Why the Country Turned Away from Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

But not as many patrons 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 time this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's not a thing anymore.”

According to 23-year-old Martina, some of the very things Pizza Hut has been famous 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 station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As food prices have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its restaurants, which are being sliced from over 130 to just over 60.

The company, in common with competitors, has also faced its operating costs rise. Earlier this year, staffing costs jumped due to higher minimum pay and an rise in employer taxes.

Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's costs are comparable, explains a food expert.

Even though Pizza Hut has pickup and delivery through delivery platforms, it is missing out to larger chains which focus exclusively to off-premise dining.

“Another pizza company has taken over the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are quite high,” says the analyst.

However for these customers it is acceptable to get their special meal delivered to their door.

“We predominantly have meals at home now more than we eat out,” says Joanne, reflecting recent statistics that show a decrease in people visiting quick-service eateries.

Over the summer, informal dining venues saw a six percent decline in customers compared to the year before.

Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been offering high-quality prepared pies for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the performance of casual eateries,” says the expert.

The rising popularity of low-carb regimens has boosted sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.

As people dine out not as often, 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 retro than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “completely altered the general opinion of what excellent pie is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who owns a pizza van based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

From the perspective of a small pizza brand in a UK location, the founder says the industry is expanding but Pizza Hut has failed to offer anything fresh.

“There are now by-the-slice options, artisanal styles, New Haven-style, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pie fan to try.”

The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or loyalty to the chain.

Over time, Pizza Hut's share has been fragmented and allocated to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to raise prices – which experts say is tough at a time when household budgets are shrinking.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and retain staff where possible”.

He said its immediate priority was to keep running at the open outlets and off-premise points and to help employees through the change.

Yet with so much money going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the sector is “complex and using existing delivery apps comes at a cost”, experts say.

But, he adds, lowering overhead by leaving crowded locations could be a good way to evolve.

Andrew Arias
Andrew Arias

A digital strategist with over 10 years of experience in SEO and content marketing, passionate about helping businesses thrive online.

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