How the Nation Lost Its Appetite for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for families and friends to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
However a declining number of diners are frequenting the restaurant these days, and it is closing a significant portion of its British restaurants after being rescued from insolvency for the second time this year.
I remember going Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's not a thing anymore.”
For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.
“The manner in which they do their all-you-can-eat and their salad station, it feels like 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 buffet-style service has become increasingly pricey to maintain. The same goes for its outlets, which are being reduced from 132 to a smaller figure.
The company, in common with competitors, has also experienced its operating costs rise. Earlier this year, employee wages jumped due to rises in minimum wages and an increase in employer taxes.
Two diners explain they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's costs are close, says a food expert.
While Pizza Hut provides pickup and delivery through third-party apps, it is falling behind to big rivals which specialize to this market.
“The rival chain has managed to dominate the delivery market thanks to strong promotions and frequent offers that make shoppers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the expert.
But for these customers it is worth it to get their date night brought to their home.
“We definitely eat at home now more than we eat out,” comments one of the diners, echoing recent statistics that show a drop in people going to quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.
Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, global lead for leisure at an advisory group, notes that not only have retailers been providing high-quality ready-to-bake pizzas for years – some are even offering home-pizza ovens.
“Evolving preferences are also having an impact in the popularity of quick-service brands,” comments Mr. Hawkley.
The increased interest of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of dough-based meals, he notes.
Because people visit restaurants not as often, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than upmarket.
The “explosion of premium pizza outlets” over the last several years, including boutique chains, has “completely altered the consumer view of what good pizza is,” says the culinary analyst.
“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 resulted in Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a county in England comments: “It's not that lost interest in pizza – they just want improved value.”
Dan says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.
At an independent chain in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything innovative.
“There are now slice concepts, artisanal styles, New Haven-style, artisan base, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to try.”
He says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the company.
In recent years, Pizza Hut's share has been divided and allocated to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to charge more – which commentators say is tough at a time when personal spending are shrinking.
The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.
It was explained its immediate priority was to keep running at the open outlets and off-premise points and to assist staff through the change.
Yet with large sums going into maintaining its outlets, it may be unable to spend heavily in its off-premise division because the industry is “complicated and partnering with existing delivery apps comes at a expense”, analysts say.
Still, experts suggest, lowering overhead by leaving crowded locations could be a effective strategy to adjust.