Why the Public Lost Interest in Its Taste for Pizza Hut
In the past, the popular pizza chain was the go-to for parents and children to feast on its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.
But fewer diners are choosing the brand currently, and it is reducing half of its British locations after being bought out of administration for the second occasion this year.
I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's fallen out of favor.”
For a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now less appealing.
“How they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How?’”
Since food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. The same goes for its locations, which are being reduced from 132 to 64.
The chain, like many others, has also seen its expenses rise. Earlier this year, employee wages jumped due to rises in minimum wages and an rise in employer taxes.
A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's prices are similar, explains a culinary author.
Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to big rivals which focus exclusively to this market.
“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the original prices are on the higher side,” notes the analyst.
However for Chris and Joanne it is acceptable to get their special meal delivered to their door.
“We predominantly have meals at home now rather than we eat out,” says the female customer, echoing latest data that show a drop in people visiting casual and fast-food restaurants.
During the summer months, quick-service eateries saw a notable decrease in diners compared to the previous year.
Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.
Will Hawkley, senior partner at an advisory group, explains that not only have retailers been offering high-quality prepared pies for a long time – some are even offering countertop ovens.
“Shifts in habits are also having an impact in the success of fast-food chains,” states the expert.
The increased interest of high protein diets has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.
Since people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than upmarket.
The “explosion of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the general opinion of what good pizza is,” says the culinary analyst.
“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a pizza van based in a county in England explains: “The issue isn’t that stopped liking pizza – they just want improved value.”
Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
At a small pizza brand in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything new.
“You now have slice concepts, regional varieties, new haven, fermented dough, traditional Italian, Detroit – it's a delightful challenge for a pie fan to try.”
He says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or attachment to the brand.
In recent years, Pizza Hut's market has been divided and spread to its trendier, more nimble competitors. To sustain its high labor and location costs, it would have to increase costs – which industry analysts say is challenging at a time when personal spending are decreasing.
The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and save employment where possible”.
It was explained its key goal was to maintain service at the surviving locations and off-premise points and to assist staff through the restructure.
However with so much money going into maintaining its outlets, it probably cannot to invest too much in its off-premise division because the market is “complicated and using existing external services comes at a price”, commentators say.
However, it's noted, reducing expenses by leaving crowded locations could be a good way to adjust.