How the Country Lost Its Craving for the Pizza Hut Chain

In the past, the popular pizza chain was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

But not as many customers are visiting the brand nowadays, and it is reducing half of its British locations after being bought out of administration for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she comments “it's fallen out of favor.”

According to young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the seventies are now not-so-hot.

“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its outlets, which are being sliced from a large number to 64.

The company, like many others, has also seen its costs rise. In April this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer national insurance contributions.

Two diners say they would often visit at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's rates are comparable, says a food expert.

While Pizza Hut provides off-premise options through external services, it is missing out to larger chains which specialize to off-premise dining.

“Domino's has taken over the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” notes the specialist.

But for the couple it is justified to get their special meal sent directly.

“We absolutely dine at home now more than we eat out,” explains the female customer, echoing latest data that show a decrease in people visiting informal dining spots.

During the summer months, casual and fast-food restaurants saw a 6% drop in customers compared to the previous year.

There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at a leading firm, explains that not only have retailers been offering good-standard oven-ready pizzas for quite a while – some are even offering countertop ovens.

“Shifts in habits are also having an impact in the popularity of fast-food chains,” states the analyst.

The growing trend of high protein diets has increased sales at chicken shops, while hitting sales of dough-based meals, he adds.

As people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than upmarket.

The rise of artisanal pizza places” over the last decade and a half, for example new entrants, has “fundamentally changed the general opinion of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who runs Smokey Deez based in Suffolk says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

According to Pizzarova in Bristol, the founder says the pizza market is diversifying but Pizza Hut has failed to offer anything fresh.

“You now have slice concepts, regional varieties, new haven, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pie fan to try.”

The owner says Pizza Hut “should transform” as younger people don't have any emotional connection or attachment to the brand.

In recent years, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when personal spending are tightening.

The leadership of Pizza Hut's global operations said the buyout aimed “to ensure our customer service and save employment where possible”.

He said its key goal was to maintain service at the surviving locations and delivery sites and to support colleagues through the restructure.

However with significant funds going into maintaining its outlets, it may be unable to invest too much in its delivery service because the sector is “difficult and using existing delivery apps comes at a price”, analysts say.

However, it's noted, reducing expenses by leaving crowded locations could be a smart move to evolve.

Angela Carter
Angela Carter

A passionate interior designer and DIY enthusiast, sharing insights to help you create beautiful and functional homes.

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