Why the Country Lost Its Craving for the Pizza Hut Chain

In the past, Pizza Hut was the top choice for parents and children to feast on its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

Yet fewer patrons are visiting the brand nowadays, and it is closing half of its British locations after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their all-you-can-eat and their salad bar, it seems as if they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its outlets, which are being reduced from 132 to a smaller figure.

The business, similar to other firms, has also seen its costs go up. In April this year, staffing costs jumped due to higher minimum pay and an higher rate of employer social security payments.

Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's costs are comparable, notes an industry analyst.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to larger chains which focus exclusively to this market.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the original prices are quite high,” notes 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 instead of we eat out,” comments Joanne, matching current figures that show a decline in people visiting casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

There is also another rival to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have retailers been providing good-standard oven-ready pizzas for quite a while – some are even promoting countertop ovens.

“Evolving preferences are also having an impact in the performance of casual eateries,” says the expert.

The rising popularity of high protein diets has increased sales at poultry outlets, while hitting sales of dough-based meals, he adds.

Since people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the consumer view of what quality pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.

From the perspective of a small pizza brand in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are slice concepts, artisanal styles, New Haven-style, fermented dough, Neapolitan, rectangular – it's a delightful challenge for a pie fan to explore.”

Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the chain.

In recent years, Pizza Hut's customer base has been divided and distributed to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is challenging at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and retain staff where possible”.

It was explained its key goal was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

But with significant funds going into maintaining its outlets, it may be unable to spend heavily in its delivery service because the market is “complex and using existing third-party platforms comes at a cost”, commentators say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a smart move to evolve.

John Thomas
John Thomas

Seorang analis sepak bola berpengalaman yang fokus pada liga-liga Eropa, khususnya Championship Inggris.