How the Nation Lost Interest in Its Appetite for Pizza Hut
Once, Pizza Hut was the top choice for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
However fewer patrons are visiting the brand currently, and it is closing 50% of its British locations after being bought out of administration for the second instance this year.
I remember going Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's not a thing anymore.”
For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now not-so-hot.
“The way they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”
Because food prices have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its outlets, which are being sliced from 132 to a smaller figure.
The company, like many others, has also faced its operating costs rise. Earlier this year, staffing costs jumped due to rises in minimum wages and an increase in employer social security payments.
A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
Depending on your choices, Pizza Hut and Domino's costs are comparable, notes an industry analyst.
While Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to major competitors which specialize to the delivery sector.
“Domino's has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” notes the specialist.
But for the couple it is acceptable to get their date night delivered to their door.
“We absolutely dine at home now rather than we eat out,” explains one of the diners, echoing recent statistics that show a decline in people going to casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the year before.
There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have retailers been providing premium oven-ready pizzas for quite a while – some are even offering pizza-making appliances.
“Shifts in habits are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.
The growing trend of low-carb regimens has increased sales at chicken shops, while hitting sales of dough-based meals, he adds.
Because people go out to eat not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more retro than upmarket.
The “explosion of premium pizza outlets” over the last decade and a half, such as popular brands, has “dramatically shifted the general opinion of what excellent pie is,” says the industry commentator.
“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns a small business based in a regional area says: “The issue isn’t that fallen out of love with pizza – they just want improved value.”
Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.
From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything fresh.
“There are now slice concepts, artisanal styles, thin crust, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”
He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the chain.
In recent years, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which experts say is tough at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the buyout aimed “to protect our dining experience and protect jobs where possible”.
He said its key goal was to continue operating at the surviving locations and off-premise points and to help employees through the transition.
But with so much money going into running its restaurants, it may be unable to spend heavily in its off-premise division because the sector is “complicated and working with existing delivery apps comes at a cost”, commentators say.
But, he adds, cutting its costs by exiting oversaturated towns and city centres could be a effective strategy to adjust.