Why the Public Turned Away from Its Taste for Pizza Hut
At one time, Pizza Hut was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.
Yet fewer patrons are visiting the chain these days, and it is reducing half of its British outlets after being acquired following financial trouble for the second time this calendar year.
I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”
In the view of 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.
“The manner in which they do their buffet and their salad station, it feels like they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”
As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its outlets, which are being sliced from over 130 to 64.
The company, in common with competitors, has also faced its costs go up. Earlier this year, employee wages jumped due to rises in minimum wages and an rise in employer social security payments.
Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.
Depending on your order, Pizza Hut and Domino's costs are close, says a culinary author.
Although Pizza Hut does offer off-premise options through delivery platforms, it is missing out to major competitors which specialize to the delivery sector.
“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the expert.
However for Chris and Joanne it is justified to get their evening together brought to their home.
“We predominantly have meals at home now rather than we eat out,” says the female customer, echoing latest data that show a decrease in people frequenting casual and fast-food restaurants.
In the warmer season, quick-service eateries saw a 6% drop in diners compared to the year before.
Moreover, another rival to ordered-in pies: the frozen or fresh pizza.
An industry leader, global lead for leisure at a leading firm, points out that not only have supermarkets been providing high-quality prepared pies for quite a while – some are even offering home-pizza ovens.
“Lifestyle changes are also having an impact in the success of fast-food chains,” states the expert.
The growing trend of low-carb regimens has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.
As people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than premium.
The “explosion of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “fundamentally changed the general opinion of what good pizza is,” says the culinary analyst.
“A thin, flavorful, gentle crust with a select ingredients, 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 nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for under a tenner 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 a county in England says: “People haven’t fallen out of love with pizza – they just want improved value.”
Dan says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.
From the perspective of a small pizza brand in Bristol, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.
“There are now by-the-slice options, regional varieties, thin crust, artisan base, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to discover.”
Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the company.
Over time, Pizza Hut's customer base has been divided and spread to its trendier, more nimble alternatives. To maintain its costly operations, it would have to charge more – which experts say is difficult at a time when family finances are decreasing.
The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and retain staff where possible”.
It was explained its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
However with so much money going into maintaining its outlets, it likely can't afford to allocate significant resources in its takeaway operation because the market is “difficult and partnering with existing third-party platforms comes at a cost”, experts say.
Still, experts suggest, cutting its costs by leaving oversaturated towns and city centres could be a good way to adapt.