How the Nation Turned Away from Its Craving for the Pizza Hut Chain
Once, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, endless salad selection, and ice cream with toppings.
But fewer customers are frequenting the chain currently, and it is closing half of its British restaurants after being acquired following financial trouble for the second instance this calendar year.
It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she states “it's not a thing anymore.”
For a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.
“How they do their buffet and their salad bar, it feels like they are lowering standards and have reduced quality... They provide so much food and you're like ‘How?’”
Because grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. As have its locations, which are being sliced from over 130 to a smaller figure.
The company, in common with competitors, has also seen its operating costs rise. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an higher rate of employer social security payments.
Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.
According to your selection, Pizza Hut and Domino's rates are similar, notes a culinary author.
Even though Pizza Hut has off-premise options through delivery platforms, it is losing out to major competitors which focus exclusively to the delivery sector.
“Domino's has taken over the delivery market thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are on the higher side,” says the expert.
However for the couple it is worth it to get their date night brought to their home.
“We predominantly have meals at home now instead of we eat out,” says one of the diners, echoing latest data that show a decrease in people visiting quick-service eateries.
Over the summer, informal dining venues saw a 6% drop in customers compared to last summer.
There is also another rival to ordered-in pies: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at an advisory group, notes that not only have retailers been offering premium oven-ready pizzas for years – some are even selling pizza-making appliances.
“Evolving preferences are also contributing in the popularity of quick-service brands,” states the expert.
The growing trend of protein-rich eating plans has increased sales at poultry outlets, while reducing sales of dough-based meals, he continues.
Since people visit restaurants not as often, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more retro than luxurious.
The growth of premium pizza outlets” over the last decade and a half, for example popular brands, has “dramatically shifted the public's perception of what excellent pie is,” explains the food expert.
“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who runs a small business based in a county in England explains: “People haven’t stopped liking pizza – they just want improved value.”
The owner says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with changing preferences.
According to a small pizza brand in a UK location, the proprietor says the sector is expanding but Pizza Hut has neglected to introduce anything new.
“You now have slice concepts, artisanal styles, thin crust, sourdough, wood-fired, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble rivals. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is challenging at a time when family finances are decreasing.
The leadership of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and retain staff where possible”.
He said its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
But with so much money going into operating its locations, it probably cannot to spend heavily in its off-premise division because the sector is “complicated and working with existing external services comes at a cost”, analysts say.
But, he adds, lowering overhead by leaving oversaturated towns and city centres could be a effective strategy to adjust.