Why the Public Turned Away from Its Taste for the Pizza Hut Chain
At one time, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
But a declining number of patrons are frequenting the restaurant currently, and it is reducing half of its British locations after being bought out of administration for the second instance this calendar year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's not a thing anymore.”
In the view of 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How?’”
Since grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its restaurants, which are being cut from 132 to 64.
The business, like many others, has also experienced its expenses increase. In April this year, employee wages increased due to rises in minimum wages and an increase in employer taxes.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Based on your selection, Pizza Hut and Domino's prices are comparable, says an industry analyst.
Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is losing out to big rivals which focus exclusively to the delivery sector.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.
But for Chris and Joanne it is acceptable to get their date night delivered to their door.
“We definitely eat at home now rather than we eat out,” says Joanne, reflecting latest data that show a decrease in people frequenting informal dining spots.
In the warmer season, informal dining venues saw a 6% drop in customers compared to the year before.
Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.
An industry leader, global lead for leisure at an advisory group, points out that not only have grocery stores been selling premium oven-ready pizzas for a long time – some are even selling countertop ovens.
“Evolving preferences are also having an impact in the success of fast-food chains,” comments the analyst.
The rising popularity of protein-rich eating plans has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he continues.
As people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than upmarket.
The rise of artisanal pizza places” over the last several years, such as new entrants, has “fundamentally changed the consumer view of what quality pizza is,” notes the culinary analyst.
“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in a county in England comments: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
At Pizzarova in a UK location, the founder says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.
“Currently available are slice concepts, artisanal styles, New Haven-style, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”
Jack says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or allegiance to the company.
Over time, Pizza Hut's market has been sliced up and spread to its more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is tough at a time when personal spending are decreasing.
The managing director of Pizza Hut's international markets said the buyout aimed “to ensure our dining experience and save employment where possible”.
He said its first focus was to maintain service at the open outlets and delivery sites and to assist staff through the restructure.
Yet with large sums going into running its restaurants, it may be unable to invest too much in its takeaway operation because the sector is “complex and working with existing delivery apps comes at a cost”, commentators say.
However, it's noted, cutting its costs by leaving competitive urban areas could be a smart move to evolve.