Why the Public Turned Away from Its Craving for Pizza Hut

At one time, Pizza Hut was the go-to for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

Yet not as many patrons are frequenting the brand nowadays, and it is closing half of its British outlets after being acquired following financial trouble for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's not a thing anymore.”

According to a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

“The way 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 offer so much food and you're like ‘How?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its restaurants, which are being sliced from 132 to just over 60.

The chain, like many others, has also seen its operating costs rise. In April this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's rates are close, says an industry analyst.

Even though Pizza Hut has takeaway and deliveries through external services, it is losing out to big rivals which specialize to the delivery sector.

“The rival chain has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are relatively expensive,” notes the specialist.

But 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 Joanne, matching latest data that show a decrease in people frequenting informal dining spots.

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

Additionally, another rival to ordered-in pies: the supermarket pizza.

Will Hawkley, global lead for leisure at an advisory group, explains that not only have retailers been offering high-quality prepared pies for a long time – some are even offering home-pizza ovens.

“Shifts in habits are also having an impact in the popularity of quick-service brands,” comments Mr. Hawkley.

The growing trend of low-carb regimens has boosted sales at chicken shops, while hitting sales of carb-heavy pizza, he notes.

As people dine out not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more old-fashioned than premium.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “completely altered the public's perception of what quality pizza is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a county in England says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of an independent chain in Bristol, the founder says the pizza market is expanding but Pizza Hut has not provided anything new.

“You now have individual slices, artisanal styles, new haven, artisan base, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or allegiance to the company.

Gradually, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble competitors. To keep up its costly operations, it would have to charge more – which industry analysts say is difficult at a time when personal spending are decreasing.

The leadership of Pizza Hut's global operations said the rescue aimed “to protect our dining experience and retain staff where possible”.

He said its immediate priority was to maintain service at the surviving locations and delivery sites and to help employees through the change.

Yet with so much money going into running its restaurants, it may be unable to allocate significant resources in its delivery service because the sector is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a effective strategy to adjust.

Amy Campbell
Amy Campbell

A passionate writer and digital enthusiast, Evelyn explores emerging trends and shares engaging content with a global audience.

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