Why the Public Turned Away from Its Craving for the Pizza Hut Chain
At one time, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.
But a declining number of patrons are choosing the restaurant nowadays, and it is shutting down half of its British restaurants after being acquired following financial trouble for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's no longer popular.”
In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.
“How they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”
Since food prices have soared, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its restaurants, which are being cut from over 130 to just over 60.
The company, similar to other firms, has also seen its operating costs increase. In April this year, labor expenses rose due to rises in minimum wages and an higher rate of employer social security payments.
A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's prices are comparable, notes a culinary author.
While Pizza Hut has pickup and delivery through external services, it is losing out to big rivals which specialize to this market.
“Another pizza company has taken over the delivery market thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the expert.
But for the couple it is acceptable to get their evening together sent directly.
“We absolutely dine at home now rather than we eat out,” explains one of the diners, reflecting latest data that show a drop in people visiting informal dining spots.
In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.
There is also a further alternative to pizza from eateries: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have grocery stores been offering premium prepared pies for years – some are even promoting countertop ovens.
“Shifts in habits are also playing a factor in the success of casual eateries,” comments Mr. Hawkley.
The growing trend of high protein diets has boosted sales at poultry outlets, while affecting sales of high-carbohydrate options, he notes.
Because people go out to eat not as often, 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 retro than upmarket.
The growth of high-quality pizzerias” over the last 10 to 15 years, such as boutique chains, has “dramatically shifted the consumer view of what good pizza is,” explains the food expert.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who operates Smokey Deez based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want improved value.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.
At Pizzarova in a UK location, owner Jack Lander says the industry is broadening but Pizza Hut has not provided anything fresh.
“Currently available are by-the-slice options, London pizza, new haven, artisan base, Neapolitan, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”
Jack says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.
Gradually, Pizza Hut's share has been divided and allocated to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when personal spending are decreasing.
A senior executive of Pizza Hut's international markets said the buyout aimed “to protect our dining experience and protect jobs where possible”.
It was explained its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to assist staff through the transition.
Yet with so much money going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the market is “complex and working with existing third-party platforms comes at a expense”, experts say.
Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a smart move to adapt.