Why the Country Lost Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for families and friends to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet not as many patrons are choosing the brand these days, and it is closing half of its British locations after being acquired following financial trouble for the second occasion this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's no longer popular.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The manner in which they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have risen sharply, Pizza Hut's unlimited dining format has become quite costly to run. As have its outlets, which are being reduced from a large number to 64.

The business, similar to other firms, has also experienced its expenses rise. This spring, employee wages jumped due to higher minimum pay and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's prices are comparable, says an industry analyst.

Although Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to big rivals which specialize to the delivery sector.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are on the higher side,” explains the specialist.

However for the couple it is acceptable to get their special meal brought to their home.

“We definitely eat at home now instead of we eat out,” says one of the diners, reflecting recent statistics that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

Moreover, a further alternative to ordered-in pies: the supermarket pizza.

An industry leader, senior partner at a leading firm, explains that not only have supermarkets been selling high-quality prepared pies for quite a while – some are even selling countertop ovens.

“Lifestyle changes are also having an impact in the success of quick-service brands,” states Mr. Hawkley.

The rising popularity of high protein diets has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

As people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than upmarket.

The “explosion of premium pizza outlets” over the last several years, such as new entrants, has “completely altered the public's perception of what quality pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she comments.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

At an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything fresh.

“Currently available are individual slices, regional varieties, new haven, sourdough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or allegiance to the company.

In recent years, Pizza Hut's share has been sliced up and distributed to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the buyout aimed “to protect our guest experience and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the open outlets and off-premise points and to support colleagues through the transition.

However with so much money going into running its restaurants, it likely can't afford to invest too much in its takeaway operation because the sector is “complicated and working with existing external services comes at a cost”, commentators say.

But, he adds, cutting its costs by withdrawing from competitive urban areas could be a smart move to adapt.

Benjamin Bauer Jr.
Benjamin Bauer Jr.

Digital strategist with over a decade of experience in crafting data-driven marketing campaigns.

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