completely altered 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. This, in my view, is what's resulted in Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns Smokey Deez based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want improved value.”
Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.
At an independent chain in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything innovative.
“There are now slice concepts, regional varieties, new haven, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”
He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the chain.
In recent years, Pizza Hut's market has been fragmented and distributed to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is difficult at a time when family finances are tightening.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to safeguard our customer service and retain staff where possible”.
He said its immediate priority was to keep running at the surviving locations and takeaway hubs and to help employees through the change.
Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its delivery service because the industry is “complex and using existing third-party platforms comes at a price”, experts say.
Still, experts suggest, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.