Why the Nation Turned Away from Its Taste for the Pizza Hut Chain
At one time, the popular pizza chain was the favorite for parents and children to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.
But a declining number of diners are visiting the chain these days, and it is reducing a significant portion of its UK locations after being rescued from insolvency for the second occasion this year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”
According to young customer Martina, certain features Pizza Hut has been famous for since it launched in the UK in the 1970s are now outdated.
“How they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
As food prices have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its restaurants, which are being cut from 132 to a smaller figure.
The business, like many others, has also experienced its expenses go up. This spring, staffing costs rose due to rises in minimum wages and an rise in employer social security payments.
Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.
Based on your choices, Pizza Hut and Domino's rates are comparable, explains a food expert.
Even though Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to major competitors which solely cater to off-premise dining.
“Another pizza company 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 base costs are on the higher side,” notes the expert.
However for Chris and Joanne it is acceptable to get their evening together delivered to their door.
“We definitely eat at home now rather than we eat out,” comments one of the diners, echoing recent statistics that show a drop in people frequenting quick-service eateries.
During the summer months, informal dining venues saw a six percent decline in diners compared to the previous year.
Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have retailers been selling good-standard oven-ready pizzas for quite a while – some are even selling home-pizza ovens.
“Evolving preferences are also playing a factor in the performance of fast-food chains,” comments the analyst.
The increased interest of protein-rich eating plans has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he notes.
As people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.
The growth of premium pizza outlets” over the last decade and a half, such as popular brands, has “completely altered the public's perception of what excellent pie is,” explains the culinary analyst.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she states.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates Smokey Deez based in a county in England explains: “People haven’t lost interest in pizza – they just want improved value.”
Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with evolving tastes.
According to a small pizza brand in a UK location, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything fresh.
“You now have individual slices, regional varieties, new haven, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to explore.”
Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or allegiance to the company.
Gradually, Pizza Hut's share has been sliced up and spread to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when personal spending are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and protect jobs where possible”.
The executive stated its immediate priority was to continue operating at the surviving locations and off-premise points and to help employees through the transition.
Yet with large sums going into running its restaurants, it may be unable to allocate significant resources in its takeaway operation because the market is “difficult and partnering with existing external services comes at a expense”, analysts say.
Still, experts suggest, cutting its costs by withdrawing from oversaturated towns and city centres could be a good way to adjust.