How the Country Lost Interest in Its Craving for the Pizza Hut Chain

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

However not as many patrons are choosing the chain nowadays, and it is closing a significant portion of its British locations after being bought out of administration for the second time this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad station, it appears that they are cutting corners and have lower standards... They provide so much food and you're like ‘How?’”

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its outlets, which are being reduced from a large number to just over 60.

The business, similar to other firms, has also faced its expenses go up. In April this year, staffing costs increased due to increases in the legal wage floor and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they used to go 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 costs are comparable, says a culinary author.

While Pizza Hut does offer takeaway and deliveries through external services, it is falling behind to major competitors which specialize to off-premise dining.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the analyst.

However for Chris and Joanne it is worth it to get their date night sent directly.

“We definitely eat at home now rather than we eat out,” comments the female customer, echoing current figures that show a decline in people visiting informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in patrons compared to the year before.

There is also another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, global lead for leisure at a leading firm, notes that not only have supermarkets been selling 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 success of casual eateries,” comments Mr. Hawkley.

The growing trend of low-carb regimens has increased sales at chicken shops, while reducing sales of dough-based meals, he notes.

Because people dine out not as often, they may look for a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more old-fashioned than upmarket.

The “explosion of premium pizza outlets” over the last several years, including boutique chains, has “completely altered the general opinion of what excellent pie is,” says the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a small business based in Suffolk says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

At an independent chain in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, regional varieties, new haven, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”

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

Gradually, Pizza Hut's share has been sliced up and spread to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the buyout aimed “to protect our customer service and save employment where possible”.

It was explained its immediate priority was to keep running at the surviving locations and off-premise points and to help employees through the restructure.

Yet with so much money going into maintaining its outlets, it probably cannot to allocate significant resources in its off-premise division because the sector is “difficult and using existing external services comes at a price”, experts say.

But, he adds, lowering overhead by withdrawing from crowded locations could be a effective strategy to adapt.

Jack Ortega
Jack Ortega

A seasoned fashion journalist with a passion for sustainable style and trend forecasting.

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