How the Country Lost Interest in Its Craving for the Pizza Hut Chain
In the past, Pizza Hut was the go-to for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.
However a declining number of customers are choosing the restaurant nowadays, and it is reducing a significant portion of its British restaurants after being bought out of administration for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she comments “it's not a thing anymore.”
According to young customer Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.
“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How can they?’”
Since food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its restaurants, which are being cut from 132 to just over 60.
The company, like many others, has also faced its operating costs go up. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise 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 get delivery from Domino's and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's costs are close, notes an industry analyst.
While Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to big rivals which focus exclusively to this market.
“Domino's has taken over the delivery market thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” explains the expert.
However for these customers it is acceptable to get their special meal sent directly.
“We predominantly have meals at home now instead of we eat out,” explains Joanne, matching latest data that show a decrease in people frequenting quick-service eateries.
Over the summer, quick-service eateries saw a six percent decline in customers compared to the previous year.
Additionally, one more competitor to ordered-in pies: the frozen or fresh pizza.
A hospitality expert, global lead for leisure at a major consultancy, explains that not only have grocery stores been providing good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.
“Evolving preferences are also having an impact in the success of quick-service brands,” states Mr. Hawkley.
The rising popularity of low-carb regimens has boosted sales at chicken shops, while affecting sales of dough-based meals, he notes.
Because people dine out not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more retro than premium.
The rise of high-quality pizzerias” over the last several years, such as boutique chains, has “completely altered the consumer view of what excellent pie is,” explains the food expert.
“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in a county in England says: “It's not that stopped liking pizza – they just want improved value.”
He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
At an independent chain in a UK location, the founder says the sector is broadening but Pizza Hut has failed to offer anything new.
“Currently available are individual slices, London pizza, New Haven-style, sourdough, traditional Italian, Detroit – it's a delightful challenge for a pizza-loving consumer to explore.”
The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the brand.
In recent years, Pizza Hut's share has been sliced up and spread to its fresher, faster rivals. To sustain its costly operations, it would have to increase costs – which experts say is tough at a time when personal spending are shrinking.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our dining experience and save employment where possible”.
The executive stated its first focus was to continue operating at the open outlets and off-premise points and to assist staff through the restructure.
Yet with large sums going into operating its locations, it may be unable to spend heavily in its takeaway operation because the sector is “complicated and partnering with existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, reducing expenses by exiting competitive urban areas could be a good way to evolve.