How the Nation Lost Interest in Its Taste for Pizza Hut
Once, Pizza Hut was the favorite for parents and children to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
But fewer diners are visiting the restaurant currently, and it is closing a significant portion of its UK locations after being acquired following financial trouble for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she comments “it's no longer popular.”
According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.
“The way they do their buffet and their salad bar, it feels like they are cutting corners and have reduced quality... They provide so much food and you're like ‘How can they?’”
As grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its locations, which are being reduced from 132 to just over 60.
The company, like many others, has also experienced its expenses increase. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise in employer taxes.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's costs are comparable, explains an industry analyst.
Even though Pizza Hut provides off-premise options through external services, it is losing out to major competitors which solely cater to off-premise dining.
“The rival chain has taken over the delivery market thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
Yet for the couple it is acceptable to get their date night sent directly.
“We absolutely dine at home now more than we eat out,” explains one of the diners, echoing current figures that show a drop in people frequenting informal dining spots.
Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.
Moreover, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.
An industry leader, senior partner at a leading firm, notes that not only have grocery stores been offering high-quality ready-to-bake pizzas for a long time – some are even selling countertop ovens.
“Evolving preferences are also contributing in the performance of quick-service brands,” comments the expert.
The growing trend of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.
Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than luxurious.
The “explosion of artisanal pizza places” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the general opinion of what excellent pie is,” notes the food expert.
“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” 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 Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want improved value.”
He says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.
According to a small pizza brand in Bristol, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.
“You now have by-the-slice options, London pizza, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a delightful challenge for a pizza-loving consumer to explore.”
Jack says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the company.
Gradually, Pizza Hut's share has been fragmented and allocated to its fresher, faster competitors. To keep up its high labor and location costs, it would have to charge more – which experts say is challenging at a time when family finances are tightening.
The leadership of Pizza Hut's overseas branches said the rescue aimed “to ensure our customer service and retain staff where possible”.
The executive stated its immediate priority was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the restructure.
However with large sums going into running its restaurants, it may be unable to invest too much in its off-premise division because the industry is “complex and using existing external services comes at a price”, analysts say.
But, he adds, reducing expenses by withdrawing from crowded locations could be a good way to evolve.