Why the Public Lost Interest in Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
However a declining number of customers are choosing the chain currently, and it is closing 50% of its UK restaurants after being acquired following financial trouble for the second occasion this year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”
For young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.
“How they do their buffet and their salad bar, it feels like they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How can they?’”
As grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its locations, which are being sliced from over 130 to 64.
The company, in common with competitors, has also faced its costs rise. Earlier this year, employee wages jumped due to increases in the legal wage floor and an increase in employer taxes.
A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “very overpriced”.
According to your order, Pizza Hut and Domino's rates are close, says a culinary author.
Even though Pizza Hut has pickup and delivery through delivery platforms, it is losing out to major competitors which focus exclusively to off-premise dining.
“Domino's has taken over the delivery market thanks to strong promotions and constantly running deals that make customers feel like they're saving money, when in reality the base costs are quite high,” says the analyst.
Yet for these customers it is justified to get their special meal sent directly.
“We absolutely dine at home now instead of we eat out,” comments one of the diners, reflecting recent statistics that show a decrease in people frequenting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
Will Hawkley, senior partner at a leading firm, notes that not only have grocery stores been selling premium ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.
“Lifestyle changes are also playing a factor in the success of fast-food chains,” comments the analyst.
The rising popularity of protein-rich eating plans has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he continues.
Because people dine out less frequently, they may look for a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.
The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “completely altered the public's perception of what excellent pie is,” explains the culinary analyst.
“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 decline,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who runs Smokey Deez based in Suffolk says: “It's not that fallen out of love with pizza – they just want improved value.”
He says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.
According to Pizzarova in Bristol, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.
“You now have slice concepts, London pizza, new haven, sourdough, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”
He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or attachment to the company.
Gradually, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster alternatives. To sustain its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.
The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our guest experience and retain staff where possible”.
He said its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the restructure.
However with so much money going into running its restaurants, it may be unable to spend heavily in its off-premise division because the market is “complex and using existing delivery apps comes at a price”, experts say.
But, he adds, lowering overhead by leaving oversaturated towns and city centres could be a smart move to adapt.