How the Nation Turned Away from Its Taste for Pizza Hut
At one time, the popular pizza chain was the favorite for families and friends to indulge in its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.
However not as many patrons are frequenting the restaurant currently, and it is shutting down 50% of its British locations after being bought out of administration for the second occasion this year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's not a thing anymore.”
For a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They provide so much food and you're like ‘How can they?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its locations, which are being sliced from 132 to a smaller figure.
The chain, similar to other firms, has also seen its expenses rise. This spring, labor expenses rose due to rises in minimum wages and an higher rate of employer social security payments.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
According to your choices, Pizza Hut and Domino's prices are comparable, explains a food expert.
While Pizza Hut does offer takeaway and deliveries through delivery platforms, it is losing out to larger chains which focus exclusively to off-premise dining.
“The rival chain has taken over the off-premise pizza industry thanks to intensive advertising and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are relatively expensive,” notes the analyst.
However for Chris and Joanne it is justified to get their evening together delivered to their door.
“We definitely eat at home now instead of we eat out,” comments the female customer, matching latest data that show a drop in people visiting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.
There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, global lead for leisure at a leading firm, explains that not only have supermarkets been selling good-standard oven-ready pizzas for years – some are even offering countertop ovens.
“Evolving preferences are also having an impact in the popularity of quick-service brands,” states the expert.
The growing trend of protein-rich eating plans has boosted sales at poultry outlets, while reducing sales of carb-heavy pizza, he notes.
Because people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more retro than upmarket.
The “explosion of artisanal pizza places” over the last several years, for example popular brands, has “fundamentally changed the public's perception of what excellent pie is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded 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 tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a small business based in a county in England explains: “People haven’t lost interest in pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
According to an independent chain in a UK location, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything innovative.
“Currently available are individual slices, London pizza, thin crust, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pie fan to explore.”
Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the company.
In recent years, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble alternatives. To sustain its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when personal spending are tightening.
The leadership of Pizza Hut's global operations said the acquisition aimed “to ensure our guest experience and save employment where possible”.
It was explained its immediate priority was to keep running at the open outlets and takeaway hubs and to assist staff through the restructure.
But with large sums going into running its restaurants, it probably cannot to allocate significant resources in its takeaway operation because the sector is “complicated and using existing external services comes at a expense”, commentators say.
However, it's noted, reducing expenses by leaving oversaturated towns and city centres could be a smart move to adjust.