Why the Public Turned Away from Its Appetite for Pizza Hut
In the past, Pizza Hut was the favorite for groups and loved ones to enjoy its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.
Yet a declining number of patrons are frequenting the restaurant nowadays, and it is shutting down a significant portion of its British locations after being rescued from insolvency for the second occasion this year.
It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she says “it's no longer popular.”
In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now less appealing.
“How they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How?’”
As grocery costs have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. The same goes for its restaurants, which are being sliced from 132 to 64.
The company, like many others, has also faced its operating costs rise. This spring, labor expenses jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.
Two diners say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.
Based on your selection, Pizza Hut and Domino's rates are comparable, says an industry analyst.
Although Pizza Hut does offer takeaway and deliveries through external services, it is missing out to major competitors which specialize to off-premise dining.
“Another pizza company has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the analyst.
Yet for Chris and Joanne it is justified to get their special meal delivered to their door.
“We absolutely dine at home now more than we eat out,” says one of the diners, reflecting latest data that show a decrease in people visiting informal dining spots.
Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the year before.
Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.
Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have grocery stores been offering premium oven-ready pizzas for quite a while – some are even offering countertop ovens.
“Lifestyle changes are also playing a factor in the success of casual eateries,” states Mr. Hawkley.
The growing trend of high protein diets has driven sales at poultry outlets, while affecting sales of high-carbohydrate options, he continues.
Because people dine out less frequently, they may look for a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more dated than luxurious.
The rise of premium pizza outlets” over the last several years, such as new entrants, has “fundamentally changed the general opinion of what quality pizza is,” explains the culinary analyst.
“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she says.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in Suffolk comments: “People haven’t lost interest in pizza – they just want better pizza for their money.”
The owner says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.
From the perspective of an independent chain in a city in southwest England, the founder says the sector is expanding but Pizza Hut has failed to offer anything innovative.
“There are now by-the-slice options, London pizza, thin crust, fermented dough, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to explore.”
The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the company.
Over time, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble alternatives. To sustain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are tightening.
The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and retain staff where possible”.
The executive stated its first focus was to continue operating at the surviving locations and delivery sites and to support colleagues through the restructure.
However with large sums going into operating its locations, it probably cannot to allocate significant resources in its delivery service because the industry is “complex and partnering with existing delivery apps comes at a price”, experts say.
However, it's noted, lowering overhead by exiting oversaturated towns and city centres could be a smart move to evolve.