Why the Public Lost Interest in Its Taste for Pizza Hut
In the past, 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 make-your-own dessert.
Yet fewer diners are choosing the chain nowadays, and it is shutting down a significant portion of its UK restaurants after being acquired following financial trouble for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she comments “it's fallen out of favor.”
For 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.
“The way they do their buffet and their salad station, it appears that they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”
As food prices have soared, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its restaurants, which are being sliced from 132 to a smaller figure.
The chain, in common with competitors, has also seen its operating costs rise. This spring, employee wages jumped due to increases in the legal wage floor and an increase in employer taxes.
Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “too expensive”.
According to your choices, Pizza Hut and Domino's rates are close, explains a culinary author.
While Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to big rivals which focus exclusively to off-premise dining.
“Domino's has taken over the takeaway pizza sector thanks to strong promotions and constantly running deals that make customers feel like they're getting a bargain, when in reality the original prices are quite high,” explains the expert.
But for Chris and Joanne it is justified to get their date night sent directly.
“We definitely eat at home now rather than we eat out,” says one of the diners, reflecting current figures that show a decrease in people visiting informal dining spots.
During the summer months, quick-service eateries saw a notable decrease in patrons compared to the previous year.
There is also a further alternative to ordered-in pies: the frozen or fresh pizza.
Will Hawkley, senior partner at a major consultancy, explains that not only have retailers been offering high-quality prepared pies for years – some are even promoting home-pizza ovens.
“Lifestyle changes are also playing a factor in the performance of fast-food chains,” states the analyst.
The increased interest of low-carb regimens has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.
Because people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more dated than premium.
The growth of high-quality pizzerias” over the last several years, for example boutique chains, has “fundamentally changed the consumer view of what excellent pie is,” explains the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
The owner says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.
At an independent chain in a UK location, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything new.
“Currently available are by-the-slice options, London pizza, thin crust, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pie fan to explore.”
He says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the chain.
Gradually, Pizza Hut's share has been divided and allocated to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when household budgets are tightening.
A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our customer service and retain staff where possible”.
The executive stated its immediate priority was to maintain service at the surviving locations and delivery sites and to support colleagues through the transition.
However with significant funds going into operating its locations, it may be unable to spend heavily in its delivery service because the industry is “difficult and using existing third-party platforms comes at a cost”, analysts say.
Still, experts suggest, reducing expenses by withdrawing from crowded locations could be a good way to evolve.