How the Public Turned Away from Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the top choice for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
Yet fewer diners are choosing the brand these days, and it is reducing half of its British locations after being bought out of administration for the second time this calendar year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she says “it's no longer popular.”
For young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.
“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Because food prices have risen sharply, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its locations, which are being cut from 132 to a smaller figure.
The business, like many others, has also faced its operating costs increase. This spring, labor expenses rose due to increases in the legal wage floor and an higher rate of employer taxes.
A couple in their thirties and twenties say they used to go 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”.
According to your selection, Pizza Hut and Domino's rates are close, notes a culinary author.
While Pizza Hut provides off-premise options through delivery platforms, it is falling behind to big rivals which solely cater to this market.
“Domino's has succeeded in leading 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 original prices are quite high,” notes the specialist.
But for the couple it is acceptable to get their evening together sent directly.
“We predominantly have meals at home now rather than we eat out,” says one of the diners, echoing current figures that show a decline in people going to casual and fast-food restaurants.
During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.
There is also a further alternative to ordered-in pies: the cook-at-home oven pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have retailers been selling premium prepared pies for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also playing a factor in the performance of fast-food chains,” says Mr. Hawkley.
The increased interest of low-carb regimens has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he notes.
Since people dine out more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than upmarket.
The “explosion of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “completely altered the consumer view of what good pizza is,” says the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she comments.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs Smokey Deez based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want improved value.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.
According to an independent chain in a UK location, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything innovative.
“There are now slice concepts, artisanal styles, thin crust, fermented dough, Neapolitan, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”
Jack says Pizza Hut “should transform” as the youth don't have any emotional connection or allegiance to the chain.
Gradually, Pizza Hut's market has been sliced up and spread to its fresher, faster rivals. To keep up its costly operations, it would have to raise prices – which experts say is difficult at a time when family finances are tightening.
A senior executive of Pizza Hut's international markets said the buyout aimed “to protect our dining experience and save employment where possible”.
It was explained its first focus was to continue operating at the surviving locations and off-premise points and to help employees through the restructure.
But with significant funds going into maintaining its outlets, it likely can't afford to invest too much in its takeaway operation because the sector is “complex and using existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, lowering overhead by leaving competitive urban areas could be a smart move to adapt.