Why the Country Lost Its Taste for Pizza Hut
In the past, the popular pizza chain was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
But fewer patrons are choosing the restaurant nowadays, and it is reducing half of its UK locations after being rescued from insolvency for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she states “it's not a thing anymore.”
In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”
Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its outlets, which are being cut from over 130 to 64.
The chain, like many others, has also seen its costs rise. This spring, labor expenses increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
Based on your choices, Pizza Hut and Domino's costs are similar, notes a culinary author.
While Pizza Hut has pickup and delivery through third-party apps, it is falling behind to larger chains which solely cater to the delivery sector.
“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're finding a good deal, when in reality the base costs are on the higher side,” notes the analyst.
But for the couple it is worth it to get their evening together sent directly.
“We definitely eat at home now instead of we eat out,” comments the female customer, matching current figures that show a drop in people visiting quick-service eateries.
In the warmer season, informal dining venues saw a 6% drop in patrons compared to the previous year.
Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been offering high-quality oven-ready pizzas for a long time – some are even promoting pizza-making appliances.
“Evolving preferences are also playing a factor in the popularity of casual eateries,” states the analyst.
The increased interest of high protein diets has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.
As people visit restaurants more rarely, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.
The growth of high-quality pizzerias” over the last several years, for example new entrants, has “fundamentally changed the general opinion of what good pizza is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs Smokey Deez based in a regional area comments: “It's not that stopped liking pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
At a small pizza brand in a city in southwest England, the founder says the industry is expanding but Pizza Hut has failed to offer anything innovative.
“Currently available are slice concepts, regional varieties, New Haven-style, sourdough, wood-fired, rectangular – it's a delightful challenge for a pie fan to discover.”
He says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the chain.
In recent years, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to charge more – which industry analysts say is tough at a time when personal spending are shrinking.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to ensure our dining experience and retain staff where possible”.
He said its immediate priority was to continue operating at the surviving locations and delivery sites and to support colleagues through the transition.
However with so much money going into running its restaurants, it likely can't afford to spend heavily in its takeaway operation because the market is “complex and using existing third-party platforms comes at a price”, analysts say.
Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a smart move to adapt.