Why the Nation Turned Away from Its Taste for the Pizza Hut Chain
At one time, Pizza Hut was the favorite for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
However a declining number of diners are frequenting the restaurant currently, and it is reducing half of its UK outlets after being acquired following financial trouble for the second occasion this year.
I remember going Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's no longer popular.”
In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.
“How they do their buffet and their salad bar, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How is that possible?’”
As food prices have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its outlets, which are being reduced from 132 to a smaller figure.
The business, similar to other firms, has also experienced its operating costs rise. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.
Two diners say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.
According to your selection, Pizza Hut and Domino's prices are close, says a food expert.
Although Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to major competitors which solely cater to this market.
“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the analyst.
However for Chris and Joanne it is worth it to get their evening together brought to their home.
“We predominantly have meals at home now rather than we eat out,” says Joanne, echoing current figures that show a decline in people frequenting informal dining spots.
During the summer months, quick-service eateries saw a notable decrease in diners compared to last summer.
There is also one more competitor to ordered-in pies: the frozen or fresh pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.
“Evolving preferences are also having an impact in the success of fast-food chains,” states the expert.
The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while affecting sales of carb-heavy pizza, he continues.
Since people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than upmarket.
The rise of premium pizza outlets” over the last decade and a half, such as new entrants, has “fundamentally changed the consumer view of what good pizza is,” explains the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, 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 modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”
He says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.
At an independent chain in a UK location, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything new.
“There are now by-the-slice options, artisanal styles, new haven, sourdough, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”
Jack says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or loyalty to the chain.
Gradually, Pizza Hut's share has been fragmented and spread to its more modern, agile competitors. To sustain its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when personal spending are tightening.
A senior executive of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and protect jobs where possible”.
The executive stated its first focus was to maintain service at the surviving locations and off-premise points and to assist staff through the restructure.
Yet with significant funds going into maintaining its outlets, it likely can't afford to invest too much in its takeaway operation because the sector is “difficult and partnering with existing third-party platforms comes at a price”, experts say.
But, he adds, lowering overhead by exiting competitive urban areas could be a good way to adjust.