How the Public Turned Away from Its Craving for Pizza Hut
At one time, the popular pizza chain was the go-to for parents and children to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
Yet not as many diners are choosing the brand currently, and it is shutting down a significant portion of its British outlets after being acquired following financial trouble for the second time this calendar year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she comments “it's not a thing anymore.”
For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the seventies are now outdated.
“The manner in which they do their buffet and their salad station, it seems as if they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”
Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its outlets, which are being reduced from 132 to a smaller figure.
The company, in common with competitors, has also faced its costs rise. In April this year, labor expenses increased due to increases in the legal wage floor and an rise in employer social security payments.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are comparable, says a food expert.
Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is losing out to major competitors which focus exclusively to off-premise dining.
“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the analyst.
However for these customers it is worth it to get their date night sent directly.
“We absolutely dine at home now more than we eat out,” says one of the diners, reflecting recent statistics that show a decrease in people going to informal dining spots.
Over the summer, quick-service eateries saw a six percent decline in patrons compared to last summer.
Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have grocery stores been selling good-standard oven-ready pizzas for a long time – some are even selling home-pizza ovens.
“Lifestyle changes are also having an impact in the popularity of quick-service brands,” says the expert.
The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while reducing sales of dough-based meals, he notes.
Because people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than premium.
The rise of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the consumer view of what excellent pie is,” says the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she comments.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise 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 a no-brainer.”
Dan Puddle, who runs a small business based in a county in England says: “It's not that lost interest in pizza – they just want higher quality at a fair price.”
Dan says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
According to an independent chain in Bristol, the founder says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.
“There are now slice concepts, regional varieties, new haven, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when family finances are decreasing.
The leadership of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.
The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.
Yet with so much money going into running its restaurants, it likely can't afford to invest too much in its delivery service because the industry is “complicated and using existing delivery apps comes at a expense”, commentators say.
Still, experts suggest, cutting its costs by withdrawing from crowded locations could be a effective strategy to adjust.