How the Public Turned Away from Its Appetite for the Pizza Hut Chain
In the past, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.
However a declining number of patrons are visiting the restaurant nowadays, and it is closing 50% of its British outlets after being acquired following financial trouble for the second instance this calendar year.
It was common to visit 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, in her mid-twenties, she says “it's fallen out of favor.”
For young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the 1970s are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have reduced quality... 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 quite costly to operate. The same goes for its locations, which are being sliced from a large number to just over 60.
The business, in common with competitors, has also faced its operating costs increase. In April this year, employee wages jumped due to increases in the legal wage floor and an increase in employer social security payments.
Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's prices are close, notes a culinary author.
Although Pizza Hut provides off-premise options through third-party apps, it is losing out to major competitors which focus exclusively to this market.
“Domino's has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” explains the specialist.
Yet for the couple it is worth it to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” explains Joanne, echoing recent statistics that show a decline in people visiting casual and fast-food restaurants.
During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.
Moreover, another rival to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been selling premium oven-ready pizzas for quite a while – some are even promoting home-pizza ovens.
“Shifts in habits are also contributing in the popularity of casual eateries,” states the expert.
The growing trend of low-carb regimens has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.
Since people visit restaurants more rarely, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than upmarket.
The growth of premium pizza outlets” over the last 10 to 15 years, such as popular brands, has “completely altered the consumer view of what quality pizza is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who runs Smokey Deez based in a regional area says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it failed to adapt with new customer habits.
According to Pizzarova in a UK location, the founder says the sector is expanding but Pizza Hut has neglected to introduce anything new.
“You now have individual slices, regional varieties, New Haven-style, sourdough, traditional Italian, deep-dish – it's a delightful challenge for a pizza-loving consumer to discover.”
Jack says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the company.
Gradually, Pizza Hut's customer base has been divided and allocated to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to raise prices – which commentators say is challenging at a time when personal spending are decreasing.
The managing director of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and protect jobs where possible”.
It was explained its key goal was to continue operating at the surviving locations and takeaway hubs and to assist staff through the restructure.
Yet with large sums going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the sector is “difficult and using existing delivery apps comes at a expense”, analysts say.
However, it's noted, cutting its costs by exiting crowded locations could be a good way to adjust.