How the Country Lost Its Craving for Pizza Hut
In the past, the popular pizza chain was the go-to for parents and children to feast on its unlimited dining experience, endless salad selection, and self-serve ice-cream.
Yet not as many customers are choosing the brand these days, and it is shutting down a significant portion of its British restaurants after being rescued from insolvency for the second instance this year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she says “it's fallen out of favor.”
According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now less appealing.
“How they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Since ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its locations, which are being cut from 132 to just over 60.
The chain, similar to other firms, has also faced its costs rise. In April this year, employee wages increased due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
Based on your order, Pizza Hut and Domino's costs are similar, says a food expert.
Although Pizza Hut has pickup and delivery through third-party apps, it is falling behind to major competitors which specialize to the delivery sector.
“Another pizza company has taken over the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” says the analyst.
However for Chris and Joanne it is worth it to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” explains Joanne, echoing recent statistics that show a decrease in people going to casual and fast-food restaurants.
In the warmer season, quick-service eateries saw a notable decrease in diners 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, points out that not only have grocery stores been selling good-standard oven-ready pizzas for quite a while – some are even selling countertop ovens.
“Shifts in habits are also contributing in the performance of fast-food chains,” says the expert.
The growing trend of protein-rich eating plans has boosted sales at chicken shops, while hitting sales of carb-heavy pizza, he adds.
Since people visit restaurants not as often, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more retro than premium.
The growth of premium pizza outlets” over the last several years, for example boutique chains, has “dramatically shifted the general opinion of what quality pizza is,” says the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs Smokey Deez based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”
He says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the sector is broadening but Pizza Hut has not provided anything new.
“There are now by-the-slice options, London pizza, thin crust, fermented dough, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to try.”
Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or attachment to the brand.
Over time, Pizza Hut's share has been divided and spread to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when family finances are tightening.
The managing director of Pizza Hut's international markets said the buyout aimed “to protect our customer service and protect jobs where possible”.
He said its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to assist staff through the transition.
However with so much money going into operating its locations, it may be unable to spend heavily in its takeaway operation because the sector is “complex and using existing third-party platforms comes at a cost”, commentators say.
But, he adds, lowering overhead by leaving crowded locations could be a effective strategy to evolve.