Why the Country Turned Away from Its Appetite for Pizza Hut
At one time, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, endless salad selection, and make-your-own dessert.
But a declining number of patrons are choosing the chain currently, and it is shutting down a significant portion of its British outlets after being acquired following financial trouble for the second time this year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's not a thing anymore.”
According to young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.
“The manner in which they do their buffet and their salad bar, it seems as if they are cutting corners and have lower standards... They provide so much food and you're like ‘How is that possible?’”
Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to maintain. As have its locations, which are being cut from over 130 to a smaller figure.
The business, similar to other firms, has also faced its operating costs rise. Earlier this year, employee wages increased due to higher minimum pay and an increase in employer social security payments.
A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.
According to your selection, Pizza Hut and Domino's rates are similar, explains an industry analyst.
Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to big rivals which focus exclusively to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” notes the specialist.
However for Chris and Joanne it is acceptable to get their special meal delivered to their door.
“We predominantly have meals at home now instead of we eat out,” comments the female customer, reflecting latest data that show a drop in people going to informal dining spots.
In the warmer season, informal dining venues saw a six percent decline in patrons compared to last summer.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
A hospitality expert, senior partner at a leading firm, notes that not only have grocery stores been offering good-standard ready-to-bake pizzas for years – some are even offering countertop ovens.
“Evolving preferences are also contributing in the popularity of quick-service brands,” says Mr. Hawkley.
The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.
Since people go out to eat not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.
The rise of premium pizza outlets” over the last decade and a half, including new entrants, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she states.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want improved value.”
He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.
From the perspective of an independent chain in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything innovative.
“Currently available are individual slices, regional varieties, thin crust, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the chain.
Gradually, Pizza Hut's share has been sliced up and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is challenging at a time when household budgets are shrinking.
A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and save employment where possible”.
The executive stated its first focus was to keep running at the open outlets and delivery sites and to help employees through the restructure.
However with so much money going into running its restaurants, it probably cannot to spend heavily in its off-premise division because the industry is “complicated and partnering with existing external services comes at a cost”, commentators say.
But, he adds, reducing expenses by exiting crowded locations could be a smart move to evolve.