How the Public Lost Its Craving for Pizza Hut

Once, the popular pizza chain was the top choice for families and friends to feast on its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

Yet not as many patrons are choosing the chain currently, and it is shutting down 50% of its UK outlets after being rescued from insolvency for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's no longer popular.”

In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the 1970s are now less appealing.

“How they do their buffet and their salad station, it seems as if they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

Because food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its outlets, which are being sliced from over 130 to a smaller figure.

The business, in common with competitors, has also experienced its costs increase. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer taxes.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's costs are close, explains a food expert.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to larger chains which specialize to off-premise dining.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” says the analyst.

However for Chris and Joanne it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now more than we eat out,” explains the female customer, reflecting recent statistics that show a drop in people visiting quick-service eateries.

In the warmer season, quick-service eateries saw a notable decrease in customers compared to last summer.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been providing high-quality prepared pies for years – some are even offering pizza-making appliances.

“Shifts in habits are also contributing in the popularity of casual eateries,” comments the analyst.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.

Because people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than luxurious.

The rise of premium pizza outlets” over the last several years, including popular brands, has “fundamentally changed the public's perception of what good pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in a regional area explains: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to an independent chain in Bristol, the founder says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.

“You now have slice concepts, London pizza, New Haven-style, artisan base, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the chain.

In recent years, Pizza Hut's market has been divided and allocated to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to raise prices – which commentators say is difficult at a time when family finances are shrinking.

The leadership of Pizza Hut's international markets said the rescue aimed “to safeguard our dining experience and protect jobs where possible”.

It was explained its key goal was to keep running at the surviving locations and delivery sites and to support colleagues through the restructure.

But with so much money going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the sector is “difficult and partnering with existing delivery apps comes at a expense”, analysts say.

Still, experts suggest, reducing expenses by leaving competitive urban areas could be a effective strategy to adapt.

Shawn Huffman
Shawn Huffman

A passionate mixed-media artist and educator, sharing techniques and stories to inspire creativity in others.