How the Public Turned Away from Its Craving for the Pizza Hut Chain
In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
However not as many customers are frequenting the restaurant these days, and it is shutting down half of its British locations after being bought out of administration for the second instance this calendar year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she says “it's fallen out of favor.”
According to a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.
“The way they do their buffet and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How?’”
As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. Similarly, its outlets, which are being cut from a large number to a smaller figure.
The chain, similar to other firms, has also faced its costs rise. In April this year, staffing costs increased due to rises in minimum wages and an increase in employer taxes.
Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.
Depending on your order, Pizza Hut and Domino's prices are similar, explains a culinary author.
While Pizza Hut provides pickup and delivery through external services, it is falling behind to major competitors which solely cater to the delivery sector.
“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” says the specialist.
Yet for Chris and Joanne it is justified to get their date night delivered to their door.
“We predominantly have meals at home now rather than we eat out,” says the female customer, matching current figures that show a decline in people visiting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in customers compared to the previous year.
Moreover, one more competitor to ordered-in pies: the supermarket pizza.
An industry leader, senior partner at a leading firm, explains that not only have grocery stores been providing good-standard oven-ready pizzas for a long time – some are even selling pizza-making appliances.
“Evolving preferences are also contributing in the popularity of casual eateries,” comments the analyst.
The rising popularity of high protein diets has boosted sales at poultry outlets, while affecting sales of dough-based meals, he adds.
Because people go out to eat less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.
The “explosion of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “completely altered the public's perception of what good pizza is,” says the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
According to an independent chain in Bristol, the proprietor says the sector is expanding but Pizza Hut has not provided anything innovative.
“Currently available are individual slices, London pizza, new haven, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the chain.
Gradually, Pizza Hut's share has been sliced up and distributed to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is challenging at a time when household budgets are decreasing.
The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and save employment where possible”.
The executive stated its key goal was to keep running at the surviving locations and delivery sites and to assist staff through the transition.
Yet with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the industry is “complicated and working with existing third-party platforms comes at a expense”, commentators say.
But, he adds, reducing expenses by exiting competitive urban areas could be a effective strategy to adapt.