How the Public Lost Its Taste for Pizza Hut
At one time, Pizza Hut was the favorite for parents and children to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.
But a declining number of customers are choosing the chain currently, and it is reducing half of its UK locations after being acquired following financial trouble for the second instance this year.
I remember going Pizza Hut when I was a child,â says one London shopper. âIt was a tradition, you'd go on a Sunday â spend the whole day there.â Today, aged 24, she comments âit's no longer popular.â
According to a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.
âThe manner in which they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like âHow?ââ
As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. Similarly, its restaurants, which are being reduced from 132 to a smaller figure.
The business, similar to other firms, has also seen its operating costs go up. In April this year, staffing costs rose due to higher minimum pay and an higher rate of employer social security payments.
Two diners mention they used to go at Pizza Hut for a date âevery now and thenâ, but now they get delivery from a rival chain and think Pizza Hut is âvery overpricedâ.
Based on your selection, Pizza Hut and Domino's prices are similar, says a culinary author.
Even though Pizza Hut provides off-premise options through delivery platforms, it is losing out to major competitors which specialize to the delivery sector.
âDomino's has managed to dominate the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,â explains the specialist.
But for these customers it is worth it to get their date night delivered to their door.
âWe definitely eat at home now more than we eat out,â says one of the diners, reflecting latest data that show a decrease in people frequenting quick-service eateries.
Over the summer, informal dining venues saw a six percent decline in patrons compared to last summer.
Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.
Will Hawkley, global lead for leisure at a major consultancy, notes that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while â some are even promoting pizza-making appliances.
âShifts in habits are also contributing in the popularity of fast-food chains,â states the analyst.
The rising popularity of low-carb regimens has increased sales at chicken shops, while hitting sales of dough-based meals, he notes.
Because people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than upmarket.
The âexplosion of high-quality pizzeriasâ over the last several years, such as popular brands, has âcompletely altered the consumer view of what good pizza is,â says the food expert.
âA light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,â she says.
âWhy would anyone spend ÂŁ17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
âIt's a no-brainer.â
Dan Puddle, who operates a pizza van based in a county in England comments: âPeople havenât lost interest in pizza â they just want better pizza for their money.â
He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.
At Pizzarova in a city in southwest England, the proprietor says the sector is expanding but Pizza Hut has not provided anything innovative.
âCurrently available are by-the-slice options, regional varieties, thin crust, sourdough, traditional Italian, deep-dish â it's a wonderful array for a pie fan to explore.â
The owner says Pizza Hut âshould transformâ as newer generations don't have any fond memories or allegiance to the brand.
Over time, Pizza Hut's market has been divided and allocated to its trendier, more nimble rivals. To maintain its costly operations, it would have to increase costs â which commentators say is challenging at a time when family finances are shrinking.
A senior executive of Pizza Hut's overseas branches said the buyout aimed âto protect our customer service and retain staff where possibleâ.
He said its first focus was to keep running at the open outlets and delivery sites and to help employees through the restructure.
However with significant funds going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the market is âcomplex and using existing delivery apps comes at a costâ, analysts say.
But, he adds, cutting its costs by exiting competitive urban areas could be a smart move to adjust.