How the Public Turned Away from Its Appetite for the Pizza Hut Chain
At one time, the popular pizza chain was the top choice for families and friends to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
But fewer diners are visiting the chain these days, and it is closing 50% of its UK restaurants after being rescued from insolvency for the second time this calendar year.
I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she comments “it's fallen out of favor.”
In the view of young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”
Because food prices have increased significantly, Pizza Hut's unlimited dining format has become very expensive to operate. As have its outlets, which are being reduced from over 130 to just over 60.
The business, similar to other firms, has also seen its expenses rise. In April this year, employee wages increased due to rises in minimum wages and an rise in employer national insurance contributions.
Two diners explain 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 similar, notes a food expert.
While Pizza Hut provides off-premise options through external services, it is falling behind to big rivals which solely cater to this market.
“Domino's has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make customers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” says the specialist.
But for the couple it is acceptable to get their special meal brought to their home.
“We definitely eat at home now instead of we eat out,” explains Joanne, reflecting recent statistics that show a decline in people going to informal dining spots.
During the summer months, informal dining venues saw a 6% drop in diners compared to the previous year.
There is also another rival to pizza from eateries: the frozen or fresh pizza.
An industry leader, head of leisure and hospitality at an advisory group, points out that not only have retailers been providing premium prepared pies for quite a while – some are even selling countertop ovens.
“Shifts in habits are also contributing in the success of casual eateries,” states the analyst.
The growing trend of low-carb regimens has driven sales at poultry outlets, while reducing sales of high-carbohydrate options, he adds.
As people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.
The growth of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the general opinion of what excellent pie is,” says the food expert.
“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns Smokey Deez based in Suffolk comments: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”
Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
According to an independent chain in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has not provided anything fresh.
“You now have slice concepts, regional varieties, New Haven-style, fermented dough, Neapolitan, rectangular – it's a wonderful array for a pizza-loving consumer to discover.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the company.
Gradually, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which experts say is tough at a time when household budgets are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and save employment where possible”.
It was explained its first focus was to keep running at the surviving locations and takeaway hubs and to assist staff through the transition.
Yet with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its delivery service because the industry is “complicated and working with existing third-party platforms comes at a price”, experts say.
Still, experts suggest, reducing expenses by withdrawing from crowded locations could be a good way to adjust.