How the Public Lost Interest in Its Taste for Pizza Hut
In the past, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
However a declining number of diners are visiting the restaurant currently, and it is reducing 50% of its UK restaurants after being bought out of administration for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, aged 24, she says “it's not a thing anymore.”
According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”
Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its outlets, which are being reduced from a large number to 64.
The business, in common with competitors, has also seen its operating costs rise. Earlier this year, staffing costs increased due to rises in minimum wages and an higher rate of employer taxes.
A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Depending on your choices, Pizza Hut and Domino's costs are close, explains a food expert.
Although Pizza Hut has takeaway and deliveries through third-party apps, it is losing out to major competitors which solely cater to the delivery sector.
“The rival chain has managed to dominate the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” explains the specialist.
However for the couple it is acceptable to get their evening together delivered to their door.
“We absolutely dine at home now instead of we eat out,” says one of the diners, matching current figures that show a decline in people frequenting quick-service eateries.
During the summer months, quick-service eateries saw a six percent decline in diners compared to the previous year.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
A hospitality expert, global lead for leisure at a leading firm, notes that not only have supermarkets been offering good-standard ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.
“Lifestyle changes are also playing a factor in the performance of quick-service brands,” says the expert.
The growing trend of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he notes.
Since people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than premium.
The “explosion of artisanal pizza places” over the last 10 to 15 years, such as boutique chains, has “completely altered the public's perception of what excellent pie is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she states.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain 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?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with changing preferences.
From the perspective of Pizzarova in a UK location, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything innovative.
“Currently available are by-the-slice options, artisanal styles, new haven, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pie fan to explore.”
He says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or allegiance to the company.
Gradually, Pizza Hut's market has been fragmented and allocated to its more modern, agile alternatives. To maintain its costly operations, it would have to raise prices – which experts say is challenging at a time when household budgets are decreasing.
A senior executive of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and protect jobs where possible”.
The executive stated its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to help employees through the restructure.
But with large sums going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the sector is “complex and working with existing external services comes at a price”, experts say.
However, it's noted, lowering overhead by leaving crowded locations could be a good way to adjust.