Why the Public Turned Away from Its Taste for Pizza Hut
At one time, the popular pizza chain was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
Yet a declining number of customers are frequenting the restaurant currently, and it is reducing a significant portion of its UK locations after being acquired following financial trouble for the second occasion this year.
“We used to go Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she says “it's not a thing anymore.”
According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.
“How they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”
As grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. As have its locations, which are being sliced from 132 to 64.
The chain, in common with competitors, has also seen its costs go up. This spring, staffing costs rose due to increases in the legal wage floor and an rise in employer taxes.
Two diners explain they used to go at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's rates are close, explains an industry analyst.
Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to larger chains which specialize to this market.
“The rival chain has managed to dominate the takeaway pizza sector thanks to intensive advertising and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the analyst.
However for Chris and Joanne it is justified to get their date night delivered to their door.
“We predominantly have meals at home now instead of we eat out,” comments Joanne, echoing latest data that show a decrease in people going to quick-service eateries.
During the summer months, quick-service eateries saw a notable decrease in diners compared to last summer.
Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been offering premium oven-ready pizzas for years – some are even selling countertop ovens.
“Evolving preferences are also playing a factor in the popularity of fast-food chains,” comments the analyst.
The rising popularity of low-carb regimens has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.
As people dine out less frequently, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than premium.
The rise of high-quality pizzerias” over the last several years, for example boutique chains, has “fundamentally changed the general opinion of what excellent pie is,” notes the industry commentator.
“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she comments.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted Margherita 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 a pizza van based in a county in England comments: “People haven’t fallen out of love with pizza – they just want improved value.”
The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.
From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything innovative.
“There are now by-the-slice options, London pizza, thin crust, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”
He says Pizza Hut “must rebrand” as the youth don't have any emotional connection or attachment to the brand.
In recent years, Pizza Hut's market has been sliced up and spread to its fresher, faster competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when family finances are decreasing.
A senior executive of Pizza Hut's international markets said the buyout aimed “to safeguard our guest experience and save employment where possible”.
The executive stated its immediate priority was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the change.
But with significant funds going into operating its locations, it probably cannot to invest too much in its off-premise division because the sector is “difficult and using existing third-party platforms comes at a cost”, commentators say.
However, it's noted, cutting its costs by leaving crowded locations could be a effective strategy to adjust.