Why the Public Lost Its Craving for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to enjoy its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

Yet fewer customers are choosing the chain these days, and it is reducing half of its British restaurants after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's no longer popular.”

According to young customer Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have lower standards... They provide so much food and you're like ‘How?’”

Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become quite costly to operate. As have its locations, which are being sliced from over 130 to 64.

The chain, in common with competitors, has also faced its expenses increase. In April this year, employee wages increased due to rises in minimum wages and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's rates are comparable, says a food expert.

While Pizza Hut provides pickup and delivery through delivery platforms, it is losing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the specialist.

But for Chris and Joanne it is acceptable to get their evening together sent directly.

“We definitely eat at home now more than we eat out,” comments one of the diners, matching current figures that show a drop in people frequenting informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in customers compared to last summer.

There is also a further alternative to pizza from eateries: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have grocery stores been selling premium oven-ready pizzas for a long time – some are even selling countertop ovens.

“Shifts in habits are also contributing in the performance of casual eateries,” says the analyst.

The increased interest of high protein diets has increased sales at poultry outlets, while hitting sales of high-carbohydrate options, he notes.

Because people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the public's perception of what quality pizza is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie 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 a pizza van based in Suffolk explains: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

According to an independent chain in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything fresh.

“There are now individual slices, artisanal styles, thin crust, artisan base, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the company.

Over time, Pizza Hut's market has been fragmented and distributed to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is tough at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our guest experience and retain staff where possible”.

It was explained its first focus was to continue operating at the surviving locations and off-premise points and to support colleagues through the transition.

But with significant funds going into maintaining its outlets, it likely can't afford to invest too much in its off-premise division because the market is “complex and using existing external services comes at a cost”, commentators say.

Still, experts suggest, lowering overhead by leaving crowded locations could be a smart move to adapt.

Adrienne Brown
Adrienne Brown

A passionate life coach and writer dedicated to helping others achieve their full potential through mindful living and practical advice.