How the Nation Lost Its Appetite for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for parents and children to enjoy its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
Yet not as many customers are frequenting the chain currently, and it is closing a significant portion of its British locations after being bought out of administration for the second occasion 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 not a thing anymore.”
According to young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.
“The way they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How?’”
As food prices have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its locations, which are being cut from a large number to just over 60.
The company, in common with competitors, has also experienced its operating costs go up. In April this year, staffing costs rose due to higher minimum pay and an rise in 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”.
Depending on your selection, Pizza Hut and Domino's costs are close, explains a food expert.
While Pizza Hut provides takeaway and deliveries through delivery platforms, it is falling behind to larger chains which solely cater to off-premise dining.
“The rival chain has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” says the specialist.
Yet for these customers it is justified to get their date night brought to their home.
“We predominantly have meals at home now instead of we eat out,” says Joanne, matching recent statistics that show a drop in people visiting casual and fast-food restaurants.
Over the summer, informal dining venues saw a notable decrease in diners compared to the previous year.
There is also another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, global lead for leisure at a major consultancy, explains that not only have grocery stores been selling premium oven-ready pizzas for years – some are even promoting home-pizza ovens.
“Shifts in habits are also having an impact in the success of casual eateries,” comments Mr. Hawkley.
The rising popularity of low-carb regimens has driven sales at chicken shops, while affecting sales of dough-based meals, he adds.
Since people visit restaurants not as often, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.
The rise of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “dramatically shifted the consumer view of what excellent pie is,” explains the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, 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 large brand when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a county in England explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
According to a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything new.
“You now have individual slices, artisanal styles, thin crust, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to try.”
The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the chain.
In recent years, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when personal spending are shrinking.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to ensure our dining experience and protect jobs where possible”.
It was explained its key goal was to continue operating at the open outlets and delivery sites and to assist staff through the change.
However with so much money going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the industry is “complex and working with existing third-party platforms comes at a price”, commentators say.
Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a smart move to evolve.