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

Once, the popular pizza chain was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet a declining number of customers are choosing the brand nowadays, and it is reducing 50% of its British outlets after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's fallen out of favor.”

According to 23-year-old Martina, certain features Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.

“The manner in which 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 is that possible?’”

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to operate. The same goes for its outlets, which are being cut from over 130 to a smaller figure.

The company, similar to other firms, has also faced its expenses go up. In April this year, labor expenses increased due to higher minimum pay and an rise in employer social security payments.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's costs are comparable, says a food expert.

Although Pizza Hut does offer pickup and delivery through external services, it is losing out to larger chains which solely cater to this market.

“Domino's has taken over the takeaway pizza sector thanks to strong promotions 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,” notes the specialist.

Yet for these customers it is justified to get their evening together sent directly.

“We definitely eat at home now more than we eat out,” says Joanne, echoing latest data that show a drop in people going to informal dining spots.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been selling good-standard ready-to-bake pizzas for a long time – some are even offering home-pizza ovens.

“Lifestyle changes are also contributing in the performance of fast-food chains,” says Mr. Hawkley.

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

Because people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “completely altered the consumer view of what good pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.

“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many traditional pizzerias around the country?

“The decision is simple.”

Dan Puddle, who owns a small business based in a regional area comments: “It's not that lost interest in pizza – they just want improved value.”

The owner says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, regional varieties, new haven, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or allegiance to the chain.

Gradually, Pizza Hut's market has been fragmented and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to charge more – which experts say is difficult at a time when household budgets are tightening.

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

It was explained its immediate priority was to maintain service at the surviving locations and off-premise points and to assist staff through the restructure.

However with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the industry is “complicated and working with existing delivery apps comes at a price”, analysts say.

However, it's noted, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.