How the Nation Lost Interest in Its Taste for the Pizza Hut Chain
Once, the popular pizza chain was the favorite for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
Yet a declining number of customers are visiting the restaurant nowadays, and it is shutting down half of its British outlets after being bought out of administration for the second time this calendar year.
It was common to visit 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.” But now, in her mid-twenties, she says “it's not a thing anymore.”
For 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now outdated.
“How they do their buffet and their salad bar, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How can they?’”
As food prices have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. Similarly, its outlets, which are being cut from a large number to just over 60.
The company, in common with competitors, has also faced its expenses increase. In April this year, employee wages increased due to rises in minimum wages and an higher rate of employer national insurance contributions.
Two diners mention they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's prices are similar, notes an industry analyst.
Even though Pizza Hut has pickup and delivery through third-party apps, it is falling behind to major competitors which focus exclusively to the delivery sector.
“Another pizza company has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” says the expert.
Yet for these customers it is justified to get their special meal sent directly.
“We predominantly have meals at home now more than we eat out,” comments Joanne, echoing recent statistics that show a decline in people visiting casual and fast-food restaurants.
Over the summer, informal dining venues saw a 6% drop in diners compared to last summer.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
A hospitality expert, global lead for leisure at a leading firm, points out that not only have grocery stores been offering good-standard ready-to-bake pizzas for years – some are even offering pizza-making appliances.
“Evolving preferences are also contributing in the popularity of fast-food chains,” states Mr. Hawkley.
The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.
Because people dine out more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than luxurious.
The growth of artisanal pizza places” over the last decade and a half, including popular brands, has “completely altered the consumer view of what good pizza is,” notes the industry commentator.
“A light, fresh, easy-to-digest product 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 comments.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a pizza van based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want improved value.”
The owner says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.
From the perspective of an independent chain in a UK location, owner Jack Lander says the pizza market is expanding but Pizza Hut has not provided anything new.
“Currently available are by-the-slice options, regional varieties, New Haven-style, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or attachment to the brand.
Gradually, Pizza Hut's market has been fragmented and spread to its trendier, more nimble alternatives. To maintain its high labor and location costs, it would have to charge more – which commentators say is tough at a time when family finances are decreasing.
The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and save employment where possible”.
He said its key goal was to continue operating at the open outlets and off-premise points and to assist staff through the transition.
Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its delivery service because the industry is “complex and partnering with existing external services comes at a cost”, analysts say.
However, it's noted, reducing expenses by leaving oversaturated towns and city centres could be a effective strategy to adapt.