Why the Nation Lost Interest in Its Appetite for Pizza Hut
At one time, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
But fewer customers are frequenting the brand nowadays, and it is reducing a significant portion of its British locations after being rescued from insolvency for the second occasion this year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she says “it's fallen out of favor.”
For a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the seventies are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
As food prices have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its restaurants, which are being sliced from 132 to just over 60.
The company, similar to other firms, has also experienced its operating costs go up. In April this year, employee wages increased due to higher minimum pay and an increase in employer social security payments.
A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
According to your choices, Pizza Hut and Domino's costs are close, notes an industry analyst.
While Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which solely cater to the delivery sector.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are on the higher side,” says the analyst.
But for these customers it is justified to get their date night delivered to their door.
“We predominantly have meals at home now rather than we eat out,” says one of the diners, echoing recent statistics that show a decline in people frequenting informal dining spots.
In the warmer season, quick-service eateries saw a notable decrease in patrons compared to last summer.
There is also a further alternative to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have grocery stores been providing good-standard prepared pies for quite a while – some are even offering countertop ovens.
“Lifestyle changes are also playing a factor in the success of quick-service brands,” comments the expert.
The growing trend of low-carb regimens has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.
Since people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than luxurious.
The growth of high-quality pizzerias” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the public's perception of what quality pizza is,” notes the food expert.
“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she states.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner 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 regional area comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
According to Pizzarova in Bristol, the founder says the industry is expanding but Pizza Hut has neglected to introduce anything fresh.
“You now have individual slices, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to discover.”
He says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or loyalty to the brand.
In recent years, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when household budgets are tightening.
A senior executive of Pizza Hut's global operations said the rescue aimed “to safeguard our dining experience and save employment where possible”.
He said its first focus was to keep running at the open outlets and takeaway hubs and to assist staff through the restructure.
However with large sums going into running its restaurants, it likely can't afford to spend heavily in its delivery service because the sector is “complex and using existing third-party platforms comes at a cost”, analysts say.
But, he adds, reducing expenses by exiting oversaturated towns and city centres could be a good way to evolve.