Why the Public Turned Away from Its Appetite for the Pizza Hut Chain
In the past, Pizza Hut was the go-to for families and friends to enjoy its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.
However not as many patrons are choosing the restaurant nowadays, and it is reducing half of its UK outlets after being bought out of administration for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now less appealing.
“How they do their buffet and their salad bar, it appears that they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How?’”
Since grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its locations, which are being reduced from 132 to just over 60.
The business, similar to other firms, has also seen its costs go up. In April this year, employee wages increased due to increases in the legal wage floor and an increase in employer national insurance contributions.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's prices are comparable, says a culinary author.
While Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which focus exclusively to this market.
“The rival chain has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” says the expert.
But for the couple it is acceptable to get their date night brought to their home.
“We absolutely dine at home now more than we eat out,” comments Joanne, matching latest data that show a drop in people going to quick-service eateries.
In the warmer season, informal dining venues saw a 6% drop in patrons compared to the previous year.
Additionally, another rival to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have retailers been offering good-standard oven-ready pizzas for quite a while – some are even promoting countertop ovens.
“Evolving preferences are also playing a factor in the popularity of casual eateries,” says the expert.
The growing trend of high protein diets has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.
Because people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than upmarket.
The “explosion of premium pizza outlets” over the last several years, including popular brands, has “fundamentally changed the consumer view of what quality pizza is,” explains the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in a county in England explains: “It's not that lost interest in pizza – they just want higher quality at a fair price.”
Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.
At a small pizza brand in Bristol, owner Jack Lander says the pizza market is expanding but Pizza Hut has not provided anything new.
“Currently available are individual slices, regional varieties, New Haven-style, artisan base, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to try.”
Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's share has been divided and spread to its more modern, agile alternatives. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when personal spending are decreasing.
A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.
It was explained its first focus was to keep running at the open outlets and off-premise points and to assist staff through the restructure.
But with so much money going into running its restaurants, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complex and partnering with existing third-party platforms comes at a cost”, analysts say.
But, he adds, cutting its costs by exiting oversaturated towns and city centres could be a good way to adjust.