Why the Country Lost Interest in Its Taste for Pizza Hut
At one time, the popular pizza chain was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
But not as many diners are choosing the brand these days, and it is shutting down a significant portion of its British restaurants after being rescued from insolvency for the second instance this year.
“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she says “it's no longer popular.”
According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.
“The way they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”
Because ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. The same goes for its restaurants, which are being sliced from a large number to a smaller figure.
The company, in common with competitors, has also faced its expenses increase. This spring, labor expenses increased due to increases in the legal wage floor and an increase in employer national insurance contributions.
A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “not good value”.
Based on your choices, Pizza Hut and Domino's costs are close, notes a food expert.
Even though Pizza Hut does offer off-premise options through third-party apps, it is missing out to big rivals which specialize to off-premise dining.
“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the analyst.
However for the couple it is justified to get their evening together brought to their home.
“We definitely eat at home now rather than we eat out,” says one of the diners, echoing recent statistics that show a decrease in people going to quick-service eateries.
Over the summer, informal dining venues saw a six percent decline in patrons compared to last summer.
Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at a leading firm, explains that not only have retailers been selling good-standard prepared pies for a long time – some are even selling pizza-making appliances.
“Evolving preferences are also playing a factor in the success of casual eateries,” states Mr. Hawkley.
The rising popularity of low-carb regimens has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.
Since people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than premium.
The rise of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “completely altered the general opinion of what good pizza is,” says the food expert.
“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 led to Pizza Hut's struggles,” she comments.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who operates a pizza van based in Suffolk explains: “It's not that lost interest in pizza – they just want improved value.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.
At Pizzarova in Bristol, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything new.
“You now have slice concepts, London pizza, new haven, artisan base, Neapolitan, deep-dish – it's a delightful challenge for a pie fan to try.”
Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the brand.
Over time, Pizza Hut's customer base has been fragmented and distributed to its more modern, agile rivals. To keep up its costly operations, it would have to increase costs – which experts say is tough at a time when household budgets are shrinking.
The leadership of Pizza Hut's global operations said the buyout aimed “to ensure our guest experience and save employment where possible”.
The executive stated its immediate priority was to keep running at the open outlets and delivery sites and to assist staff through the change.
Yet with significant funds going into operating its locations, it probably cannot to spend heavily in its off-premise division because the market is “complicated and using existing third-party platforms comes at a cost”, commentators say.
Still, experts suggest, cutting its costs by leaving crowded locations could be a effective strategy to adjust.