How the Public Turned Away from Its Craving for Pizza Hut
Once, the popular pizza chain was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
But fewer customers are visiting the chain nowadays, and it is reducing a significant portion of its UK outlets after being bought out of administration for the second time this year.
It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”
For a diner in her twenties, some of the very things Pizza Hut has been recognized for since it launched in the UK in the seventies are now less appealing.
“The manner in which 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 provide so much food and you're like ‘How can they?’”
Since ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become quite costly to operate. The same goes for its restaurants, which are being sliced from over 130 to 64.
The company, in common with competitors, has also seen its expenses go up. In April this year, staffing costs increased due to increases in the legal wage floor and an increase in employer social security payments.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's costs are close, says a food expert.
Although Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to larger chains which specialize to off-premise dining.
“Another pizza company has succeeded in leading the takeaway pizza sector thanks to intensive advertising and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the specialist.
But for these customers it is acceptable to get their evening together delivered to their door.
“We definitely eat at home now more than we eat out,” explains Joanne, reflecting recent statistics that show a drop in people going to casual and fast-food restaurants.
Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.
Moreover, a further alternative to ordered-in pies: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have retailers been providing good-standard ready-to-bake pizzas for quite a while – some are even selling home-pizza ovens.
“Lifestyle changes are also contributing in the popularity of quick-service brands,” states the expert.
The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while affecting sales of carb-heavy pizza, he continues.
Since people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more retro than upmarket.
The growth of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “completely altered the general opinion of what quality pizza is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she says.
“Who would choose to spend nearly eighteen pounds 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?
“It's a no-brainer.”
A mobile pizza vendor, who runs a small business based in a county in England says: “It's not that lost interest in pizza – they just want improved value.”
He says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has not provided anything new.
“You now have by-the-slice options, regional varieties, new haven, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza enthusiast to discover.”
Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's share has been divided and allocated to its trendier, more nimble competitors. To sustain its costly operations, it would have to charge more – which experts say is challenging at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and retain staff where possible”.
It was explained its key goal was to maintain service at the open outlets and delivery sites and to assist staff through the transition.
Yet with so much money going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the market is “complex and partnering with existing delivery apps comes at a cost”, experts say.
Still, experts suggest, cutting its costs by leaving oversaturated towns and city centres could be a smart move to adapt.