Why the Public Turned Away from Its Craving for Pizza Hut
Once, Pizza Hut was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
Yet not as many customers are visiting the chain currently, and it is reducing half of its British outlets after being acquired following financial trouble for the second time this year.
It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's fallen out of favor.”
In the view of young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.
“The way they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How?’”
As grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its restaurants, which are being sliced from 132 to a smaller figure.
The business, in common with competitors, has also seen its expenses rise. This spring, labor expenses jumped due to rises in minimum wages and an increase in employer national insurance contributions.
Two diners say they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.
According to your choices, Pizza Hut and Domino's rates are similar, notes a culinary author.
Even though Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to big rivals which solely cater to the delivery sector.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are on the higher side,” explains the specialist.
Yet for Chris and Joanne it is justified to get their evening together brought to their home.
“We predominantly have meals at home now instead of we eat out,” explains the female customer, matching current figures that show a drop in people visiting informal dining spots.
During the summer months, informal dining venues saw a notable decrease in customers compared to last summer.
Additionally, one more competitor to pizza from eateries: the frozen or fresh pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been selling good-standard ready-to-bake pizzas for quite a while – some are even selling countertop ovens.
“Shifts in habits are also having an impact in the popularity of quick-service brands,” comments Mr. Hawkley.
The growing trend of low-carb regimens has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.
Since people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's retro theme with booth seating and traditional décor can feel more old-fashioned than premium.
The growth of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “fundamentally changed the public's perception of what excellent pie is,” says the culinary analyst.
“A crisp, airy, digestible pizza 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 comments.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise 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?
“The decision is simple.”
An independent operator, who owns Smokey Deez based in a county in England says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
At Pizzarova in Bristol, the founder says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.
“You now have by-the-slice options, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to try.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the brand.
Gradually, Pizza Hut's share has been sliced up and spread to its more modern, agile alternatives. To keep up its costly operations, it would have to increase costs – which commentators say is challenging at a time when personal spending are decreasing.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to ensure our dining experience and retain staff where possible”.
It was explained its immediate priority was to maintain service at the open outlets and takeaway hubs and to support colleagues through the transition.
But with large sums going into operating its locations, it may be unable to invest too much in its off-premise division because the market is “difficult and using existing external services comes at a cost”, analysts say.
However, it's noted, lowering overhead by leaving oversaturated towns and city centres could be a good way to evolve.
