Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
But a declining number of customers are choosing the chain these days, and it is shutting down a significant portion of its British outlets after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, as a young adult, she says “it's not a thing anymore.”
For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now outdated.
“The manner in which they do their buffet and their salad bar, it appears that 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 quite costly to maintain. The same goes for its locations, which are being cut from over 130 to a smaller figure.
The business, like many others, has also seen its operating costs increase. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer taxes.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's prices are comparable, explains a food expert.
Even though Pizza Hut does offer takeaway and deliveries through external services, it is missing out to big rivals which specialize to the delivery sector.
“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the analyst.
However for Chris and Joanne it is justified to get their special meal brought to their home.
“We predominantly have meals at home now more than we eat out,” says the female customer, matching recent statistics that show a drop in people visiting informal dining spots.
During the summer months, informal dining venues saw a six percent decline in customers compared to the year before.
Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been providing high-quality oven-ready pizzas for quite a while – some are even offering countertop ovens.
“Lifestyle changes are also playing a factor in the success of casual eateries,” states the expert.
The increased interest of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.
Because people visit restaurants less frequently, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more dated than luxurious.
The “explosion of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “completely altered the consumer view of what excellent pie is,” notes the food expert.
“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she says.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in Suffolk comments: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with new customer habits.
According to Pizzarova in a city in southwest England, the founder says the sector is diversifying but Pizza Hut has not provided anything fresh.
“There are now by-the-slice options, regional varieties, thin crust, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”
Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the brand.
Gradually, Pizza Hut's customer base has been divided and distributed to its more modern, agile alternatives. To sustain its costly operations, it would have to charge more – which experts say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and retain staff where possible”.
It was explained its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to help employees through the change.
But with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the market is “difficult and working with existing delivery apps comes at a expense”, experts say.
However, it's noted, lowering overhead by exiting oversaturated towns and city centres could be a smart move to adjust.