How the Public Lost Interest in Its Craving for the Pizza Hut Chain
At one time, the popular pizza chain was the top choice for families and friends to indulge in its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
But fewer patrons are visiting the restaurant these days, and it is closing a significant portion of its British locations after being acquired following financial trouble for the second time this year.
It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she comments “it's not a thing anymore.”
According to a diner in her twenties, the very elements Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”
Because food prices have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its outlets, which are being cut from a large number to just over 60.
The business, like many others, has also seen its operating costs go up. Earlier this year, staffing costs jumped due to rises in minimum wages and an increase in employer social security payments.
Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.
Based on your selection, Pizza Hut and Domino's costs are close, explains a culinary author.
While Pizza Hut provides pickup and delivery through external services, it is falling behind to big rivals which solely cater to the delivery sector.
“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
Yet for these customers it is worth it to get their evening together delivered to their door.
“We predominantly have meals at home now rather than we eat out,” explains Joanne, matching current figures that show a drop in people frequenting casual and fast-food restaurants.
In the warmer season, informal dining venues saw a six percent decline in diners compared to last summer.
Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, global lead for leisure at a leading firm, explains that not only have retailers been offering good-standard ready-to-bake pizzas for quite a while – some are even promoting pizza-making appliances.
“Lifestyle changes are also having an impact in the popularity of quick-service brands,” comments Mr. Hawkley.
The rising popularity of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he continues.
Because people visit restaurants more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.
The “explosion of artisanal pizza places” over the last 10 to 15 years, such as boutique chains, has “completely altered the public's perception of what quality pizza is,” notes the food expert.
“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs Smokey Deez based in a regional area comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.
“You now have by-the-slice options, artisanal styles, new haven, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pie fan to try.”
He says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's share has been divided and spread to its more modern, agile rivals. To sustain its high labor and location costs, it would have to charge more – which experts say is difficult at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and save employment where possible”.
He said its key goal was to continue operating at the surviving locations and takeaway hubs and to help employees through the restructure.
But with large sums going into running its restaurants, it likely can't afford to invest too much in its delivery service because the industry is “complicated and using existing third-party platforms comes at a price”, analysts say.
However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a smart move to adapt.