Why the Nation Lost Its Taste for Pizza Hut
At one time, the popular pizza chain was the top choice for families and friends to enjoy its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
Yet a declining number of patrons are choosing the chain these days, and it is shutting down a significant portion of its UK restaurants after being rescued from insolvency for the second occasion this year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's not a thing anymore.”
In the view of 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.
“How they do their buffet and their salad bar, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”
As ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being sliced from 132 to a smaller figure.
The business, like many others, has also faced its operating costs go up. Earlier this year, employee wages rose due to rises in minimum wages and an increase in employer national insurance contributions.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.
Depending on your choices, Pizza Hut and Domino's rates are similar, explains an industry analyst.
Even though Pizza Hut provides off-premise options through external services, it is missing out to big rivals which solely cater to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” explains the specialist.
But for these customers it is worth it to get their evening together delivered to their door.
“We predominantly have meals at home now more than we eat out,” explains Joanne, reflecting current figures that show a decline in people frequenting quick-service eateries.
During the summer months, quick-service eateries saw a notable decrease in patrons compared to the previous year.
Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.
A hospitality expert, senior partner at a leading firm, points out that not only have supermarkets been offering high-quality prepared pies for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also playing a factor in the success of fast-food chains,” comments the expert.
The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of high-carbohydrate options, he notes.
Because people dine out not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.
The growth of premium pizza outlets” over the last 10 to 15 years, for example new entrants, has “completely altered the general opinion of what good pizza is,” explains the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.
At a small pizza brand in a UK location, the founder says the pizza market is diversifying but Pizza Hut has failed to offer anything new.
“You now have slice concepts, artisanal styles, new haven, sourdough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”
He says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the chain.
Over time, Pizza Hut's market has been divided and spread to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to increase costs – which industry analysts say is difficult at a time when family finances are shrinking.
The leadership of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
It was explained its first focus was to continue operating at the surviving locations and off-premise points and to support colleagues through the change.
Yet with so much money going into maintaining its outlets, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “complex and partnering with existing delivery apps comes at a cost”, experts say.
But, he adds, lowering overhead by leaving oversaturated towns and city centres could be a smart move to adjust.