How the Country Turned Away from Its Taste for the Pizza Hut Chain
At one time, the popular pizza chain was the go-to for groups and loved ones to indulge in its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.
But a declining number of customers are visiting the restaurant nowadays, and it is closing 50% of its UK locations after being rescued from insolvency for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, aged 24, she states “it's not a thing anymore.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.
“The manner in which they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have lower standards... They provide so much food and you're like ‘How?’”
Because food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to maintain. As have its outlets, which are being sliced from 132 to a smaller figure.
The company, similar to other firms, has also seen its operating costs increase. Earlier this year, employee wages increased due to increases in the legal wage floor and an higher rate of employer social security payments.
Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's prices are comparable, notes an industry analyst.
Although Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to major competitors which focus exclusively to this market.
“Another pizza company has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the expert.
But for the couple it is worth it to get their evening together brought to their home.
“We absolutely dine at home now rather than we eat out,” explains one of the diners, echoing recent statistics that show a decrease in people frequenting quick-service eateries.
In the warmer season, informal dining venues saw a six percent decline in diners compared to last summer.
Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.
An industry leader, senior partner at a leading firm, explains that not only have retailers been selling good-standard prepared pies for years – some are even offering pizza-making appliances.
“Shifts in habits are also contributing in the success of fast-food chains,” comments the expert.
The increased interest of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.
As people dine out not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more retro than upmarket.
The growth of high-quality pizzerias” over the last several years, for example new entrants, has “dramatically shifted the public's perception of what quality pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want improved value.”
The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
According to an independent chain in a UK location, the proprietor says the sector is diversifying but Pizza Hut has neglected to introduce anything innovative.
“There are now individual slices, artisanal styles, new haven, artisan base, wood-fired, rectangular – it's a wonderful array for a pie fan to try.”
He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the company.
Over time, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble alternatives. To maintain its costly operations, it would have to charge more – which industry analysts say is challenging at a time when personal spending are shrinking.
The leadership of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and retain staff where possible”.
It was explained its key goal was to keep running at the open outlets and takeaway hubs and to assist staff through the transition.
But with significant funds going into operating its locations, it likely can't afford to allocate significant resources in its off-premise division because the industry is “difficult and using existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, reducing expenses by leaving crowded locations could be a good way to evolve.