Why the Nation Lost Interest in Its Appetite for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But fewer customers are choosing the brand these days, and it is closing a significant portion of its British outlets after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she states “it's fallen out of favor.”
For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”
As ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. Similarly, its restaurants, which are being reduced from a large number to 64.
The business, like many others, has also faced its costs increase. This spring, employee wages jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.
Two diners explain they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “not good value”.
Based on your selection, Pizza Hut and Domino's costs are close, explains an industry analyst.
Even though Pizza Hut has pickup and delivery through third-party apps, it is losing out to big rivals which focus exclusively to off-premise dining.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” explains the expert.
But for these customers it is acceptable to get their date night sent directly.
“We predominantly have meals at home now instead of we eat out,” explains one of the diners, echoing current figures that show a drop in people going to casual and fast-food restaurants.
During the summer months, informal dining venues saw a notable decrease in patrons compared to last summer.
Additionally, one more competitor to ordered-in pies: the frozen or fresh pizza.
A hospitality expert, senior partner at a major consultancy, points out that not only have retailers been providing premium oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Lifestyle changes are also having an impact in the success of casual eateries,” says the expert.
The growing trend of high protein diets has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.
As people dine out not as often, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.
The “explosion of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “completely altered the public's perception of what excellent pie is,” explains the culinary analyst.
“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.
“Why would anyone spend £17.99 on a small, substandard, disappointing 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.”
An independent operator, who operates a pizza van based in a regional area explains: “People haven’t lost interest in pizza – they just want improved value.”
He says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
From the perspective of a small pizza brand in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything new.
“There are now individual slices, regional varieties, new haven, sourdough, wood-fired, Detroit – it's a wonderful array for a pizza enthusiast to explore.”
The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or attachment to the chain.
In recent years, Pizza Hut's share has been fragmented and allocated to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to raise prices – which commentators say is challenging at a time when household budgets are decreasing.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to protect our dining experience and protect jobs where possible”.
It was explained its immediate priority was to maintain service at the open outlets and off-premise points and to assist staff through the restructure.
But with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the sector is “complex and working with existing external services comes at a expense”, commentators say.
Still, experts suggest, cutting its costs by leaving crowded locations could be a effective strategy to adapt.