Why the Nation Lost Its Craving for the Pizza Hut Chain
At one time, Pizza Hut was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.
Yet not as many customers are visiting the brand these days, and it is shutting down 50% of its British outlets after being acquired following financial trouble for the second occasion this year.
I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she comments “it's not a thing anymore.”
For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now less appealing.
“The manner in which they do their buffet and their salad bar, it feels like they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Since food prices have increased significantly, Pizza Hut's buffet-style service has become very expensive to run. Similarly, its outlets, which are being cut from a large number to 64.
The chain, in common with competitors, has also experienced its costs increase. Earlier this year, employee wages rose due to rises in minimum wages and an increase in employer taxes.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Depending on your selection, Pizza Hut and Domino's costs are similar, explains a food expert.
Although Pizza Hut has takeaway and deliveries through external services, it is losing out to larger chains which focus exclusively to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the expert.
Yet for the couple it is justified to get their evening together delivered to their door.
“We predominantly have meals at home now instead of we eat out,” explains one of the diners, matching latest data that show a decline in people frequenting quick-service eateries.
In the warmer season, informal dining venues saw a 6% drop in diners compared to the year before.
There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, senior partner at a major consultancy, explains that not only have retailers been selling premium prepared pies for a long time – some are even offering home-pizza ovens.
“Shifts in habits are also contributing in the performance of quick-service brands,” says the analyst.
The increased interest of low-carb regimens has increased sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he continues.
Since people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more dated than premium.
The growth of artisanal pizza places” over the last decade and a half, such as boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.
“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in a county in England says: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it could not keep up with changing preferences.
From the perspective of an independent chain in Bristol, owner Jack Lander says the pizza market is expanding but Pizza Hut has failed to offer anything new.
“You now have slice concepts, regional varieties, New Haven-style, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
He says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the company.
In recent years, Pizza Hut's market has been fragmented and spread to its more modern, agile alternatives. To maintain its high labor and location costs, it would have to increase costs – which experts say is tough at a time when personal spending are decreasing.
The leadership of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and protect jobs where possible”.
It was explained its first focus was to continue operating at the open outlets and takeaway hubs and to support colleagues through the change.
But with significant funds going into operating its locations, it may be unable to invest too much in its delivery service because the industry is “complicated and partnering with existing delivery apps comes at a expense”, analysts say.
But, he adds, lowering overhead by leaving oversaturated towns and city centres could be a smart move to evolve.