Why the Public Lost Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
But fewer customers are choosing the restaurant these days, and it is reducing a significant portion of its British locations after being bought out of administration for the second time this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she comments “it's not a thing anymore.”
According to young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.
“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How?’”
Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. As have its outlets, which are being reduced from 132 to 64.
The chain, similar to other firms, has also seen its operating costs go up. This spring, staffing costs jumped due to higher minimum pay and an increase in employer social security payments.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Depending on your order, Pizza Hut and Domino's prices are close, says an industry analyst.
Even though Pizza Hut provides takeaway and deliveries through external services, it is losing out to larger chains which specialize to this market.
“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're finding a good deal, when in reality the standard rates are quite high,” explains the analyst.
But for Chris and Joanne it is justified to get their special meal brought to their home.
“We absolutely dine at home now instead of we eat out,” explains the female customer, echoing recent statistics that show a drop in people frequenting casual and fast-food restaurants.
In the warmer season, quick-service eateries saw a notable decrease in patrons compared to last summer.
Moreover, another rival to ordered-in pies: the supermarket pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been selling good-standard oven-ready pizzas for a long time – some are even selling pizza-making appliances.
“Evolving preferences are also contributing in the success of casual eateries,” states the expert.
The rising popularity of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.
Since people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than luxurious.
The growth of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “completely altered the public's perception of what good pizza is,” notes the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, 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 chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in Suffolk explains: “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 gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.
At an independent chain in Bristol, the founder says the sector is diversifying but Pizza Hut has not provided anything fresh.
“You now have individual slices, artisanal styles, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a delightful challenge for a pie fan to explore.”
The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or allegiance to the chain.
Over time, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To keep up its high labor and location costs, it would have to charge more – which industry analysts say is difficult at a time when personal spending are decreasing.
The leadership of Pizza Hut's global operations said the buyout aimed “to safeguard our guest experience and protect jobs where possible”.
It was explained its key goal was to maintain service at the surviving locations and off-premise points and to assist staff through the restructure.
Yet with so much money going into running its restaurants, it may be unable to invest too much in its delivery service because the industry is “complex and working with existing external services comes at a price”, analysts say.
However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.