Why the Country Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for parents and children to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

However fewer diners are visiting the chain these days, and it is shutting down 50% of its British restaurants after being bought out of administration for the second occasion this year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she says “it's fallen out of favor.”

According to young customer Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.

“How they do their buffet and their salad station, it feels like they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its restaurants, which are being reduced from a large number to a smaller figure.

The business, similar to other firms, has also experienced its operating costs go up. Earlier this year, staffing costs increased due to rises in minimum wages and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they used to go 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 similar, explains a culinary author.

Even though Pizza Hut provides pickup and delivery through third-party apps, it is missing out to major competitors which specialize to the delivery sector.

“Domino's has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” notes the analyst.

However for Chris and Joanne it is acceptable to get their date night sent directly.

“We predominantly have meals at home now more than we eat out,” says Joanne, reflecting recent statistics that show a decrease in people frequenting informal dining spots.

During the summer months, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.

Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

A hospitality expert, senior partner at a major consultancy, points out that not only have retailers been selling premium oven-ready pizzas for a long time – some are even selling countertop ovens.

“Evolving preferences are also contributing in the popularity of fast-food chains,” comments Mr. Hawkley.

The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.

As people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “fundamentally changed the consumer view of what good pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she comments.

“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

A mobile pizza vendor, who owns Smokey Deez based in a county in England comments: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are individual slices, London pizza, thin crust, artisan base, Neapolitan, deep-dish – it's a delightful challenge for a pie fan to discover.”

Jack says Pizza Hut “should transform” as newer generations don't have any emotional connection or allegiance to the brand.

Over time, Pizza Hut's share has been fragmented and spread to its fresher, faster alternatives. To maintain its expensive staffing and restaurants, it would have to increase costs – which experts say is challenging at a time when household budgets are shrinking.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to safeguard our customer service and save employment where possible”.

The executive stated its first focus was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the restructure.

Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the sector is “complex and partnering with existing delivery apps comes at a cost”, analysts say.

However, it's noted, lowering overhead by exiting competitive urban areas could be a effective strategy to adapt.