Why the Public Lost Interest in Its Craving for Pizza Hut
At one time, the popular pizza chain was the top choice for families and friends to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
Yet a declining number of patrons are visiting the restaurant these days, and it is shutting down half of its UK restaurants after being acquired following financial trouble for the second instance this year.
âWe used to go Pizza Hut when I was a child,â says Prudence. âIt was a tradition, you'd go on a Sunday â spend the whole day there.â However, at present, aged 24, she states âit's no longer popular.â
According to young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.
âHow they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have inferior offerings... They provide so much food and you're like âHow is that possible?ââ
Because ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its restaurants, which are being sliced from 132 to just over 60.
The business, similar to other firms, has also seen its costs go up. Earlier this year, staffing costs jumped due to higher minimum pay and an increase in employer national insurance contributions.
Two diners say they used to go at Pizza Hut for a date âevery now and thenâ, but now they order in another pizza brand and think Pizza Hut is âtoo expensiveâ.
Based on your selection, Pizza Hut and Domino's rates are similar, explains a culinary author.
Although Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to big rivals which focus exclusively to this market.
âThe rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the base costs are on the higher side,â says the specialist.
However for these customers it is worth it to get their date night delivered to their door.
âWe absolutely dine at home now instead of we eat out,â explains Joanne, echoing current figures that show a decrease in people visiting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.
There is also a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have retailers been selling premium ready-to-bake pizzas for a long time â some are even promoting countertop ovens.
âLifestyle changes are also having an impact in the performance of quick-service brands,â comments the expert.
The growing trend of low-carb regimens has increased sales at poultry outlets, while affecting sales of high-carbohydrate options, he notes.
As people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than luxurious.
The âexplosion of premium pizza outletsâ over the last several years, for example boutique chains, has âdramatically shifted the public's perception of what good pizza is,â says the culinary analyst.
âA thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,â she states.
âWho would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many real Italian restaurants around the country?
âIt's an easy choice.â
Dan Puddle, who owns Smokey Deez based in Suffolk comments: âPeople havenât fallen out of love with pizza â they just want better pizza for their money.â
Dan says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.
According to an independent chain in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything fresh.
âYou now have individual slices, London pizza, thin crust, artisan base, Neapolitan, rectangular â it's a delightful challenge for a pizza-loving consumer to discover.â
Jack says Pizza Hut âmust rebrandâ as younger people don't have any emotional connection or allegiance to the chain.
Over time, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to increase costs â which industry analysts say is tough at a time when household budgets are tightening.
The managing director of Pizza Hut's global operations said the rescue aimed âto ensure our dining experience and retain staff where possibleâ.
He said its key goal was to continue operating at the open outlets and delivery sites and to support colleagues through the transition.
Yet with so much money going into operating its locations, it may be unable to spend heavily in its takeaway operation because the industry is âcomplicated and partnering with existing external services comes at a expenseâ, experts say.
But, he adds, reducing expenses by exiting competitive urban areas could be a smart move to adapt.