How the Public Turned Away from Its Appetite for Pizza Hut
Once, the popular pizza chain was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But a declining number of diners are visiting the restaurant currently, and it is reducing half of its British locations after being rescued from insolvency for the second occasion this calendar year.
“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”
According to 23-year-old Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now outdated.
“The manner in which they do their buffet and their salad bar, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”
Since ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to maintain. Similarly, its locations, which are being cut from a large number to 64.
The business, like many others, has also faced its operating costs go up. This spring, staffing costs jumped due to higher minimum pay and an higher rate of employer taxes.
Two diners mention they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's costs are comparable, notes a culinary author.
While Pizza Hut has takeaway and deliveries through external services, it is falling behind to major competitors which solely cater to the delivery sector.
“Domino's has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the expert.
Yet for the couple it is justified to get their date night sent directly.
“We definitely eat at home now more than we eat out,” comments the female customer, matching recent statistics that show a drop in people going to quick-service eateries.
Over the summer, casual and fast-food restaurants saw a six percent decline in customers compared to last summer.
There is also another rival to restaurant and takeaway pizzas: the supermarket pizza.
An industry leader, global lead for leisure at a leading firm, points out that not only have grocery stores been offering high-quality prepared pies for a long time – some are even promoting countertop ovens.
“Shifts in habits are also playing a factor in the success of casual eateries,” states Mr. Hawkley.
The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while reducing sales of dough-based meals, he notes.
Since people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.
The “explosion of high-quality pizzerias” over the last decade and a half, including new entrants, has “fundamentally changed the public's perception of what excellent pie is,” says the food expert.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with evolving tastes.
At Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.
“There are now slice concepts, regional varieties, new haven, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”
The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or attachment to the brand.
Gradually, Pizza Hut's customer base has been divided and distributed to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to increase costs – which experts say is difficult at a time when family finances are shrinking.
A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and protect jobs where possible”.
It was explained its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to assist staff through the transition.
Yet with significant funds going into operating its locations, it likely can't afford to spend heavily in its off-premise division because the sector is “complicated and working with existing delivery apps comes at a price”, commentators say.
However, it's noted, cutting its costs by exiting oversaturated towns and city centres could be a good way to adapt.