Why the Country Turned Away from Its Appetite for Pizza Hut
At one time, Pizza Hut was the favorite for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.
But a declining number of diners are visiting the restaurant currently, and it is reducing 50% of its UK locations after being bought out of administration for the second instance this year.
It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's fallen out of favor.”
In the view of young customer Martina, certain features Pizza Hut has been famous 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 bar, it appears that they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”
Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its restaurants, which are being reduced from 132 to a smaller figure.
The company, similar to other firms, has also experienced its expenses go up. 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 order in Domino's and think Pizza Hut is “very overpriced”.
Depending on your choices, Pizza Hut and Domino's prices are comparable, notes an industry analyst.
Even though Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to big rivals which solely cater to off-premise dining.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” says the expert.
Yet for Chris and Joanne it is acceptable to get their special meal sent directly.
“We absolutely dine at home now instead of we eat out,” comments one of the diners, matching latest data that show a decline in people frequenting casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to last summer.
Additionally, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, senior partner at an advisory group, explains that not only have grocery stores been offering premium oven-ready pizzas for years – some are even selling pizza-making appliances.
“Evolving preferences are also contributing in the success of fast-food chains,” says the analyst.
The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while affecting sales of dough-based meals, he notes.
Since people visit restaurants not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more dated than upmarket.
The rise of artisanal pizza places” over the last decade and a half, including popular brands, has “completely altered the public's perception of what quality pizza is,” says the industry commentator.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a small business based in a regional area says: “People haven’t fallen out of love with pizza – they just want improved value.”
The owner says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with evolving tastes.
At a small pizza brand in a UK location, the proprietor says the industry is diversifying but Pizza Hut has failed to offer anything new.
“You now have by-the-slice options, London pizza, new haven, sourdough, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to discover.”
Jack says Pizza Hut “should transform” as newer generations don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's customer base has been sliced up and distributed to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is tough at a time when family finances are shrinking.
The leadership of Pizza Hut's global operations said the buyout aimed “to protect our customer service and retain staff where possible”.
He said its immediate priority was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the change.
But with large sums going into maintaining its outlets, it may be unable to allocate significant resources in its off-premise division because the industry is “complicated and working with existing third-party platforms comes at a expense”, analysts say.
Still, experts suggest, cutting its costs by leaving crowded locations could be a smart move to evolve.