Why the Country Lost Its Craving for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for families and friends to enjoy its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
Yet fewer patrons are visiting the brand nowadays, and it is reducing half of its British restaurants after being acquired following financial trouble for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's no longer popular.”
In the view of young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.
“How they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. The same goes for its locations, which are being reduced from 132 to just over 60.
The chain, in common with competitors, has also experienced its expenses increase. Earlier this year, employee wages increased due to rises in minimum wages and an higher rate of employer national insurance contributions.
Two diners say they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's rates are close, notes a food expert.
While Pizza Hut has pickup and delivery through external services, it is losing out to major competitors which specialize to this market.
“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and constantly running deals that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the expert.
Yet for these customers it is worth it to get their special meal brought to their home.
“We predominantly have meals at home now more than we eat out,” says one of the diners, echoing recent statistics that show a drop in people visiting casual and fast-food restaurants.
In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the year before.
There is also a further alternative to pizza from eateries: the frozen or fresh pizza.
A hospitality expert, global lead for leisure at a leading firm, points out that not only have supermarkets been offering good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.
“Shifts in habits are also having an impact in the popularity of fast-food chains,” says the analyst.
The increased interest of low-carb regimens has driven sales at chicken shops, while hitting sales of dough-based meals, he continues.
As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.
The growth of high-quality pizzerias” over the last decade and a half, including popular brands, has “completely altered 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. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates a pizza van based in Suffolk says: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”
He says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.
According to Pizzarova in Bristol, the proprietor says the sector is broadening but Pizza Hut has not provided anything fresh.
“You now have individual slices, regional varieties, New Haven-style, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pie fan to try.”
The owner says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.
Gradually, Pizza Hut's market has been sliced up and allocated to its more modern, agile alternatives. To maintain its costly operations, it would have to raise prices – which commentators say is difficult at a time when family finances are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and protect jobs where possible”.
It was explained its key goal was to maintain service at the surviving locations and delivery sites and to support colleagues through the transition.
Yet with so much money going into running its restaurants, it probably cannot to allocate significant resources in its takeaway operation because the industry is “complicated and working with existing delivery apps comes at a expense”, analysts say.
Still, experts suggest, reducing expenses by exiting competitive urban areas could be a effective strategy to adapt.