How the Country Lost Interest in Its Appetite for the Pizza Hut Chain
At one time, Pizza Hut was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
However a declining number of customers are visiting the restaurant currently, and it is reducing a significant portion of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.
It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she states “it's fallen out of favor.”
For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now outdated.
“The way they do their buffet and their salad station, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How is that possible?’”
As ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. Similarly, its restaurants, which are being sliced from over 130 to a smaller figure.
The chain, like many others, has also seen its expenses increase. Earlier this year, labor expenses increased due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's costs are comparable, notes a food expert.
Even though Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to big rivals which specialize to off-premise dining.
“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” says the specialist.
Yet for these customers it is justified to get their date night delivered to their door.
“We definitely eat at home now more than we eat out,” says one of the diners, matching current figures that show a decrease in people frequenting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in diners compared to the year before.
Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.
An industry leader, senior partner at an advisory group, points out that not only have retailers been offering high-quality prepared pies for quite a while – some are even selling pizza-making appliances.
“Lifestyle changes are also playing a factor in the popularity of casual eateries,” states the expert.
The increased interest of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of dough-based meals, he adds.
Since people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.
The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “completely altered the consumer view of what excellent pie is,” says the culinary analyst.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a county in England comments: “People haven’t lost interest in pizza – they just want improved value.”
He says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
From the perspective of Pizzarova in a UK location, the founder says the industry is expanding but Pizza Hut has failed to offer anything fresh.
“You now have individual slices, artisanal styles, new haven, sourdough, Neapolitan, Detroit – it's a wonderful array for a pie fan to try.”
The owner says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or attachment to the chain.
Over time, Pizza Hut's share has been divided and distributed to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when household budgets are decreasing.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and protect jobs where possible”.
He said its key goal was to maintain service at the open outlets and delivery sites and to help employees through the transition.
But with significant funds going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the industry is “difficult and working with existing delivery apps comes at a cost”, analysts say.
But, he adds, reducing expenses by leaving competitive urban areas could be a effective strategy to evolve.