How the Public Lost Interest in Its Craving for Pizza Hut
At one time, Pizza Hut was the favorite for groups and loved ones to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.
However a declining number of diners are choosing the brand nowadays, and it is reducing a significant portion of its British outlets after being rescued from insolvency for the second time this year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's no longer popular.”
In the view of young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.
“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How can they?’”
As ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. The same goes for its restaurants, which are being sliced from 132 to a smaller figure.
The chain, similar to other firms, has also experienced its costs rise. In April this year, staffing costs increased due to rises in minimum wages and an rise in employer taxes.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's costs are comparable, says a culinary author.
While Pizza Hut has pickup and delivery through external services, it is missing out to major competitors which specialize to the delivery sector.
“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the specialist.
But for these customers it is worth it to get their date night sent directly.
“We definitely eat at home now more than we eat out,” comments one of the diners, echoing current figures that show a decline in people visiting quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in customers compared to the year before.
Additionally, another rival to ordered-in pies: the supermarket pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have retailers been offering premium ready-to-bake pizzas for a long time – some are even selling home-pizza ovens.
“Evolving preferences are also playing a factor in the performance of fast-food chains,” says Mr. Hawkley.
The increased interest of high protein diets has boosted sales at poultry outlets, while hitting sales of high-carbohydrate options, he notes.
Because people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than upmarket.
The “explosion of artisanal pizza places” over the last several years, such as popular brands, has “dramatically shifted the general opinion of what good pizza is,” says the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in Suffolk explains: “People haven’t stopped liking pizza – they just want improved value.”
He says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
At Pizzarova in a city in southwest England, the proprietor says the industry is broadening but Pizza Hut has not provided anything new.
“You now have by-the-slice options, London pizza, New Haven-style, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”
The owner says Pizza Hut “should transform” as the youth don't have any emotional connection or allegiance to the chain.
Over time, Pizza Hut's customer base has been sliced up and distributed to its trendier, more nimble alternatives. To keep up its costly operations, it would have to raise prices – which industry analysts say is challenging at a time when family finances are tightening.
A senior executive of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and retain staff where possible”.
It was explained its first focus was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the transition.
But with so much money going into operating its locations, it may be unable to invest too much in its takeaway operation because the sector is “complicated and partnering with existing delivery apps comes at a expense”, experts say.
But, he adds, cutting its costs by exiting oversaturated towns and city centres could be a good way to evolve.