How the Nation Lost Interest in Its Craving for Pizza Hut
Once, the popular pizza chain was the go-to for parents and children to indulge in its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.
Yet not as many customers are visiting the brand currently, and it is closing half of its British outlets after being rescued from insolvency for the second time this year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she comments “it's no longer popular.”
For a diner in her twenties, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How can they?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its restaurants, which are being reduced from over 130 to a smaller figure.
The chain, in common with competitors, has also seen its operating costs rise. In April this year, employee wages increased due to rises in minimum wages and an rise in employer social security payments.
Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
Based on your choices, Pizza Hut and Domino's prices are comparable, explains a culinary author.
Even though Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to big rivals which solely cater to this market.
“Another pizza company 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 standard rates are on the higher side,” says the expert.
However for these customers it is justified to get their date night sent directly.
“We predominantly have meals at home now more than we eat out,” says one of the diners, reflecting latest data that show a drop in people frequenting quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in patrons compared to last summer.
There is also one more competitor to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have retailers been selling good-standard ready-to-bake pizzas for years – some are even promoting pizza-making appliances.
“Evolving preferences are also having an impact in the performance of quick-service brands,” comments Mr. Hawkley.
The rising popularity of high protein diets has increased sales at chicken shops, while hitting sales of carb-heavy pizza, he adds.
Because people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than upmarket.
The “explosion of premium pizza outlets” over the last decade and a half, for example boutique chains, has “dramatically shifted the general opinion of what quality pizza is,” notes the culinary analyst.
“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns a pizza van 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.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
At Pizzarova in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.
“You now have slice concepts, regional varieties, new haven, artisan base, traditional Italian, deep-dish – it's a wonderful array for a pizza enthusiast to explore.”
The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or loyalty to the chain.
Over time, Pizza Hut's market has been sliced up and spread to its fresher, faster rivals. To maintain its costly operations, it would have to charge more – which commentators say is tough at a time when personal spending are shrinking.
The managing director of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and retain staff where possible”.
It was explained its immediate priority was to continue operating at the surviving locations and delivery sites and to help employees through the change.
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 market is “complicated and using existing delivery apps comes at a price”, experts say.
But, he adds, lowering overhead by withdrawing from crowded locations could be a smart move to adapt.