How the Public Turned Away from Its Taste for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for parents and children to indulge in its unlimited dining experience, endless salad selection, and ice cream with toppings.
Yet fewer customers are frequenting the restaurant these days, and it is shutting down 50% of its UK locations after being acquired following financial trouble for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she states “it's no longer popular.”
In the view of 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.
“How they do their buffet and their salad bar, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”
Since food prices have soared, Pizza Hut's unlimited dining format has become quite costly to run. Similarly, its outlets, which are being sliced from 132 to a smaller figure.
The chain, in common with competitors, has also experienced its costs increase. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer social security payments.
Two diners say they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.
Depending on your selection, Pizza Hut and Domino's prices are close, explains a culinary author.
While Pizza Hut has takeaway and deliveries through delivery platforms, it is falling behind to major competitors which focus exclusively to off-premise dining.
“The rival chain 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 original prices are quite high,” explains the expert.
But for the couple it is justified to get their special meal sent directly.
“We predominantly have meals at home now more than we eat out,” says the female customer, matching latest data that show a decrease in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a 6% drop in customers compared to the previous year.
Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.
An industry leader, senior partner at an advisory group, notes that not only have grocery stores been offering high-quality oven-ready pizzas for quite a while – some are even promoting countertop ovens.
“Evolving preferences are also having an impact in the success of casual eateries,” states Mr. Hawkley.
The growing trend of high protein diets has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he notes.
Because people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than premium.
The rise of artisanal pizza places” over the last several years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” explains the food expert.
“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who owns a pizza van based in a county in England explains: “It's not that stopped liking pizza – they just want better pizza for their money.”
The owner says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.
At an independent chain in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything new.
“There are now slice concepts, regional varieties, new haven, sourdough, wood-fired, deep-dish – it's a wonderful array for a pie fan to try.”
Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the company.
In recent years, Pizza Hut's market has been fragmented and allocated to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when household budgets are tightening.
The leadership of Pizza Hut's overseas branches said the acquisition aimed “to protect our customer service and retain staff where possible”.
He said its key goal was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.
But with large sums going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the market is “complicated and using existing third-party platforms comes at a cost”, experts say.
However, it's noted, reducing expenses by exiting competitive urban areas could be a good way to adjust.