How the Public Turned Away from Its Taste for the Pizza Hut Chain
Once, the popular pizza chain was the favorite for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.
But fewer diners are visiting the restaurant nowadays, and it is reducing half of its British locations after being bought out of administration for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she says “it's no longer popular.”
In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”
As ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its restaurants, which are being cut from a large number to a smaller figure.
The business, like many others, has also faced its expenses rise. This spring, staffing costs jumped due to higher minimum pay and an increase in employer national insurance contributions.
A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's costs are comparable, explains a food expert.
Although Pizza Hut does offer takeaway and deliveries through delivery platforms, it is falling behind to major competitors which focus exclusively to the delivery sector.
“The rival chain has taken over 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 original prices are quite high,” notes the expert.
But for these customers it is acceptable to get their date night sent directly.
“We absolutely dine at home now instead of we eat out,” explains the female customer, matching current figures that show a drop in people visiting informal dining spots.
In the warmer season, informal dining venues saw a six percent decline in patrons compared to last summer.
Moreover, a further alternative to pizza from eateries: the cook-at-home oven pizza.
An industry leader, senior partner at a major consultancy, notes that not only have supermarkets been selling good-standard oven-ready pizzas for a long time – some are even promoting pizza-making appliances.
“Lifestyle changes are also playing a factor in the popularity of casual eateries,” comments Mr. Hawkley.
The growing trend of high protein diets has increased sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he continues.
Because people visit restaurants less frequently, they may seek out a more premium experience, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than upmarket.
The rise of artisanal pizza places” over the last decade and a half, including boutique chains, has “fundamentally changed the public's perception of what good pizza is,” explains the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who owns Smokey Deez based in a county in England comments: “People haven’t fallen out of love with pizza – they just want improved value.”
Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.
From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.
“There are now individual slices, regional varieties, new haven, artisan base, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the company.
In recent years, Pizza Hut's share has been divided and spread to its fresher, faster alternatives. To keep up its costly operations, it would have to increase costs – which commentators say is tough at a time when personal spending are decreasing.
The leadership of Pizza Hut's global operations said the rescue aimed “to protect our customer service and protect jobs where possible”.
It was explained its immediate priority was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the transition.
Yet with large sums going into operating its locations, it may be unable to allocate significant resources in its off-premise division because the sector is “complex and partnering with existing delivery apps comes at a price”, analysts say.
But, he adds, lowering overhead by leaving crowded locations could be a smart move to adjust.