How the Public Turned Away from Its Taste for Pizza Hut
Once, Pizza Hut was the top choice for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
But a declining number of patrons are frequenting the chain currently, and it is closing a significant portion of its British outlets after being rescued from insolvency for the second time this year.
It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she states “it's no longer popular.”
According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.
“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How is that possible?’”
Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to operate. As have its outlets, which are being cut from 132 to just over 60.
The company, similar to other firms, has also experienced its expenses rise. In April this year, labor expenses increased due to increases in the legal wage floor and an higher rate of 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 choose a rival chain and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's costs are similar, notes a food expert.
While Pizza Hut provides takeaway and deliveries through third-party apps, it is losing out to larger chains which focus exclusively to off-premise dining.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” explains the expert.
Yet for Chris and Joanne it is worth it to get their date night brought to their home.
“We absolutely dine at home now instead of we eat out,” comments one of the diners, echoing latest data that show a drop in people visiting quick-service eateries.
Over the summer, casual and fast-food restaurants saw a six percent decline in customers compared to last summer.
There is also one more competitor to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, senior partner at an advisory group, explains that not only have retailers been selling high-quality oven-ready pizzas for a long time – some are even selling home-pizza ovens.
“Shifts in habits are also contributing in the success of quick-service brands,” says Mr. Hawkley.
The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he continues.
As people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more old-fashioned than premium.
The growth of high-quality pizzerias” over the last 10 to 15 years, for example popular brands, has “fundamentally changed the public's perception of what quality pizza is,” explains the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she comments.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in a regional area comments: “It's not that lost interest in pizza – they just want improved value.”
Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.
At an independent chain in Bristol, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything new.
“You now have individual slices, regional varieties, new haven, sourdough, wood-fired, rectangular – it's a heavenly minefield for a pie fan to discover.”
He says Pizza Hut “should transform” as younger people don't have any emotional connection or attachment to the chain.
In recent years, Pizza Hut's share has been fragmented and allocated to its more modern, agile competitors. To maintain its costly operations, it would have to raise prices – which industry analysts say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and save employment where possible”.
The executive stated its first focus was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the change.
Yet with large sums going into running its restaurants, it probably cannot to spend heavily in its off-premise division because the sector is “complicated and using existing delivery apps comes at a price”, analysts say.
But, he adds, cutting its costs by withdrawing from oversaturated towns and city centres could be a smart move to evolve.