How the Public Lost Its Craving for the Pizza Hut Chain
In the past, Pizza Hut was the favorite for families and friends to enjoy its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
But a declining number of patrons are visiting the brand currently, and it is reducing half of its UK outlets after being bought out of administration for the second instance this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's fallen out of favor.”
According to young customer Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.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 inferior offerings... They provide so much food and you're like ‘How?’”
Because food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its restaurants, which are being sliced from over 130 to a smaller figure.
The company, similar to other firms, has also experienced its operating costs rise. In April this year, employee wages jumped due to higher minimum pay and an rise in employer social security payments.
Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.
Based on your selection, 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 big rivals which solely cater to off-premise dining.
“Domino's has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.
But for these customers it is acceptable to get their date night sent directly.
“We predominantly have meals at home now rather than we eat out,” explains one of the diners, echoing recent statistics that show a decline in people frequenting quick-service eateries.
Over the summer, quick-service eateries saw a notable decrease in patrons compared to the previous year.
There is also a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have grocery stores been providing good-standard oven-ready pizzas for quite a while – some are even selling countertop ovens.
“Evolving preferences are also having an impact in the success of casual eateries,” comments the analyst.
The increased interest of high protein diets has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.
Because people visit restaurants more rarely, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.
The “explosion of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “completely altered the general opinion of what excellent pie is,” notes the food expert.
“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who runs Smokey Deez based in Suffolk explains: “It's not that stopped liking pizza – they just want higher quality at a fair price.”
The owner says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with changing preferences.
From the perspective of Pizzarova in a city in southwest England, the proprietor says the sector is expanding but Pizza Hut has neglected to introduce anything new.
“You now have slice concepts, regional varieties, thin crust, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pizza-loving consumer to discover.”
He says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or attachment to the brand.
Gradually, Pizza Hut's market has been sliced up and spread to its fresher, faster alternatives. To maintain its costly operations, it would have to increase costs – which experts say is tough at a time when personal spending are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and protect jobs where possible”.
He said its immediate priority was to continue operating at the open outlets and delivery sites and to help employees through the change.
However with large sums going into maintaining its outlets, it likely can't afford to spend heavily in its takeaway operation because the sector is “difficult and using existing external services comes at a expense”, experts say.
However, it's noted, cutting its costs by exiting competitive urban areas could be a effective strategy to evolve.