Why the Nation Lost Its Appetite for the Pizza Hut Chain
Once, Pizza Hut was the favorite for families and friends to enjoy its unlimited dining experience, unlimited salad bar, and make-your-own dessert.
However fewer diners are frequenting the restaurant these days, and it is reducing a significant portion of its UK locations after being acquired following financial trouble for the second time this year.
I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she states “it's no longer popular.”
For 23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.
“The manner in which 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 provide so much food and you're like ‘How?’”
As food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its locations, which are being cut from a large number to 64.
The business, like many others, has also seen its expenses increase. In April this year, employee wages jumped due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's costs are similar, notes a culinary author.
Although Pizza Hut provides off-premise options through third-party apps, it is missing out to major competitors which focus exclusively to the delivery sector.
“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” explains the analyst.
However for the couple it is acceptable to get their date night brought to their home.
“We absolutely dine at home now rather than we eat out,” explains the female customer, echoing current figures that show a drop in people going to casual and fast-food restaurants.
During the summer months, casual and fast-food restaurants saw a six percent decline in diners compared to the year before.
Moreover, another rival to pizza from eateries: the supermarket pizza.
An industry leader, senior partner at a leading firm, points out that not only have grocery stores been offering premium oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also playing a factor in the success of quick-service brands,” states Mr. Hawkley.
The rising popularity of high protein diets has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he continues.
Because people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more old-fashioned than premium.
The rise of premium pizza outlets” over the last several years, such as new entrants, has “fundamentally changed the public's perception of what excellent pie is,” notes the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for a lower price 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 Suffolk comments: “People haven’t stopped liking pizza – they just want improved value.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
At a small pizza brand in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything new.
“There are now slice concepts, artisanal styles, New Haven-style, sourdough, Neapolitan, Detroit – it's a delightful challenge for a pie fan to explore.”
The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or attachment to the brand.
In recent years, Pizza Hut's market has been sliced up and distributed to its fresher, faster rivals. To maintain its costly operations, it would have to charge more – which commentators say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and retain staff where possible”.
The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to help employees through the transition.
But with so much money going into operating its locations, it probably cannot to invest too much in its delivery service because the sector is “difficult and partnering with existing third-party platforms comes at a expense”, analysts say.
But, he adds, reducing expenses by withdrawing from crowded locations could be a effective strategy to adapt.