Why the Public Turned Away from Its Appetite for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
But a declining number of patrons are visiting the brand these days, and it is closing 50% of its British outlets after being rescued from insolvency for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's no longer popular.”
For 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the seventies are now not-so-hot.
“The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being sliced from over 130 to just over 60.
The chain, in common with competitors, has also experienced its costs go up. This spring, staffing costs rose due to higher minimum pay and an higher rate of employer taxes.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's prices are close, notes a food expert.
Even though Pizza Hut provides off-premise options through third-party apps, it is losing out to major competitors which specialize to this market.
“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” notes the specialist.
Yet for Chris and Joanne it is worth it to get their evening together sent directly.
“We absolutely dine at home now instead of we eat out,” says the female customer, reflecting recent statistics that show a decrease in people frequenting casual and fast-food restaurants.
Over the summer, informal dining venues saw a 6% drop in patrons compared to the year before.
Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been offering high-quality oven-ready pizzas for a long time – some are even offering pizza-making appliances.
“Evolving preferences are also having an impact in the success of fast-food chains,” comments the expert.
The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.
Because people visit restaurants less frequently, they may look for a more high-quality meal, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than upmarket.
The growth of premium pizza outlets” over the last several years, including boutique chains, has “fundamentally changed the public's perception of what excellent pie is,” explains the food expert.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who operates a pizza van based in a county in England says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.
At a small pizza brand in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything fresh.
“There are now individual slices, artisanal styles, thin crust, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”
The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or attachment to the company.
Gradually, Pizza Hut's share has been divided and spread to its fresher, faster rivals. To maintain its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when personal spending are decreasing.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to ensure our customer service and protect jobs where possible”.
He said its first focus was to maintain service at the open outlets and takeaway hubs and to assist staff through the change.
However with so much money going into operating its locations, it probably cannot to allocate significant resources in its takeaway operation because the sector is “complicated and working with existing third-party platforms comes at a cost”, commentators say.
Still, experts suggest, lowering overhead by leaving oversaturated towns and city centres could be a good way to adjust.