How the Country Lost Interest in Its Craving for Pizza Hut
At one time, Pizza Hut was the favorite for parents and children to indulge in its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.
However not as many diners are choosing the chain these days, and it is reducing half of its British locations after being bought out of administration for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she states “it's not a thing anymore.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”
Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its outlets, which are being sliced from over 130 to 64.
The chain, in common with competitors, has also seen its expenses increase. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer taxes.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's prices are close, explains a food expert.
Even though Pizza Hut provides pickup and delivery through external services, it is missing out to larger chains which specialize to the delivery sector.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are relatively expensive,” says the specialist.
But for the couple it is worth it to get their special meal delivered to their door.
“We predominantly have meals at home now rather than we eat out,” says Joanne, reflecting recent statistics that show a decrease in people visiting informal dining spots.
During the summer months, quick-service eateries saw a notable decrease in patrons compared to last summer.
Additionally, one more competitor to pizza from eateries: the supermarket pizza.
A hospitality expert, senior partner at a major consultancy, points out that not only have retailers been offering premium prepared pies for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also contributing in the popularity of fast-food chains,” states Mr. Hawkley.
The rising popularity of high protein diets has increased sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.
Since people dine out more rarely, they may prefer a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more retro than upmarket.
The “explosion of high-quality pizzerias” over the last decade and a half, including boutique chains, has “completely altered the public's perception of what good pizza is,” notes the industry commentator.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want improved value.”
Dan says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with new customer habits.
At Pizzarova in a UK location, the proprietor says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.
“There are now by-the-slice options, artisanal styles, thin crust, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pie fan to discover.”
Jack says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or allegiance to the company.
Over time, Pizza Hut's market has been sliced up and spread to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which commentators say is difficult at a time when family finances are shrinking.
The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and save employment where possible”.
It was explained its key goal was to maintain service at the open outlets and takeaway hubs and to assist staff through the change.
But with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its delivery service because the market is “complex and working with existing external services comes at a price”, analysts say.
Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.