How the Public Turned Away from Its Appetite for the Pizza Hut Chain
In the past, the popular pizza chain was the favorite for families and friends to feast on its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.
But fewer diners are visiting the brand nowadays, and it is closing a significant portion of its UK locations after being bought out of administration for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's fallen out of favor.”
According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it seems as if they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”
Since food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its restaurants, which are being cut from 132 to a smaller figure.
The chain, in common with competitors, has also seen its expenses go up. Earlier this year, labor expenses rose due to rises in minimum wages and an increase in employer taxes.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's prices are close, says a food expert.
Although Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to larger chains which specialize to the delivery sector.
“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the specialist.
However for the couple it is justified to get their date night sent directly.
“We definitely eat at home now more than we eat out,” comments one of the diners, matching current figures that show a decrease in people going to informal dining spots.
Over the summer, informal dining venues saw a 6% drop in customers compared to last summer.
There is also another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.
An industry leader, senior partner at a leading firm, explains that not only have supermarkets been offering good-standard ready-to-bake pizzas for a long time – some are even selling home-pizza ovens.
“Shifts in habits are also playing a factor in the success of casual eateries,” states Mr. Hawkley.
The rising popularity of low-carb regimens has boosted sales at chicken shops, while affecting sales of dough-based meals, he notes.
As people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more retro than luxurious.
The rise of high-quality pizzerias” over the last several years, such as popular brands, has “fundamentally changed the consumer view of what quality pizza is,” explains the industry commentator.
“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 led to Pizza Hut's decline,” she states.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who runs Smokey Deez based in Suffolk comments: “People haven’t stopped liking pizza – they just want improved value.”
Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.
According to a small pizza brand in a UK location, the founder says the industry is expanding but Pizza Hut has not provided anything innovative.
“Currently available are slice concepts, London pizza, New Haven-style, sourdough, traditional Italian, rectangular – it's a wonderful array for a pie fan to explore.”
Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or attachment to the company.
Gradually, Pizza Hut's market has been fragmented and spread to its trendier, more nimble competitors. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.
A senior executive of Pizza Hut's global operations said the buyout aimed “to safeguard our customer service and retain staff where possible”.
It was explained its immediate priority was to keep running at the surviving locations and off-premise points and to assist staff through the restructure.
But with large sums going into maintaining its outlets, it probably cannot to allocate significant resources in its delivery service because the market is “complex and using existing delivery apps comes at a expense”, commentators say.
But, he adds, reducing expenses by leaving crowded locations could be a good way to evolve.