How the Country Lost Interest in Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the top choice for families and friends to indulge in its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
But fewer diners are choosing the chain these days, and it is shutting down a significant portion of its British restaurants after being bought out of administration for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How?’”
As grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to operate. Similarly, its restaurants, which are being reduced from a large number to 64.
The business, in common with competitors, has also experienced its operating costs rise. Earlier this year, employee wages increased due to higher minimum pay and an increase in employer taxes.
A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “not good value”.
According to your choices, Pizza Hut and Domino's costs are similar, notes a culinary author.
While Pizza Hut has pickup and delivery through external services, it is falling behind to big rivals which specialize to off-premise dining.
“Domino's has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and frequent offers that make consumers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the specialist.
But for these customers it is acceptable to get their date night delivered to their door.
“We absolutely dine at home now more than we eat out,” says the female customer, reflecting current figures that show a decline in people visiting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.
There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.
A hospitality expert, global lead for leisure at a major consultancy, explains that not only have grocery stores been providing good-standard ready-to-bake pizzas for a long time – some are even offering home-pizza ovens.
“Evolving preferences are also contributing in the popularity of fast-food chains,” states the analyst.
The rising popularity of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.
As people visit restaurants less frequently, they may look for a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than premium.
The growth of artisanal pizza places” over the last decade and a half, including new entrants, has “dramatically shifted the public's perception of what good pizza is,” says the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she states.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns a small business based in a regional area comments: “It's not that stopped liking pizza – they just want better pizza for their money.”
He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with changing preferences.
At an independent chain in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything innovative.
“Currently available are slice concepts, artisanal styles, thin crust, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to discover.”
The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or loyalty to the brand.
In recent years, Pizza Hut's share has been fragmented and spread to its more modern, agile competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.
The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and save employment where possible”.
The executive stated its key goal was to maintain service at the open outlets and off-premise points and to help employees through the change.
Yet with significant funds going into operating its locations, it may be unable to spend heavily in its delivery service because the industry is “complicated and using existing third-party platforms comes at a expense”, commentators say.
Still, experts suggest, reducing expenses by leaving competitive urban areas could be a smart move to adjust.