How the Country Lost Interest in Its Taste for Pizza Hut
In the past, Pizza Hut was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
Yet not as many customers are choosing the brand these days, and it is shutting down a significant portion of its UK outlets after being bought out of administration for the second time this year.
It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's not a thing anymore.”
For a diner in her twenties, some of the very things Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now not-so-hot.
“How they do their buffet and their salad station, it seems as if they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”
Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. The same goes for its locations, which are being reduced from 132 to just over 60.
The chain, in common with competitors, has also seen its costs increase. Earlier this year, employee wages rose due to increases in the legal wage floor and an rise in employer social security payments.
Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.
According to your order, Pizza Hut and Domino's rates are close, explains a food expert.
Even though Pizza Hut provides takeaway and deliveries through external services, it is losing out to big rivals which solely cater to the delivery sector.
“Domino's has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are relatively expensive,” says the analyst.
But for the couple it is acceptable to get their special meal delivered to their door.
“We definitely eat at home now more than we eat out,” says Joanne, matching recent statistics that show a drop in people going to informal dining spots.
In the warmer season, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.
There is also one more competitor to pizza from eateries: the supermarket pizza.
An industry leader, senior partner at a leading firm, notes that not only have retailers been providing high-quality prepared pies for quite a while – some are even offering pizza-making appliances.
“Lifestyle changes are also contributing in the popularity of fast-food chains,” states the analyst.
The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.
Since people visit restaurants less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than premium.
The growth of artisanal pizza places” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she comments.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared 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 runs a pizza van based in a regional area says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
The owner says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
At a small pizza brand in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has failed to offer anything innovative.
“Currently available are slice concepts, London pizza, thin crust, artisan base, wood-fired, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or loyalty to the chain.
Over time, Pizza Hut's market has been divided and distributed to its more modern, agile alternatives. To maintain its costly operations, it would have to increase costs – which experts say is difficult at a time when household budgets are decreasing.
The managing director of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and save employment where possible”.
It was explained its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.
But with so much money going into running its restaurants, it likely can't afford to spend heavily in its delivery service because the market is “difficult and using existing delivery apps comes at a price”, experts say.
Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a smart move to evolve.