Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain
At one time, the popular pizza chain was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
Yet not as many customers are choosing the restaurant these days, and it is reducing a significant portion of its UK locations after being rescued from insolvency for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she comments “it's no longer popular.”
According to a diner in her twenties, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.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 buffet and their salad bar, it seems as if they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How?’”
As food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. The same goes for its locations, which are being reduced from 132 to 64.
The chain, similar to other firms, has also experienced its costs rise. This spring, employee wages rose due to higher minimum pay and an rise in employer national insurance contributions.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
Depending on your choices, Pizza Hut and Domino's prices are similar, says an industry analyst.
Although Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to larger chains which focus exclusively to off-premise dining.
“The rival chain has managed to dominate the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the standard rates are quite high,” notes the analyst.
However for the couple it is acceptable to get their special meal brought to their home.
“We absolutely dine at home now instead of we eat out,” comments Joanne, reflecting current figures that show a drop in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in customers compared to the year before.
There is also another rival to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, senior partner at a major consultancy, explains that not only have grocery stores been offering good-standard oven-ready pizzas for years – some are even selling home-pizza ovens.
“Shifts in habits are also playing a factor in the success of fast-food chains,” says the expert.
The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.
Since people go out to eat more rarely, they may prefer a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than premium.
The “explosion of high-quality pizzerias” over the last several years, such as new entrants, has “fundamentally changed the public's perception of what excellent pie is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in a regional area comments: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with evolving tastes.
From the perspective of Pizzarova in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.
“There are now slice concepts, London pizza, New Haven-style, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's share has been fragmented and distributed to its more modern, agile alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is tough at a time when personal spending are decreasing.
The managing director of Pizza Hut's global operations said the acquisition aimed “to protect our dining experience and retain staff where possible”.
The executive stated its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to help employees through the restructure.
But with significant funds going into maintaining its outlets, it likely can't afford to spend heavily in its off-premise division because the sector is “complex and partnering with existing third-party platforms comes at a expense”, experts say.
But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.