How the Nation Turned Away from Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the favorite for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
But a declining number of patrons are frequenting the restaurant nowadays, and it is reducing a significant portion of its UK outlets after being acquired following financial trouble for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”
According to young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.
“How they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
As ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its locations, which are being cut from a large number to a smaller figure.
The business, similar to other firms, has also faced its operating costs increase. In April this year, employee wages increased due to increases in the legal wage floor and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “not good value”.
Depending on your choices, Pizza Hut and Domino's rates are similar, says a food expert.
While Pizza Hut does offer takeaway and deliveries through external services, it is losing out to major competitors which specialize to off-premise dining.
“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the expert.
However for Chris and Joanne it is justified to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” says one of the diners, echoing latest data that show a drop in people frequenting casual and fast-food restaurants.
During the summer months, informal dining venues saw a notable decrease in patrons compared to the year before.
Additionally, a further alternative to ordered-in pies: the supermarket pizza.
A hospitality expert, global lead for leisure at a leading firm, points out that not only have retailers been selling good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.
“Shifts in habits are also playing a factor in the popularity of fast-food chains,” comments the analyst.
The growing trend of high protein diets has boosted sales at poultry outlets, while reducing sales of dough-based meals, he notes.
As people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than premium.
The rise of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “dramatically shifted the consumer view of what excellent pie is,” explains the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in a regional area explains: “It's not that lost interest in pizza – they just want better pizza for their money.”
He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
At a small pizza brand in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything new.
“There are now by-the-slice options, artisanal styles, thin crust, sourdough, wood-fired, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
The owner says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the brand.
In recent years, Pizza Hut's market has been sliced up and spread to its trendier, more nimble competitors. To sustain its costly operations, it would have to increase costs – which experts say is tough at a time when household budgets are shrinking.
The leadership of Pizza Hut's overseas branches said the rescue aimed “to safeguard our guest experience and save employment where possible”.
It was explained its immediate priority was to keep running at the open outlets and delivery sites and to support colleagues through the change.
However with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the market is “complicated and working with existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a good way to evolve.