Why the Public Turned Away from Its Taste for Pizza Hut
At one time, the popular pizza chain was the favorite for parents and children to enjoy its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.
But not as many customers are choosing the chain these days, and it is shutting down a significant portion of its British outlets after being bought out of administration for the second occasion this year.
It was common to visit 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.” However, at present, as a young adult, she comments “it's no longer popular.”
According to young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.
“The way they do their buffet and their salad bar, it feels like they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”
Since food prices have soared, Pizza Hut's buffet-style service has become very expensive to operate. As have its outlets, which are being reduced from a large number to just over 60.
The business, like many others, has also seen its operating costs go up. In April this year, labor expenses rose due to higher minimum pay and an rise in employer national insurance contributions.
Chris, 36, and Joanne, 29 mention 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 “not good value”.
According to your order, Pizza Hut and Domino's costs are close, explains a food expert.
Although Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to larger chains which focus exclusively to this market.
“Another pizza company has succeeded in leading the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are quite high,” says the expert.
But for these customers it is acceptable to get their date night delivered to their door.
“We predominantly have meals at home now rather than we eat out,” says Joanne, matching latest data that show a decline in people visiting informal dining spots.
In the warmer season, quick-service eateries saw a six percent decline in diners compared to the previous year.
There is also a further alternative to ordered-in pies: the supermarket pizza.
An industry leader, senior partner at an advisory group, points out that not only have grocery stores been providing good-standard prepared pies for quite a while – some are even promoting home-pizza ovens.
“Evolving preferences are also having an impact in the performance of casual eateries,” comments the analyst.
The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while affecting sales of high-carbohydrate options, he notes.
Because people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than luxurious.
The growth of premium pizza outlets” over the last several years, including new entrants, has “completely altered the public's perception of what quality pizza 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 says.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in Suffolk says: “It's not that stopped liking 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 faced challenges because it failed to adapt with changing preferences.
At a small pizza brand in a city in southwest England, the founder says the pizza market is expanding but Pizza Hut has failed to offer anything new.
“You now have by-the-slice options, London pizza, thin crust, sourdough, traditional Italian, deep-dish – 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 loyalty to the chain.
Gradually, Pizza Hut's share has been divided and spread to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to charge more – which industry analysts say is difficult at a time when personal spending are tightening.
A senior executive of Pizza Hut's international markets said the acquisition aimed “to protect our customer service and save employment where possible”.
The executive stated its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.
However with so much money going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the market is “complicated and partnering with existing external services comes at a expense”, commentators say.
However, it's noted, lowering overhead by leaving oversaturated towns and city centres could be a smart move to adapt.