Why the Public Lost Interest in Its Taste for Pizza Hut
Once, the popular pizza chain was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.
But fewer patrons are choosing the brand these days, and it is shutting down 50% of its British restaurants after being bought out of administration for the second instance this calendar year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's fallen out of favor.”
For young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now not-so-hot.
“How they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”
As ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become quite costly to run. As have its outlets, which are being cut from a large number to 64.
The company, in common with competitors, has also seen its costs go up. In April this year, employee wages rose due to increases in the legal wage floor and an rise in employer national insurance contributions.
Two diners explain they used to go at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.
Depending on your order, Pizza Hut and Domino's costs are close, says a culinary author.
While Pizza Hut has pickup and delivery through third-party apps, it is falling behind to major competitors which focus exclusively to the delivery sector.
“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the analyst.
Yet for Chris and Joanne it is justified to get their special meal brought to their home.
“We predominantly have meals at home now rather than we eat out,” comments Joanne, matching latest data that show a decline in people visiting informal dining spots.
During the summer months, quick-service eateries saw a 6% drop in patrons compared to last summer.
Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, senior partner at a leading firm, notes that not only have grocery stores been providing high-quality prepared pies for quite a while – some are even promoting home-pizza ovens.
“Evolving preferences are also playing a factor in the success of fast-food chains,” comments the analyst.
The increased interest of high protein diets has driven sales at chicken shops, while hitting sales of dough-based meals, he notes.
Since people visit restaurants less frequently, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than upmarket.
The growth of artisanal pizza places” over the last decade and a half, including new entrants, has “fundamentally changed the general opinion of what good pizza is,” explains the food expert.
“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared Margherita 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 a small business based in a regional area says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.
From the perspective of an independent chain in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything new.
“There are now by-the-slice options, artisanal styles, thin crust, artisan base, Neapolitan, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”
Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the chain.
Gradually, Pizza Hut's customer base has been sliced up and distributed to its more modern, agile alternatives. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are decreasing.
The leadership of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and retain staff where possible”.
It was explained its first focus was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the transition.
However with large sums going into maintaining its outlets, it likely can't afford to allocate significant resources in its delivery service because the sector is “complicated and working with existing delivery apps comes at a price”, experts say.
However, it's noted, lowering overhead by exiting oversaturated towns and city centres could be a effective strategy to evolve.