How the Nation Turned Away from Its Craving for Pizza Hut

At one time, the popular pizza chain was the top choice for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

Yet a declining number of customers are choosing the restaurant these days, and it is closing half of its British outlets after being bought out of administration for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she says “it's no longer popular.”

In the view of young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.

“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”

Because food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to run. Similarly, its outlets, which are being reduced from over 130 to a smaller figure.

The chain, similar to other firms, has also seen its expenses rise. Earlier this year, staffing costs rose due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

Depending on your order, Pizza Hut and Domino's costs are close, explains a food expert.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to larger chains which solely cater to off-premise dining.

“Domino's has managed to dominate the takeaway pizza sector thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the specialist.

But for Chris and Joanne it is justified to get their date night delivered to their door.

“We definitely eat at home now more than we eat out,” says the female customer, echoing latest data that show a decline in people frequenting informal dining spots.

In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the year before.

Moreover, one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have retailers been selling premium prepared pies for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the popularity of quick-service brands,” says the analyst.

The rising popularity of high protein diets has boosted sales at poultry outlets, while affecting sales of dough-based meals, he adds.

Since people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The “explosion of artisanal pizza places” over the last decade and a half, including new entrants, has “completely altered the general opinion of what excellent pie is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates a small business based in Suffolk explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of Pizzarova in a UK location, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“Currently available are individual slices, artisanal styles, new haven, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to explore.”

He says Pizza Hut “must rebrand” as the youth don't have any fond memories or loyalty to the company.

Over time, Pizza Hut's customer base has been fragmented and spread to its trendier, more nimble competitors. To sustain its costly operations, it would have to charge more – which commentators say is difficult at a time when household budgets are decreasing.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to protect our dining experience and protect jobs where possible”.

The executive stated its first focus was to keep running at the surviving locations and delivery sites and to support colleagues through the transition.

But with large sums going into maintaining its outlets, it probably cannot to invest too much in its off-premise division because the market is “difficult and working with existing delivery apps comes at a expense”, commentators say.

However, it's noted, reducing expenses by leaving crowded locations could be a effective strategy to adapt.

Jason Sherman
Jason Sherman

A seasoned network engineer with over a decade of experience in IT infrastructure and cybersecurity.

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