Why the Nation Turned Away from Its Taste for Pizza Hut
At one time, Pizza Hut was the top choice for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
But not as many diners are frequenting the brand currently, and it is shutting down a significant portion of its UK outlets after being rescued from insolvency for the second time this year.
It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's not a thing anymore.”
According to young customer Martina, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.
“How they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”
Since food prices have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to run. The same goes for its outlets, which are being sliced from over 130 to just over 60.
The company, similar to other firms, has also faced its expenses go up. In April this year, employee wages jumped due to rises in minimum wages and an increase in employer social security payments.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “too expensive”.
Based on your order, Pizza Hut and Domino's rates are close, explains an industry analyst.
Although Pizza Hut does offer off-premise options through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.
“Domino's has taken over the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.
But for these customers it is justified to get their evening together delivered to their door.
“We absolutely dine at home now more than we eat out,” comments one of the diners, reflecting current figures that show a drop in people frequenting casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a 6% drop in customers compared to the year before.
Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, senior partner at a leading firm, points out that not only have supermarkets been selling good-standard prepared pies for years – some are even promoting home-pizza ovens.
“Evolving preferences are also contributing in the success of fast-food chains,” states the analyst.
The increased interest of low-carb regimens has driven sales at chicken shops, while reducing sales of dough-based meals, he continues.
Because people dine out less frequently, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more retro than premium.
The rise of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the general opinion of what excellent pie is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who owns a small business based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want improved value.”
Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
From the perspective of Pizzarova in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything new.
“Currently available are by-the-slice options, artisanal styles, new haven, fermented dough, wood-fired, rectangular – it's a wonderful array for a pie fan to explore.”
The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the brand.
In recent years, Pizza Hut's share has been fragmented and spread to its fresher, faster rivals. To sustain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when personal spending are decreasing.
The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining experience and retain staff where possible”.
It was explained its immediate priority was to continue operating at the open outlets and off-premise points and to help employees through the restructure.
However with so much money going into running its restaurants, it may be unable to invest too much in its delivery service because the market is “complicated and working with existing external services comes at a price”, commentators say.
However, it's noted, cutting its costs by exiting competitive urban areas could be a smart move to evolve.