Why the Public Turned Away from Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
Yet not as many patrons are visiting the restaurant nowadays, and it is shutting down a significant portion of its British outlets after being acquired following financial trouble for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's fallen out of favor.”
In the view of 23-year-old Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now not-so-hot.
“The way they do their buffet and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”
As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from a large number to 64.
The chain, like many others, has also faced its expenses increase. In April this year, labor expenses rose due to rises in minimum wages and an increase 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 order in a rival chain and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are similar, notes an industry analyst.
Even though Pizza Hut does offer off-premise options through delivery platforms, it is missing out to major competitors which specialize to off-premise dining.
“Another pizza company has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
But for these customers it is worth it to get their special meal brought to their home.
“We absolutely dine at home now rather than we eat out,” explains Joanne, echoing current figures that show a drop in people frequenting quick-service eateries.
Over the summer, informal dining venues saw a 6% drop in diners compared to the previous year.
There is also another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, global lead for leisure at a major consultancy, points out that not only have retailers been selling high-quality oven-ready pizzas for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also having an impact in the performance of fast-food chains,” states the expert.
The growing trend of low-carb regimens has driven sales at poultry outlets, while affecting sales of high-carbohydrate options, he continues.
Because people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than luxurious.
The growth of premium pizza outlets” over the last several years, such as new entrants, has “dramatically shifted the general opinion of what good pizza is,” explains the industry commentator.
“A thin, flavorful, gentle crust 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 downfall,” she states.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in Suffolk comments: “It's not that lost interest in pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.
From the perspective of an independent chain in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has not provided anything new.
“There are now by-the-slice options, regional varieties, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the chain.
In recent years, Pizza Hut's share has been divided and distributed to its more modern, agile alternatives. To keep up its high labor and location costs, it would have to increase costs – which commentators say is difficult at a time when family finances are tightening.
The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and save employment where possible”.
The executive stated its key goal was to keep running at the surviving locations and takeaway hubs and to assist staff through the restructure.
But with significant funds going into operating its locations, it probably cannot to spend heavily in its delivery service because the sector is “difficult and using existing third-party platforms comes at a cost”, commentators say.
However, it's noted, cutting its costs by exiting competitive urban areas could be a good way to evolve.