Why the Nation Lost Interest in Its Craving for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for groups and loved ones to feast on its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

Yet not as many customers are choosing the brand currently, and it is reducing 50% of its British locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she states “it's fallen out of favor.”

In the view of young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How can they?’”

Since food prices have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being cut from a large number to 64.

The business, like many others, has also faced its expenses go up. Earlier this year, employee wages rose due to rises in minimum wages and an higher rate of employer social security payments.

Two diners explain they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's costs are close, notes a culinary author.

Although Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to major competitors which focus exclusively to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're saving money, when in reality the base costs are on the higher side,” says the expert.

Yet for the couple it is justified to get their date night brought to their home.

“We absolutely dine at home now instead of we eat out,” comments Joanne, reflecting recent statistics that show a decrease in people frequenting quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in customers compared to the previous year.

Additionally, one more competitor to pizza from eateries: the supermarket pizza.

An industry leader, head of leisure and hospitality at an advisory group, explains that not only have grocery stores been providing good-standard ready-to-bake pizzas for a long time – some are even promoting home-pizza ovens.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.

The rising popularity of high protein diets has increased sales at chicken shops, while hitting sales of dough-based meals, he adds.

Since people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of premium pizza outlets” over the last several years, for example boutique chains, has “dramatically shifted the general opinion of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she states.

“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who owns a small business based in Suffolk says: “People haven’t stopped liking pizza – they just want improved value.”

He 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.

According to a small pizza brand in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has neglected to introduce anything fresh.

“You now have individual slices, London pizza, thin crust, fermented dough, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”

He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the company.

In recent years, Pizza Hut's share has been fragmented and distributed to its fresher, faster competitors. To maintain its high labor and location costs, it would have to increase costs – which industry analysts say is tough at a time when household budgets are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and save employment where possible”.

He said its key goal was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the change.

However with significant funds going into operating its locations, it probably cannot to invest too much in its off-premise division because the sector is “complicated and working with existing external services comes at a expense”, experts say.

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