How the Country Turned Away from Its Taste for Pizza Hut
Once, the popular pizza chain was the go-to for parents and children to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.
But fewer patrons are frequenting the brand currently, and it is closing a significant portion of its British locations 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,” notes a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”
According to young customer Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.
“How they do their buffet and their salad bar, it seems as if they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How is that possible?’”
Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to operate. As have its locations, which are being sliced from a large number to just over 60.
The company, like many others, has also experienced its costs rise. Earlier this year, labor expenses rose due to higher minimum pay and an increase in employer taxes.
Two diners 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”.
According to your order, Pizza Hut and Domino's prices are similar, notes an industry analyst.
Even though Pizza Hut has off-premise options through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.
“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.
However for these customers it is worth it to get their date night brought to their home.
“We definitely eat at home now rather than we eat out,” says one of the diners, matching latest data that show a decrease in people visiting casual and fast-food restaurants.
During the summer months, informal dining venues saw a notable decrease in customers compared to the year before.
Moreover, one more competitor to pizza from eateries: the frozen or fresh pizza.
An industry leader, senior partner at a leading firm, points out that not only have grocery stores been providing premium prepared pies for quite a while – some are even promoting home-pizza ovens.
“Lifestyle changes are also having an impact in the success of quick-service brands,” states Mr. Hawkley.
The rising popularity of high protein diets has increased sales at grilled chicken brands, while hitting sales of dough-based meals, he notes.
Because people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than premium.
The “explosion of high-quality pizzerias” over the last decade and a half, such as popular brands, has “completely altered the general opinion of what excellent pie is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, 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 £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a small business based in a county in England says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
The owner says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with new customer habits.
From the perspective of an independent chain in Bristol, owner Jack Lander says the sector is expanding but Pizza Hut has failed to offer anything innovative.
“There are now individual slices, London pizza, new haven, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or allegiance to the brand.
In recent years, Pizza Hut's share has been fragmented and spread to its more modern, agile competitors. To keep up its costly operations, it would have to charge more – which experts say is difficult at a time when personal spending are decreasing.
The leadership of Pizza Hut's overseas branches said the buyout aimed “to protect our customer service and retain staff where possible”.
He said its immediate priority was to continue operating at the surviving locations and delivery sites and to assist staff through the restructure.
However with so much money going into running its restaurants, it may be unable to spend heavily in its delivery service because the market is “complicated and working with existing external services comes at a price”, analysts say.
But, he adds, reducing expenses by exiting crowded locations could be a good way to evolve.
