How the Public Lost Interest in Its Taste for the Pizza Hut Chain
In the past, the popular pizza chain was the top choice for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
Yet not as many diners are visiting the brand currently, and it is reducing 50% of its UK restaurants after being acquired following financial trouble for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she states “it's no longer popular.”
According to 23-year-old Martina, some of the very things 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 feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”
Because food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its locations, which are being reduced from 132 to just over 60.
The chain, in common with competitors, has also faced its expenses go up. This spring, staffing costs rose due to rises in minimum wages and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.
According to your selection, Pizza Hut and Domino's costs are comparable, notes a culinary author.
While Pizza Hut has off-premise options through delivery platforms, it is missing out to larger chains which solely cater to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to intensive advertising and constantly running deals that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the specialist.
Yet for the couple it is acceptable to get their date night delivered to their door.
“We definitely eat at home now more than we eat out,” explains the female customer, reflecting recent statistics that show a decrease in people frequenting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.
There is also another rival to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been providing premium prepared pies for years – some are even promoting countertop ovens.
“Lifestyle changes are also contributing in the performance of quick-service brands,” states the analyst.
The rising popularity of low-carb regimens has driven sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.
As people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than premium.
The growth of premium pizza outlets” over the last decade and a half, including boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” explains the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she says.
“Who would choose to spend £17.99 on a small, substandard, disappointing 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.”
Dan Puddle, who owns Smokey Deez based in Suffolk comments: “The issue isn’t that fallen out of love with 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 could not keep up with changing preferences.
According to a small pizza brand in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything new.
“Currently available are by-the-slice options, artisanal styles, new haven, sourdough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to try.”
The owner says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the chain.
In recent years, Pizza Hut's market has been divided and spread to its trendier, more nimble competitors. To maintain its costly operations, it would have to increase costs – which commentators say is difficult at a time when personal spending are shrinking.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our guest experience and protect jobs where possible”.
It was explained its immediate priority was to keep running at the open outlets and takeaway hubs and to support colleagues through the transition.
But with so much money going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the industry is “difficult and partnering with existing external services comes at a cost”, commentators say.
But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.