How the Public Lost Interest in Its Craving for Pizza Hut

Once, the popular pizza chain was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

However fewer customers are frequenting the brand nowadays, and it is closing 50% of its UK outlets after being bought out of administration for the second instance this year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she says “it's not a thing anymore.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now less appealing.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”

As food prices have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its outlets, which are being reduced from a large number to a smaller figure.

The chain, in common with competitors, has also faced its costs rise. In April this year, labor expenses jumped due to rises in minimum wages and an increase in employer national insurance contributions.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's rates are comparable, explains a food expert.

While Pizza Hut has off-premise options through third-party apps, it is losing out to larger chains which solely cater to the delivery sector.

“Domino's has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the analyst.

Yet for these customers it is acceptable to get their date night sent directly.

“We definitely eat at home now rather than we eat out,” explains the female customer, echoing current figures that show a decrease in people going to informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in patrons compared to last summer.

Additionally, a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, points out that not only have retailers been selling high-quality oven-ready pizzas for a long time – some are even offering pizza-making appliances.

“Shifts in habits are also having an impact in the success of casual eateries,” comments the analyst.

The increased interest of high protein diets has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

Since people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.

The “explosion of artisanal pizza places” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a county in England explains: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

According to an independent chain in a UK location, owner Jack Lander says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“You now have by-the-slice options, London pizza, New Haven-style, fermented dough, wood-fired, Detroit – it's a delightful challenge for a pie fan to try.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or attachment to the chain.

Over time, Pizza Hut's share has been divided and distributed to its trendier, more nimble rivals. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when personal spending are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and retain staff where possible”.

It was explained its key goal was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

However with significant funds going into maintaining its outlets, it likely can't afford to spend heavily in its delivery service because the sector is “difficult and partnering with existing external services comes at a price”, experts say.

But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a smart move to adjust.

Sheila Collins
Sheila Collins

A passionate life coach and writer dedicated to helping others overcome obstacles and thrive in their personal and professional lives.

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