How the Nation Turned Away from Its Appetite for Pizza Hut
Once, Pizza Hut was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.
Yet fewer diners are visiting the brand nowadays, and it is reducing 50% of its British locations after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's no longer popular.”
In the view of young customer Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the seventies are now not-so-hot.
“How they do their buffet and their salad station, it feels like they are cutting corners and have lower standards... They offer so much food and you're like ‘How is that possible?’”
Since food prices have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its restaurants, which are being cut from 132 to just over 60.
The chain, similar to other firms, has also faced its expenses increase. This spring, employee wages rose due to increases in the legal wage floor and an rise in employer taxes.
Two diners mention 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”.
According to your choices, Pizza Hut and Domino's rates are similar, says a culinary author.
While Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to big rivals which specialize to off-premise dining.
“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” explains the expert.
Yet for Chris and Joanne it is acceptable to get their date night sent directly.
“We predominantly have meals at home now more than we eat out,” comments Joanne, reflecting recent statistics that show a decrease in people frequenting casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.
Moreover, a further alternative to ordered-in pies: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been selling premium oven-ready pizzas for a long time – some are even promoting pizza-making appliances.
“Shifts in habits are also having an impact in the popularity of casual eateries,” says the expert.
The growing trend of high protein diets has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.
Because people visit restaurants not as often, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.
The “explosion of artisanal pizza places” over the last decade and a half, such as popular brands, has “completely altered the public's perception of what quality pizza is,” explains the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she says.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a regional area comments: “People haven’t lost interest in pizza – they just want improved value.”
Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.
According to Pizzarova in a city in southwest England, the founder says the pizza market is expanding but Pizza Hut has not provided anything new.
“Currently available are by-the-slice options, London pizza, thin crust, artisan base, Neapolitan, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”
The owner says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's market has been divided and allocated to its more modern, agile competitors. To keep up its costly operations, it would have to charge more – which commentators say is difficult at a time when household budgets are shrinking.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our customer service and protect jobs where possible”.
It was explained its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
However with significant funds going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the sector is “difficult and partnering with existing delivery apps comes at a expense”, analysts say.
Still, experts suggest, reducing expenses by exiting competitive urban areas could be a effective strategy to adjust.