Why the Country Lost Interest in Its Taste for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for families and friends to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.
However not as many diners are choosing the brand these days, and it is closing half of its UK locations after being bought out of administration for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “it's fallen out of favor.”
In the view of young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.
“The manner in which they do their buffet and their salad station, it appears that they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
Because food prices have risen sharply, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its locations, which are being sliced from a large number to a smaller figure.
The company, similar to other firms, has also seen its operating costs increase. Earlier this year, employee wages jumped due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's costs are close, says an industry analyst.
Although Pizza Hut does offer takeaway and deliveries through delivery platforms, it is missing out to major competitors which specialize to off-premise dining.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're saving money, when in reality the base costs are relatively expensive,” explains the expert.
But for Chris and Joanne it is acceptable to get their special meal brought to their home.
“We definitely eat at home now more than we eat out,” says one of the diners, echoing current figures that show a drop in people visiting informal dining spots.
Over the summer, quick-service eateries saw a 6% drop in customers compared to last summer.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
Will Hawkley, global lead for leisure at an advisory group, notes that not only have retailers been providing premium ready-to-bake pizzas for quite a while – some are even selling home-pizza ovens.
“Lifestyle changes are also playing a factor in the popularity of quick-service brands,” says the expert.
The growing trend of high protein diets has driven sales at poultry outlets, while affecting sales of dough-based meals, he continues.
Since people visit restaurants not as often, they may look for 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 dated than premium.
The growth of premium pizza outlets” over the last 10 to 15 years, for example new entrants, has “completely altered the general opinion of what quality pizza is,” says the industry commentator.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she says.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”
He says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
According to an independent chain in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything new.
“You now have by-the-slice options, regional varieties, new haven, artisan base, Neapolitan, deep-dish – it's a delightful challenge for a pizza enthusiast to try.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the brand.
In recent years, Pizza Hut's customer base has been fragmented and spread to its trendier, more nimble alternatives. To sustain its costly operations, it would have to increase costs – which commentators say is challenging at a time when family finances are shrinking.
The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and protect jobs where possible”.
It was explained its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.
Yet with so much money going into maintaining its outlets, it may be unable to invest too much in its delivery service because the industry is “difficult and using existing external services comes at a expense”, analysts say.
But, he adds, cutting its costs by withdrawing from oversaturated towns and city centres could be a good way to adapt.