How the Nation Lost Interest in Its Taste for Pizza Hut

Once, Pizza Hut was the top choice for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

Yet a declining number of customers are choosing the restaurant these days, and it is closing a significant portion of its British locations after being bought out of administration for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

In the view of a diner in her twenties, certain features 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 all-you-can-eat and their salad station, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to operate. Similarly, its locations, which are being sliced from 132 to just over 60.

The company, similar to other firms, has also experienced its operating costs increase. This spring, staffing costs increased due to rises in minimum wages and an increase in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's rates are similar, notes a food expert.

Even though Pizza Hut has takeaway and deliveries through external services, it is falling behind to larger chains which specialize to this market.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are quite high,” notes the specialist.

Yet for these customers it is worth it to get their evening together delivered to their door.

“We definitely eat at home now rather than we eat out,” says the female customer, matching current figures that show a decline in people frequenting quick-service eateries.

In the warmer season, informal dining venues saw a six percent decline in customers compared to the previous year.

There is also one more competitor to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, global lead for leisure at a major consultancy, explains that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.

“Evolving preferences are also playing a factor in the performance of casual eateries,” states Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he notes.

Since people go out to eat 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 premium.

The “explosion of high-quality pizzerias” over the last decade and a half, such as popular brands, has “fundamentally changed the general opinion of what excellent pie is,” explains the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.

“Why would anyone spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

An independent operator, who owns a pizza van based in a county in England says: “People haven’t fallen out of love with pizza – they just want improved value.”

The owner says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

According to an independent chain in a UK location, the proprietor says the sector is broadening but Pizza Hut has neglected to introduce anything new.

“You now have slice concepts, regional varieties, New Haven-style, fermented dough, wood-fired, Detroit – it's a delightful challenge for a pie fan to discover.”

The owner says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the chain.

Gradually, Pizza Hut's customer base has been sliced up and distributed to its more modern, agile competitors. To sustain its high labor and location costs, it would have to charge more – which experts say is difficult at a time when personal spending are tightening.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to ensure our customer service and save employment where possible”.

The executive stated its first focus was to keep running at the open outlets and off-premise points and to support colleagues through the restructure.

Yet with large sums going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the market is “complex and using existing external services comes at a price”, analysts say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a smart move to evolve.