How the Nation Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

Yet a declining number of patrons are visiting the restaurant currently, and it is reducing a significant portion of its British outlets after being acquired following financial trouble for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's fallen out of favor.”

For 23-year-old Martina, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“The manner in which they do their buffet and their salad station, it appears that they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”

Because food prices have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its locations, which are being sliced from over 130 to 64.

The company, similar to other firms, has also seen its operating costs rise. In April this year, employee wages rose due to rises in minimum wages and an increase in employer social security payments.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

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

Although Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to major competitors which solely cater to this market.

“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” says the specialist.

But for the couple it is worth it to get their special meal delivered to their door.

“We absolutely dine at home now instead of we eat out,” explains the female customer, matching recent statistics that show a decline in people visiting casual and fast-food restaurants.

During the summer months, informal dining venues saw a six percent decline in patrons compared to the previous year.

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a major consultancy, explains that not only have grocery stores been offering good-standard oven-ready pizzas for years – some are even selling pizza-making appliances.

“Evolving preferences are also having an impact in the success of quick-service brands,” comments the analyst.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

Since people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last several years, including popular brands, has “completely altered the public's perception of what good pizza is,” says the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she states.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in a county in England says: “People haven’t stopped liking pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with evolving tastes.

From the perspective of a small pizza brand in a UK location, the founder says the industry is expanding but Pizza Hut has not provided anything new.

“Currently available are slice concepts, artisanal styles, new haven, fermented dough, traditional Italian, rectangular – it's a delightful challenge for a pie fan to discover.”

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

Over time, Pizza Hut's customer base has been fragmented and spread to its more modern, agile alternatives. To maintain its costly operations, it would have to charge more – which commentators say is tough at a time when household budgets are shrinking.

A senior executive of Pizza Hut's global operations said the buyout aimed “to protect our customer service and protect jobs where possible”.

He said its key goal was to keep running at the open outlets and takeaway hubs and to support colleagues through the change.

However with so much money going into operating its locations, it may be unable to invest too much in its delivery service because the market is “difficult and working with existing delivery apps comes at a cost”, commentators say.

However, it's noted, cutting its costs by exiting competitive urban areas could be a effective strategy to evolve.

Stephanie Austin
Stephanie Austin

An art historian and curator passionate about preserving and sharing the cultural treasures of Italy's iconic destinations.

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