Why the Nation Lost Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the go-to for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
Yet a declining number of patrons are frequenting the restaurant currently, and it is closing half of its UK restaurants after being rescued from insolvency for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she states “it's not a thing anymore.”
In the view of a diner in her twenties, the very elements 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 bar, it feels like they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How can they?’”
Because grocery costs have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. As have its locations, which are being sliced from a large number to a smaller figure.
The chain, similar to other firms, has also seen its expenses rise. Earlier this year, labor expenses increased due to rises in minimum wages and an increase in employer taxes.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's costs are close, notes an industry analyst.
Although Pizza Hut has off-premise options through third-party apps, it is missing out to major competitors which solely cater to the delivery sector.
“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the specialist.
But for the couple it is worth it to get their evening together sent directly.
“We predominantly have meals at home now instead of we eat out,” explains one of the diners, matching recent statistics that show a decrease in people going to casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the year before.
Moreover, another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have grocery stores been selling good-standard oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments the analyst.
The rising popularity of high protein diets has boosted sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.
As people dine out more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than upmarket.
The “explosion of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “completely altered the general opinion of what quality pizza is,” says the industry commentator.
“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she states.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in a county in England explains: “People haven’t stopped liking pizza – they just want improved value.”
Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
At an independent chain in a city in southwest England, the proprietor says the sector is diversifying but Pizza Hut has failed to offer anything fresh.
“There are now by-the-slice options, artisanal styles, thin crust, sourdough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to try.”
The owner says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.
Over time, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to increase costs – which experts say is difficult at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and save employment where possible”.
He said its immediate priority was to maintain service at the open outlets and off-premise points and to support colleagues through the restructure.
But with so much money going into maintaining its outlets, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and working with existing external services comes at a expense”, experts say.
But, he adds, lowering overhead by leaving crowded locations could be a good way to adjust.