Why the Country Lost Interest in Its Craving for Pizza Hut
In the past, the popular pizza chain was the go-to for families and friends to feast on its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
However fewer patrons are frequenting the restaurant nowadays, and it is shutting down 50% of its UK locations after being acquired following financial trouble for the second instance 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 – spend the whole day there.” However, at present, as a young adult, she says “it's no longer popular.”
According to young customer Martina, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.
“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have inferior offerings... They're giving away 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 increasingly pricey to operate. Similarly, its restaurants, which are being sliced from a large number to a smaller figure.
The business, like many others, has also experienced its expenses go up. This spring, employee wages increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “very overpriced”.
Based on your choices, Pizza Hut and Domino's prices are similar, notes a culinary author.
Even though Pizza Hut does offer pickup and delivery through third-party apps, it is missing out to major competitors which specialize to off-premise dining.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.
But for the couple it is worth it to get their evening together sent directly.
“We predominantly have meals at home now rather than we eat out,” says Joanne, echoing latest data that show a decline in people visiting casual and fast-food restaurants.
During the summer months, informal dining venues saw a six percent decline in customers compared to the previous year.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have retailers been providing good-standard oven-ready pizzas for years – some are even offering countertop ovens.
“Shifts in habits are also having an impact in the performance of quick-service brands,” says Mr. Hawkley.
The increased interest of low-carb regimens has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.
As people dine out more rarely, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more dated than premium.
The “explosion of artisanal pizza places” over the last several years, for example popular brands, has “completely altered the consumer view of what quality pizza is,” explains the culinary analyst.
“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds 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 a county in England says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”
The owner says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.
At Pizzarova in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has not provided anything fresh.
“You now have individual slices, regional varieties, New Haven-style, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to try.”
The owner says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the brand.
Over time, Pizza Hut's market has been sliced up and distributed to its fresher, faster competitors. To keep up its costly operations, it would have to increase costs – which industry analysts say is tough at a time when personal spending are shrinking.
A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our customer service and save employment where possible”.
He said its key goal was to maintain service at the surviving locations and off-premise points and to help employees through the restructure.
But with significant funds going into operating its locations, it probably cannot to invest too much in its delivery service because the market is “complex and using existing external services comes at a price”, analysts say.
Still, experts suggest, reducing expenses by withdrawing from crowded locations could be a smart move to adapt.