How the Country Turned Away from Its Craving for Pizza Hut
At one time, the popular pizza chain was the favorite for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
Yet fewer customers are frequenting the restaurant these days, and it is shutting down a significant portion of its UK outlets after being acquired following financial trouble for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's no longer popular.”
According to young customer Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the seventies are now outdated.
“The way they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have lower standards... They provide 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 increasingly pricey to operate. As have its outlets, which are being cut from 132 to just over 60.
The company, like many others, has also faced its costs go up. Earlier this year, labor expenses rose due to higher minimum pay and an rise in employer national insurance contributions.
Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's costs are similar, explains a food expert.
Even though Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to big rivals which specialize to this market.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're saving money, when in reality the base costs are quite high,” explains the specialist.
However for these customers it is justified to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” comments one of the diners, matching latest data that show a drop in people going to informal dining spots.
During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to the previous year.
Additionally, another rival to ordered-in pies: the supermarket pizza.
An industry leader, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been providing high-quality prepared pies for years – some are even offering pizza-making appliances.
“Shifts in habits are also contributing in the success of quick-service brands,” states Mr. Hawkley.
The growing trend of low-carb regimens has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.
Since people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than premium.
The rise of premium pizza outlets” over the last several years, including new entrants, has “fundamentally changed the consumer view of what quality pizza is,” notes the industry commentator.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area comments: “People haven’t stopped liking pizza – they just want better pizza for their money.”
The owner says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
According to Pizzarova in a UK location, the proprietor says the sector is expanding but Pizza Hut has not provided anything innovative.
“Currently available are slice concepts, London pizza, new haven, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or allegiance to the company.
In recent years, Pizza Hut's share has been sliced up and spread to its trendier, more nimble rivals. To keep up its costly operations, it would have to increase costs – which experts say is challenging at a time when household budgets are tightening.
The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and retain staff where possible”.
It was explained its first focus was to continue operating at the surviving locations and off-premise points and to support colleagues through the transition.
But with large sums going into operating its locations, it may be unable to spend heavily in its takeaway operation because the market is “difficult and working with existing delivery apps comes at a price”, commentators say.
However, it's noted, cutting its costs by exiting crowded locations could be a good way to adapt.