Why the Country Lost Interest in Its Appetite for the Pizza Hut Chain
In the past, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.
But not as many patrons are frequenting the brand these days, and it is shutting down 50% of its British locations after being acquired following financial trouble for the second instance this year.
I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she states “it's not a thing anymore.”
For a diner in her twenties, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.
“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How is that possible?’”
As food prices have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. Similarly, its locations, which are being sliced from a large number to 64.
The business, in common with competitors, has also faced its operating costs rise. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer national insurance contributions.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's costs are comparable, says a food expert.
Even though Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to larger chains which solely cater to this market.
“Domino's has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the specialist.
However for these customers it is justified to get their date night brought to their home.
“We definitely eat at home now instead of we eat out,” comments one of the diners, echoing latest data that show a decline in people visiting casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.
Moreover, one more competitor to pizza from eateries: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have supermarkets been providing high-quality prepared pies for a long time – some are even promoting home-pizza ovens.
“Lifestyle changes are also playing a factor in the performance of fast-food chains,” states the analyst.
The growing trend of protein-rich eating plans has boosted sales at poultry outlets, while hitting sales of high-carbohydrate options, he continues.
As people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than luxurious.
The rise of high-quality pizzerias” over the last decade and a half, including popular brands, has “fundamentally changed the general opinion of what quality pizza is,” notes the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in Suffolk explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with new customer habits.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the industry is diversifying but Pizza Hut has not provided anything new.
“You now have by-the-slice options, regional varieties, New Haven-style, artisan base, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
He says Pizza Hut “must rebrand” as younger people don't have any fond memories or loyalty to the chain.
Gradually, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble competitors. To maintain its expensive staffing and restaurants, it would have to increase costs – which commentators say is challenging at a time when personal spending are shrinking.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our dining experience and retain staff where possible”.
It was explained its key goal was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the restructure.
Yet with large sums going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the industry is “complex and using existing delivery apps comes at a expense”, analysts say.
But, he adds, lowering overhead by exiting competitive urban areas could be a smart move to adjust.