Why the Nation Lost Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
Yet fewer customers are visiting the brand these days, and it is closing half of its British locations after being acquired following financial trouble for the second time this year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”
According to a diner in her twenties, certain features Pizza Hut has been famous for since it started in the UK in the mid-20th century are now not-so-hot.
“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How?’”
Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to run. As have its locations, which are being cut from a large number to a smaller figure.
The business, like many others, has also seen its expenses rise. Earlier this year, employee wages rose due to rises in minimum wages and an increase in employer social security payments.
A couple in their thirties and twenties mention 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 “very overpriced”.
Based on your order, Pizza Hut and Domino's prices are similar, notes a food expert.
Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is falling behind to larger chains which solely cater to this market.
“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are on the higher side,” notes the analyst.
But for Chris and Joanne it is acceptable to get their special meal brought to their home.
“We predominantly have meals at home now instead of we eat out,” comments the female customer, echoing recent statistics that show a drop in people frequenting quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to the previous year.
Additionally, a further alternative to ordered-in pies: the supermarket pizza.
A hospitality expert, global lead for leisure at a leading firm, points out that not only have supermarkets been providing premium oven-ready pizzas for quite a while – some are even promoting countertop ovens.
“Lifestyle changes are also playing a factor in the success of fast-food chains,” states the analyst.
The growing trend of low-carb regimens has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he continues.
Because people visit restaurants more rarely, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more dated than upmarket.
The growth of artisanal pizza places” over the last decade and a half, for example popular brands, has “completely altered the consumer view of what excellent pie is,” notes the food expert.
“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she says.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a pizza van based in a regional area says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.
At a small pizza brand in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything innovative.
“There are now individual slices, London pizza, New Haven-style, sourdough, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”
He says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or attachment to the company.
In recent years, Pizza Hut's customer base has been sliced up and spread to its more modern, agile rivals. To maintain its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when household budgets are tightening.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and protect jobs where possible”.
The executive stated its first focus was to keep running 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 probably cannot to spend heavily in its delivery service because the industry is “complex and working with existing delivery apps comes at a expense”, analysts say.
However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.