How the Country Turned Away from Its Taste for the Pizza Hut Chain
Once, 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.
But fewer patrons are choosing the restaurant these days, and it is shutting down half of its UK outlets after being rescued from insolvency for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's fallen out of favor.”
According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How is that possible?’”
Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to run. As have its restaurants, which are being sliced from a large number to a smaller figure.
The company, similar to other firms, has also experienced its operating costs increase. In April this year, labor expenses increased due to higher minimum pay and an higher rate of employer taxes.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's prices are close, says a culinary author.
While Pizza Hut provides takeaway and deliveries through delivery platforms, it is falling behind to major competitors which solely cater to this market.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.
However for the couple it is worth it to get their evening together sent directly.
“We predominantly have meals at home now more than we eat out,” comments the female customer, echoing latest data that show a decline in people frequenting informal dining spots.
During the summer months, quick-service eateries saw a notable decrease in diners compared to last summer.
Moreover, a further alternative to pizza from eateries: the cook-at-home oven pizza.
An industry leader, senior partner at an advisory group, notes that not only have grocery stores been selling premium oven-ready pizzas for quite a while – some are even promoting countertop ovens.
“Evolving preferences are also having an impact in the popularity of casual eateries,” states the analyst.
The increased interest of high protein diets has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.
As people dine out less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.
The growth of artisanal pizza places” over the last several years, including new entrants, has “completely altered the general opinion of what excellent pie is,” explains the culinary analyst.
“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price 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 regional area comments: “People haven’t stopped liking pizza – they just want better pizza for their money.”
Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.
According to an independent chain in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything innovative.
“You now have individual slices, artisanal styles, thin crust, artisan base, wood-fired, deep-dish – it's a wonderful array for a pie fan to discover.”
Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or attachment to the chain.
Gradually, Pizza Hut's market has been divided and allocated to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when family finances are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to protect our guest experience and save employment where possible”.
It was explained its key goal was to continue operating at the surviving locations and off-premise points and to support colleagues through the restructure.
However with large sums going into running its restaurants, it probably cannot to invest too much in its takeaway operation because the industry is “difficult and working with existing external services comes at a expense”, commentators say.
However, it's noted, cutting its costs by exiting competitive urban areas could be a smart move to evolve.