Why the Nation Turned Away from Its Taste for the Pizza Hut Chain
Once, Pizza Hut 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.
But a declining number of customers are visiting the chain these days, and it is shutting down 50% of its British locations after being acquired following financial trouble for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,â says a young adult. âIt was a tradition, you'd go on a Sunday â make a day of it.â However, at present, in her mid-twenties, she comments âit's no longer popular.â
In the view of young customer Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.
âThe way they do their buffet and their salad station, it feels like they are lowering standards and have inferior offerings... They offer so much food and you're like âHow is that possible?ââ
As grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its restaurants, which are being reduced from a large number to just over 60.
The company, in common with competitors, has also seen its expenses go up. In April this year, labor expenses increased due to higher minimum pay and an higher rate of employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date âoccasionallyâ, but now they order in a rival chain and think Pizza Hut is ânot good valueâ.
Depending on your choices, Pizza Hut and Domino's prices are similar, explains a food expert.
While Pizza Hut has pickup and delivery through third-party apps, it is falling behind to big rivals which solely cater to the delivery sector.
âAnother pizza company has taken over 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,â explains the expert.
However for these customers it is worth it to get their date night delivered to their door.
âWe predominantly have meals at home now rather than we eat out,â comments the female customer, matching current figures that show a decrease in people going to quick-service eateries.
During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to the previous year.
Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.
Will Hawkley, head of leisure and hospitality at an advisory group, explains that not only have retailers been offering high-quality ready-to-bake pizzas for years â some are even selling countertop ovens.
âShifts in habits are also having an impact in the popularity of quick-service brands,â states the analyst.
The rising popularity of high protein diets has increased sales at poultry outlets, while reducing sales of carb-heavy pizza, he notes.
Because people dine out more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than premium.
The growth of high-quality pizzeriasâ over the last 10 to 15 years, including boutique chains, has âfundamentally changed the public's perception of what good pizza is,â explains the food expert.
âA crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,â she says.
âWho would choose to spend ÂŁ17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
âIt's an easy choice.â
An independent operator, who operates a pizza van based in a regional area comments: âThe issue isnât that lost interest in pizza â they just want better pizza for their money.â
The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.
According to Pizzarova in a city in southwest England, the founder says the pizza market is diversifying but Pizza Hut has not provided anything new.
âCurrently available are individual slices, artisanal styles, thin crust, fermented dough, Neapolitan, Detroit â it's a wonderful array for a pizza enthusiast to discover.â
The owner says Pizza Hut âmust rebrandâ as newer generations don't have any emotional connection or allegiance to the chain.
In recent years, Pizza Hut's market has been sliced up and allocated to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to raise prices â which industry analysts say is tough at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the rescue aimed âto safeguard our customer service and save employment where possibleâ.
It was explained its key goal was to continue operating at the surviving locations and off-premise points and to assist staff through the restructure.
Yet with large sums going into running its restaurants, it may be unable to invest too much in its takeaway operation because the sector is âcomplicated and partnering with existing external services comes at a priceâ, analysts say.
However, it's noted, reducing expenses by exiting crowded locations could be a effective strategy to adjust.