Why the Country Lost Interest in Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.
Yet a declining number of customers are visiting the chain currently, and it is shutting down half of its British outlets after being acquired following financial trouble for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she states “it's fallen out of favor.”
According to 23-year-old Martina, some of the very things Pizza Hut has been famous 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 bar, it feels like they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How can they?’”
Since grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to operate. The same goes for its restaurants, which are being reduced from over 130 to 64.
The company, like many others, has also faced its costs rise. In April this year, employee wages increased due to higher minimum pay and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.
Based on your choices, Pizza Hut and Domino's costs are close, explains an industry analyst.
Although Pizza Hut has off-premise options through external services, it is falling behind to major competitors which solely cater to the delivery sector.
“Another pizza company has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make customers feel like they're finding a good deal, when in reality the base costs are on the higher side,” explains the specialist.
However for Chris and Joanne it is acceptable to get their special meal brought to their home.
“We absolutely dine at home now instead of we eat out,” comments one of the diners, reflecting recent statistics that show a decline in people frequenting quick-service eateries.
In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to the year before.
Additionally, a further alternative to pizza from eateries: the supermarket pizza.
A hospitality expert, global lead for leisure at an advisory group, explains that not only have retailers been offering high-quality ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also playing a factor in the popularity of quick-service brands,” comments the expert.
The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.
Since people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more retro than luxurious.
The growth of artisanal pizza places” over the last several years, such as new entrants, has “fundamentally changed the general opinion of what excellent pie is,” says the culinary analyst.
“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a pizza van based in Suffolk comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
According to an independent chain in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything fresh.
“There are now by-the-slice options, artisanal styles, new haven, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”
The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the company.
In recent years, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster competitors. To sustain its costly operations, it would have to raise prices – which commentators say is challenging at a time when family finances are decreasing.
The managing director of Pizza Hut's global operations said the rescue aimed “to ensure our customer service and retain staff where possible”.
He said its key goal was to continue operating at the surviving locations and delivery sites and to help employees through the restructure.
However with so much money going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the market is “complicated and partnering with existing delivery apps comes at a price”, analysts say.
But, he adds, lowering overhead by exiting competitive urban areas could be a effective strategy to evolve.