Why the Country Lost Interest in Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the favorite for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
Yet a declining number of patrons are choosing the chain currently, and it is shutting down 50% of its British outlets after being rescued from insolvency for the second instance this year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she comments “it's fallen out of favor.”
In the view of a diner in her twenties, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad station, 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 soared, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its locations, which are being sliced from 132 to just over 60.
The chain, in common with competitors, has also seen its expenses rise. In April this year, staffing costs increased due to increases in the legal wage floor and an increase in employer national insurance contributions.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.
Based on your selection, Pizza Hut and Domino's prices are comparable, explains a culinary author.
Even though Pizza Hut has off-premise options through third-party apps, it is falling behind to major competitors which specialize to the delivery sector.
“Domino's has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the specialist.
But for Chris and Joanne it is justified to get their evening together brought to their home.
“We absolutely dine at home now more than we eat out,” comments one of the diners, echoing latest data that show a decrease in people going to informal dining spots.
During the summer months, quick-service eateries saw a 6% drop in customers compared to the previous year.
Moreover, one more competitor to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, global lead for leisure at an advisory group, points out that not only have supermarkets been offering good-standard ready-to-bake pizzas for a long time – some are even offering pizza-making appliances.
“Lifestyle changes are also playing a factor in the success of fast-food chains,” states the expert.
The growing trend of high protein diets has increased sales at chicken shops, while hitting sales of dough-based meals, he continues.
Because people visit restaurants more rarely, they may look for a more high-quality meal, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.
The “explosion of artisanal pizza places” over the last several years, including popular brands, has “fundamentally changed the general opinion of what good pizza is,” says the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a small business based in a regional area says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”
He says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.
According to an independent chain in a UK location, owner Jack Lander says the pizza market is broadening but Pizza Hut has neglected to introduce anything innovative.
“You now have slice concepts, London pizza, new haven, fermented dough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”
He says Pizza Hut “should transform” as younger people don't have any fond memories or attachment to the company.
Gradually, Pizza Hut's market has been sliced up and allocated to its fresher, faster competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is difficult at a time when household budgets are shrinking.
The leadership of Pizza Hut's international markets said the acquisition aimed “to protect our dining experience and protect jobs where possible”.
He said its key goal was to keep running at the surviving locations and off-premise points and to help employees through the change.
But with significant funds going into running its restaurants, it may be unable to spend heavily in its delivery service because the market is “complicated and working with existing third-party platforms comes at a expense”, analysts say.
Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to evolve.