How the Country Lost Interest in Its Craving for Pizza Hut
In the past, Pizza Hut was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
But not as many diners are frequenting the chain currently, and it is reducing 50% of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she comments “it's fallen out of favor.”
For a diner in her twenties, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now not-so-hot.
“The manner in which they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”
Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its locations, which are being cut from a large number to a smaller figure.
The chain, similar to other firms, has also faced its expenses rise. This spring, staffing costs rose due to higher minimum pay and an rise in employer social security payments.
Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.
Based on your order, Pizza Hut and Domino's costs are close, notes an industry analyst.
Although Pizza Hut provides off-premise options through external services, it is losing out to major competitors which solely cater to the delivery sector.
“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the specialist.
But for the couple it is acceptable to get their special meal sent directly.
“We absolutely dine at home now instead of we eat out,” says Joanne, matching latest data that show a decline in people visiting informal dining spots.
Over the summer, informal dining venues saw a six percent decline in customers compared to last summer.
There is also another rival to ordered-in pies: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have retailers been selling high-quality prepared pies for quite a while – some are even offering countertop ovens.
“Evolving preferences are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.
The increased interest of low-carb regimens has increased sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.
As people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than premium.
The growth of high-quality pizzerias” over the last decade and a half, including popular brands, has “dramatically shifted the consumer view of what good pizza is,” notes the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk says: “People haven’t stopped liking pizza – they just want improved value.”
Dan says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.
From the perspective of an independent chain in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything new.
“There are now by-the-slice options, regional varieties, New Haven-style, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to explore.”
He says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or attachment to the company.
Gradually, Pizza Hut's customer base has been sliced up and spread to its fresher, faster competitors. To sustain its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are tightening.
The managing director of Pizza Hut's global operations said the rescue aimed “to protect our dining experience and protect jobs where possible”.
He said its first focus was to continue operating at the open outlets and takeaway hubs and to assist staff through the restructure.
However with so much money going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the market is “complex and using existing third-party platforms comes at a cost”, commentators say.
However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a smart move to adapt.