How the Nation Turned Away from Its Craving for Pizza Hut
At one time, the popular pizza chain was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
However fewer patrons are frequenting the brand these days, and it is closing 50% of its British locations after being rescued from insolvency for the second instance this year.
“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's not a thing anymore.”
In the view of a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How can they?’”
Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its locations, which are being reduced from over 130 to a smaller figure.
The company, in common with competitors, has also seen its operating costs increase. Earlier this year, labor expenses jumped due to higher minimum pay and an higher rate of employer social security payments.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
Depending on your order, Pizza Hut and Domino's rates are similar, notes a food expert.
Although Pizza Hut has takeaway and deliveries through external services, it is losing out to big rivals which focus exclusively to this market.
“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the original prices are quite high,” says the analyst.
However for the couple it is worth it to get their evening together delivered to their door.
“We definitely eat at home now instead of we eat out,” comments the female customer, echoing current figures that show a decline in people going to casual and fast-food restaurants.
Over the summer, informal dining venues saw a notable decrease in patrons compared to the year before.
There is also one more competitor to ordered-in pies: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have supermarkets been providing good-standard prepared pies for years – some are even promoting pizza-making appliances.
“Shifts in habits are also having an impact in the success of quick-service brands,” says the analyst.
The increased interest of high protein diets has driven sales at poultry outlets, while hitting sales of dough-based meals, he notes.
Because people go out to eat more rarely, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than premium.
The “explosion of premium pizza outlets” over the last decade and a half, such as boutique chains, has “fundamentally changed the general opinion of what good pizza is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a small business based in a regional area says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with new customer habits.
At Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.
“There are now by-the-slice options, regional varieties, New Haven-style, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pizza-loving consumer to discover.”
The owner says Pizza Hut “should transform” as newer generations don't have any emotional connection or attachment to the company.
In recent years, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are shrinking.
A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and save employment where possible”.
The executive stated its key goal was to keep running at the open outlets and takeaway hubs and to support colleagues through the restructure.
Yet with significant funds going into operating its locations, it likely can't afford to invest too much in its off-premise division because the market is “complex and partnering with existing third-party platforms comes at a cost”, experts say.
Still, experts suggest, lowering overhead by leaving competitive urban areas could be a effective strategy to adjust.