Why the Public Lost Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But not as many patrons are choosing the brand nowadays, and it is reducing 50% of its British outlets after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she states “it's fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”

Because grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its locations, which are being sliced from 132 to a smaller figure.

The business, similar to other firms, has also faced its operating costs rise. This spring, staffing costs increased due to higher minimum pay and an increase in employer social security payments.

A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

Based on your choices, Pizza Hut and Domino's costs are close, notes an industry analyst.

Although Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to larger chains which solely cater to the delivery sector.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” explains the analyst.

But for these customers it is justified to get their date night brought to their home.

“We definitely eat at home now instead of we eat out,” says one of the diners, echoing current figures that show a decline in people visiting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in customers compared to last summer.

Moreover, one more competitor to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, points out that not only have supermarkets been selling high-quality prepared pies for years – some are even promoting pizza-making appliances.

“Shifts in habits are also contributing in the success of quick-service brands,” comments Mr. Hawkley.

The growing trend of low-carb regimens has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he adds.

Because people dine out less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more retro than luxurious.

The growth of artisanal pizza places” over the last decade and a half, for example boutique chains, has “dramatically shifted the consumer view of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates a pizza van based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At an independent chain in a UK location, owner Jack Lander says the sector is diversifying but Pizza Hut has failed to offer anything fresh.

“There are now slice concepts, London pizza, New Haven-style, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's market has been sliced up and allocated to its more modern, agile competitors. To keep up its high labor and location costs, it would have to raise prices – which experts say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and save employment where possible”.

It was explained its key goal was to maintain service at the open outlets and delivery sites and to help employees through the restructure.

However with large sums going into running its restaurants, it probably cannot to invest too much in its takeaway operation because the market is “complicated and partnering with existing external services comes at a cost”, experts say.

Still, experts suggest, reducing expenses by exiting competitive urban areas could be a good way to adjust.

Ryan Livingston
Ryan Livingston

Tech enthusiast and journalist with a passion for exploring emerging technologies and sharing practical advice for everyday users.

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