Why the Public Lost Its Appetite for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for families and friends to enjoy its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
But fewer customers are visiting the restaurant currently, and it is reducing a significant portion of its British locations after being acquired following financial trouble for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she comments “it's not a thing anymore.”
For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now outdated.
“The way they do their buffet and their salad bar, it feels like they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”
As ingredient expenses have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its restaurants, which are being sliced from a large number to 64.
The company, in common with competitors, has also seen its operating costs rise. In April this year, employee wages rose due to higher minimum pay and an higher rate of employer social security payments.
A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.
According to your choices, Pizza Hut and Domino's rates are comparable, says an industry analyst.
While Pizza Hut has off-premise options through third-party apps, it is missing out to big rivals which solely cater to this market.
“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” notes the expert.
Yet for these customers it is justified to get their special meal sent directly.
“We predominantly have meals at home now instead of we eat out,” comments Joanne, echoing latest data that show a decline in people frequenting informal dining spots.
During the summer months, casual and fast-food restaurants saw a 6% drop in diners compared to last summer.
Moreover, another rival to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, senior partner at a major consultancy, explains that not only have supermarkets been providing premium prepared pies for quite a while – some are even offering countertop ovens.
“Evolving preferences are also playing a factor in the success of quick-service brands,” comments the analyst.
The increased interest of high protein diets has increased sales at poultry outlets, while affecting sales of high-carbohydrate options, he continues.
Because people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than luxurious.
The growth of artisanal pizza places” over the last 10 to 15 years, including boutique chains, has “completely altered the general opinion of what quality pizza is,” says the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with evolving tastes.
From the perspective of Pizzarova in a UK location, owner Jack Lander says the sector is expanding but Pizza Hut has not provided anything fresh.
“There are now individual slices, regional varieties, New Haven-style, fermented dough, wood-fired, Detroit – it's a wonderful array for a pie fan to explore.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the company.
Gradually, Pizza Hut's customer base has been divided and spread to its trendier, more nimble alternatives. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is difficult at a time when personal spending are tightening.
The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and save employment where possible”.
The executive stated its key goal was to maintain service at the surviving locations and off-premise points and to assist staff through the transition.
Yet with large sums going into operating its locations, it likely can't afford to spend heavily in its delivery service because the sector is “complex and partnering with existing third-party platforms comes at a expense”, experts say.
However, it's noted, cutting its costs by exiting oversaturated towns and city centres could be a good way to evolve.