Why the Public Turned Away from Its Taste for Pizza Hut
In the past, the popular pizza chain was the go-to for parents and children to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.
But a declining number of diners are choosing the restaurant nowadays, and it is shutting down 50% of its British restaurants after being bought out of administration for the second occasion this calendar year.
I remember going Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she comments “it's fallen out of favor.”
For young customer Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the seventies are now not-so-hot.
“The manner in which they do their buffet and their salad bar, it appears that they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”
Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its locations, which are being cut from a large number to just over 60.
The business, in common with competitors, has also experienced its costs rise. This spring, staffing costs rose due to increases in the legal wage floor and an higher rate of employer social security payments.
A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “not good value”.
Based on your selection, Pizza Hut and Domino's prices are close, explains an industry analyst.
Although Pizza Hut provides off-premise options through delivery platforms, it is missing out to larger chains which solely cater to off-premise dining.
“Domino's has taken over the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” says the expert.
However for the couple it is acceptable to get their date night brought to their home.
“We absolutely dine at home now instead of we eat out,” explains the female customer, echoing recent statistics that show a decline in people going to informal dining spots.
During the summer months, quick-service eateries saw a 6% drop in diners compared to last summer.
There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.
An industry leader, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been selling high-quality oven-ready pizzas for years – some are even selling home-pizza ovens.
“Shifts in habits are also contributing in the popularity of fast-food chains,” states Mr. Hawkley.
The increased interest of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of high-carbohydrate options, he notes.
As people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more dated than premium.
The rise of premium pizza outlets” over the last decade and a half, for example popular brands, has “dramatically shifted the general opinion of what excellent pie is,” explains the food expert.
“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she says.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a regional area explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”
He says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.
According to Pizzarova in Bristol, owner Jack Lander says the sector is diversifying but Pizza Hut has failed to offer anything new.
“Currently available are slice concepts, regional varieties, new haven, sourdough, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to explore.”
The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or attachment to the brand.
In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to raise prices – which commentators say is tough at a time when family finances are tightening.
The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our guest experience and protect jobs where possible”.
The executive stated its key goal was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the change.
Yet with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its delivery service because the industry is “complicated and using existing third-party platforms comes at a price”, analysts say.
However, it's noted, lowering overhead by exiting competitive urban areas could be a smart move to evolve.