How the Country Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the go-to for parents and children to enjoy its unlimited dining experience, endless salad selection, and self-serve ice-cream.

Yet not as many customers are visiting the chain these days, and it is shutting down a significant portion of its UK outlets after being acquired following financial trouble for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she comments “it's fallen out of favor.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.

“The manner in which they do their buffet and their salad station, it feels like they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its restaurants, which are being cut from a large number to a smaller figure.

The chain, like many others, has also faced its expenses rise. This spring, staffing costs jumped due to rises in minimum wages and an increase in employer national insurance contributions.

A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's rates are close, says an industry analyst.

While Pizza Hut does offer off-premise options through external services, it is missing out to major competitors which solely cater to off-premise dining.

“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are on the higher side,” explains the specialist.

Yet for the couple it is acceptable to get their date night sent directly.

“We definitely eat at home now instead of we eat out,” comments Joanne, matching recent statistics that show a decline in people visiting informal dining spots.

Over the summer, casual and fast-food restaurants saw a notable decrease in diners compared to the previous year.

Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, senior partner at an advisory group, notes that not only have grocery stores been providing good-standard ready-to-bake pizzas for quite a while – some are even selling home-pizza ovens.

“Evolving preferences are also contributing in the success of casual eateries,” comments the analyst.

The rising popularity of high protein diets has driven sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he notes.

Since people dine out less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.

The “explosion of premium pizza outlets” over the last decade and a half, such as new entrants, has “fundamentally changed the public's perception of what excellent pie is,” explains the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she says.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates Smokey Deez based in Suffolk explains: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything new.

“You now have individual slices, London pizza, new haven, artisan base, Neapolitan, Detroit – it's a wonderful array for a pie fan to discover.”

Jack says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the company.

In recent years, Pizza Hut's customer base has been fragmented and allocated to its trendier, more nimble alternatives. To maintain its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when family finances are shrinking.

The managing director of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.

Yet with so much money going into operating its locations, it probably cannot to invest too much in its delivery service because the industry is “difficult and using existing external services comes at a price”, experts say.

However, it's noted, cutting its costs by withdrawing from competitive urban areas could be a smart move to evolve.

Sydney Wolf
Sydney Wolf

A Venice local with over 10 years of experience in tourism, sharing insights on water transport and hidden gems of the city.

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