Why the Nation Turned Away from Its Taste for Pizza Hut
At one time, the popular pizza chain was the favorite for groups and loved ones to enjoy its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
However fewer diners are choosing the brand these days, and it is shutting down a significant portion of its UK outlets after being bought out of administration for the second time this year.
It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”
In the view of young customer Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now outdated.
“The way they do their buffet and their salad station, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How can they?’”
As ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to run. As have its outlets, which are being cut from over 130 to a smaller figure.
The business, like many others, has also faced its expenses go up. Earlier this year, labor expenses jumped due to rises in minimum wages and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.
Based on your choices, Pizza Hut and Domino's rates are similar, says a food expert.
Although Pizza Hut provides off-premise options through external services, 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 intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the expert.
But for Chris and Joanne it is acceptable to get their date night sent directly.
“We predominantly have meals at home now instead of we eat out,” says one of the diners, matching latest data that show a drop in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.
Additionally, a further alternative to ordered-in pies: the supermarket pizza.
An industry leader, global lead for leisure at an advisory group, points out that not only have supermarkets been selling good-standard oven-ready pizzas for a long time – some are even selling pizza-making appliances.
“Evolving preferences are also having an impact in the performance of fast-food chains,” comments the analyst.
The rising popularity of low-carb regimens has driven sales at chicken shops, while affecting sales of dough-based meals, he adds.
Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than premium.
The rise of premium pizza outlets” over the last several years, including boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” explains the food expert.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she states.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.
At an independent chain in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything fresh.
“You now have by-the-slice options, London pizza, thin crust, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pizza enthusiast to explore.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the brand.
Gradually, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to charge more – which industry analysts say is difficult at a time when family finances are decreasing.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and save employment where possible”.
He said its first focus was to keep running at the open outlets and delivery sites and to help employees through the change.
Yet with so much money going into maintaining its outlets, it likely can't afford to invest too much in its takeaway operation because the industry is “complex and using existing delivery apps comes at a expense”, commentators say.
But, he adds, cutting its costs by leaving competitive urban areas could be a smart move to adapt.