How the Nation Lost Its Appetite for Pizza Hut
At one time, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.
However not as many customers are choosing the brand currently, and it is reducing half of its British locations after being rescued from insolvency for the second instance this calendar 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 – spend the whole day there.” Today, as a young adult, she states “it's fallen out of favor.”
For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the 1970s 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 lowering standards and have lower standards... They provide so much food and you're like ‘How can they?’”
Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to run. The same goes for its restaurants, which are being sliced from 132 to a smaller figure.
The chain, in common with competitors, has also faced its expenses go up. In April this year, employee wages rose due to higher minimum pay and an higher rate of employer national insurance contributions.
A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “not good value”.
Based on your order, Pizza Hut and Domino's costs are similar, says an industry analyst.
While Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to larger chains which specialize to this market.
“The rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the analyst.
However for Chris and Joanne it is worth it to get their special meal delivered to their door.
“We absolutely dine at home now instead of we eat out,” explains Joanne, echoing latest data that show a decline in people going to quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a 6% drop in diners compared to last summer.
Moreover, another rival to pizza from eateries: the supermarket pizza.
A hospitality expert, senior partner at a major consultancy, points out that not only have grocery stores been selling good-standard oven-ready pizzas for a long time – some are even promoting pizza-making appliances.
“Shifts in habits are also playing a factor in the performance of quick-service brands,” says the expert.
The rising popularity of low-carb regimens has driven sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.
Because people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more retro than luxurious.
The “explosion of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “dramatically shifted the public's perception of what good pizza is,” explains the food expert.
“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in Suffolk says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”
Dan 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 changing preferences.
From the perspective of a small pizza brand in Bristol, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything new.
“Currently available are individual slices, London pizza, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pie fan to explore.”
He says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the company.
Over time, Pizza Hut's market has been divided and allocated to its trendier, more nimble rivals. To maintain its expensive staffing and restaurants, it would have to charge more – which experts say is tough at a time when household budgets are decreasing.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our dining experience and save employment where possible”.
It was explained its first focus was to continue operating at the open outlets and delivery sites and to support colleagues through the restructure.
However with large sums going into maintaining its outlets, it may be unable to invest too much in its delivery service because the market is “difficult and working with existing third-party platforms comes at a expense”, experts say.
But, he adds, reducing expenses by exiting competitive urban areas could be a good way to adapt.