How the Nation Lost Interest in Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the go-to for families and friends to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.

However fewer diners are frequenting the brand nowadays, and it is reducing 50% of its UK restaurants after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it opened 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 cutting corners and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its locations, which are being sliced from 132 to just over 60.

The chain, in common with competitors, has also seen its operating costs increase. This spring, labor expenses jumped due to rises in minimum wages and an higher rate of employer taxes.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's prices are close, notes a culinary author.

Even though Pizza Hut has off-premise options through external services, it is losing out to big rivals which specialize to this market.

“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are relatively expensive,” explains the specialist.

However for these customers it is worth it to get their date night sent directly.

“We definitely eat at home now more than we eat out,” says one of the diners, reflecting recent statistics that show a decline in people visiting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to the year before.

There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have grocery stores been offering premium oven-ready pizzas for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” says the analyst.

The increased interest of low-carb regimens has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

As people visit restaurants not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than luxurious.

The rise of premium pizza outlets” over the last several years, such as popular brands, has “dramatically shifted the general opinion of what excellent pie is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in a county in England says: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

At Pizzarova in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything new.

“There are now by-the-slice options, artisanal styles, thin crust, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to discover.”

He says Pizza Hut “should transform” as younger people don't have any emotional connection or attachment to the company.

In recent years, Pizza Hut's customer base has been sliced up and allocated to its more modern, agile alternatives. To keep up its costly operations, it would have to raise prices – which commentators say is tough at a time when personal spending are shrinking.

The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and retain staff where possible”.

The executive stated its first focus was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.

However with significant funds going into maintaining its outlets, it likely can't afford to invest too much in its off-premise division because the industry is “complicated and partnering with existing external services comes at a cost”, analysts say.

Still, experts suggest, lowering overhead by exiting oversaturated towns and city centres could be a good way to adapt.

Renee Smith
Renee Smith

Digital marketing strategist with over 10 years of experience, specializing in SEO and content creation for e-commerce brands.

Popular Post