How the Nation Lost Interest in Its Appetite for Pizza Hut
At one time, the popular pizza chain was the favorite for parents and children to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.
However not as many patrons are visiting the chain these days, and it is closing half of its UK restaurants after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,â notes one London shopper. âIt was a tradition, you'd go on a Sunday â spend the whole day there.â However, at present, aged 24, she comments âit's no longer popular.â
According to 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of the very things Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now outdated.
âHow they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have inferior offerings... They provide so much food and you're like âHow can they?ââ
Because food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its locations, which are being sliced from a large number to a smaller figure.
The chain, similar to other firms, has also experienced its expenses increase. This spring, employee wages jumped due to increases in the legal wage floor and an higher rate of employer national insurance contributions.
Two diners mention they frequently dined at Pizza Hut for a date âfrom time to timeâ, but now they choose another pizza brand and think Pizza Hut is âvery overpricedâ.
According to your choices, Pizza Hut and Domino's prices are comparable, explains an industry analyst.
While Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to larger chains which focus exclusively to the delivery sector.
âAnother pizza company has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,â says the analyst.
However for the couple it is worth it to get their date night sent directly.
âWe definitely eat at home now more than we eat out,â comments Joanne, reflecting recent statistics that show a decline in people visiting informal dining spots.
During the summer months, informal dining venues saw a 6% drop in customers compared to the year before.
Moreover, another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have retailers been providing good-standard oven-ready pizzas for years â some are even selling home-pizza ovens.
âEvolving preferences are also having an impact in the success of quick-service brands,â comments Mr. Hawkley.
The rising popularity of high protein diets has increased sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.
Since people visit restaurants not as often, they may prefer a more high-quality meal, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more dated than luxurious.
The growth of premium pizza outletsâ over the last several years, such as popular brands, has âcompletely altered the public's perception of what quality pizza is,â notes the industry commentator.
âA crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,â she comments.
âWhy would anyone spend ÂŁ17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
âIt's a no-brainer.â
An independent operator, who operates a small business based in a county in England explains: âPeople havenât stopped liking pizza â they just want higher quality at a fair price.â
The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.
From the perspective of an independent chain in a city in southwest England, the founder says the industry is diversifying but Pizza Hut has failed to offer anything innovative.
âThere are now individual slices, London pizza, thin crust, sourdough, traditional Italian, deep-dish â it's a heavenly minefield for a pizza enthusiast to discover.â
The owner says Pizza Hut âmust rebrandâ as newer generations don't have any sense of nostalgia or loyalty to the company.
In recent years, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To sustain its costly operations, it would have to raise prices â which commentators say is challenging at a time when household budgets are tightening.
The leadership of Pizza Hut's global operations said the rescue aimed âto safeguard our dining experience and save employment where possibleâ.
It was explained its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the change.
However with large sums going into operating its locations, it likely can't afford to invest too much in its off-premise division because the industry is âcomplex and partnering with existing third-party platforms comes at a expenseâ, analysts say.
However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to adapt.