How the Nation Turned Away from Its Craving for the Pizza Hut Chain
At one time, Pizza Hut was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
But not as many customers are frequenting the chain nowadays, and it is reducing half of its UK restaurants after being bought out of administration for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's no longer popular.”
For a diner in her twenties, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now outdated.
“The way they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How can they?’”
Since food prices have increased significantly, Pizza Hut's buffet-style service has become very expensive to run. As have its restaurants, which are being reduced from 132 to 64.
The business, similar to other firms, has also faced its expenses rise. This spring, labor expenses rose due to increases in the legal wage floor and an higher rate of employer taxes.
Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are comparable, says a culinary author.
While Pizza Hut does offer takeaway and deliveries through delivery platforms, it is falling behind to major competitors which focus exclusively to off-premise dining.
“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” says the analyst.
But for these customers it is acceptable to get their evening together brought to their home.
“We predominantly have meals at home now instead of we eat out,” explains Joanne, reflecting recent statistics that show a drop in people going to casual and fast-food restaurants.
Over the summer, quick-service eateries saw a notable decrease in diners compared to the previous year.
Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, senior partner at an advisory group, notes that not only have retailers been offering high-quality prepared pies for years – some are even selling countertop ovens.
“Shifts in habits are also playing a factor in the success of quick-service brands,” states the expert.
The rising popularity of high protein diets has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he notes.
Since people go out to eat more rarely, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than luxurious.
The “explosion of high-quality pizzerias” over the last several years, including popular brands, has “dramatically shifted the consumer view of what good pizza is,” says the industry commentator.
“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she comments.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a pizza van based in a county in England comments: “People haven’t stopped liking pizza – they just want better pizza for their money.”
He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.
From the perspective of an independent chain in a UK location, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything fresh.
“Currently available are individual slices, London pizza, thin crust, artisan base, wood-fired, Detroit – it's a wonderful array for a pie fan to discover.”
Jack says Pizza Hut “must rebrand” as the youth don't have any emotional connection or allegiance to the chain.
In recent years, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and retain staff where possible”.
It was explained its key goal was to continue operating at the open outlets and off-premise points and to assist staff through the change.
But with so much money going into running its restaurants, it probably cannot to invest too much in its off-premise division because the sector is “complex and partnering with existing external services comes at a cost”, experts say.
However, it's noted, reducing expenses by leaving competitive urban areas could be a smart move to adapt.