Why the Public Lost Interest in Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the favorite for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.

But a declining number of patrons are visiting the restaurant nowadays, and it is shutting down 50% of its UK locations after being rescued from insolvency for the second instance this 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.” Today, as a young adult, she states “it's fallen out of favor.”

According to young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.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 bar, it feels like they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its outlets, which are being sliced from a large number to a smaller figure.

The company, in common with competitors, has also experienced its expenses increase. In April this year, labor expenses jumped due to higher minimum pay and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's prices are similar, says an industry analyst.

Although Pizza Hut has takeaway and deliveries through third-party apps, it is losing out to big rivals which solely cater to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the analyst.

However for Chris and Joanne it is worth it to get their special meal sent directly.

“We predominantly have meals at home now more than we eat out,” comments Joanne, echoing current figures that show a drop in people visiting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a 6% drop in customers compared to the previous year.

There is also another rival to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been providing high-quality prepared pies for years – some are even offering countertop ovens.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments the analyst.

The growing trend of low-carb regimens has boosted sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.

Because people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than upmarket.

The growth of artisanal pizza places” over the last decade and a half, including boutique chains, has “completely altered the general opinion of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she comments.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who owns Smokey Deez based in a regional area explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it could not keep up with changing preferences.

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

“Currently available are slice concepts, London pizza, New Haven-style, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

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

Gradually, Pizza Hut's market has been fragmented and distributed to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to increase costs – which experts say is challenging at a time when personal spending are shrinking.

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

The executive stated its immediate priority was to keep running at the surviving locations and delivery sites and to support colleagues through the transition.

Yet with significant funds going into running its restaurants, it may be unable to invest too much in its off-premise division because the market is “complex and working with existing delivery apps comes at a expense”, experts say.

However, it's noted, lowering overhead by exiting crowded locations could be a effective strategy to adapt.

Keith Fitzgerald
Keith Fitzgerald

A passionate writer and traveler sharing experiences and advice to inspire personal growth and adventure.