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

At one time, the popular pizza chain was the favorite for parents and children to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

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

I remember going Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she states “it's no longer popular.”

According to young customer Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now outdated.

“The way they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its outlets, which are being reduced from over 130 to just over 60.

The company, similar to other firms, has also experienced its operating costs rise. In April this year, staffing costs increased due to higher minimum pay and an higher rate of employer taxes.

Two diners say 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 “too expensive”.

Depending on your order, Pizza Hut and Domino's prices are close, explains an industry analyst.

Although Pizza Hut does offer off-premise options through third-party apps, it is losing out to major competitors which specialize to the delivery sector.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the analyst.

Yet for the couple it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now rather than we eat out,” comments one of the diners, matching recent statistics that show a decrease in people frequenting informal dining spots.

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

There is also another rival to pizza from eateries: the cook-at-home oven pizza.

An industry leader, global lead for leisure at an advisory group, explains that not only have retailers been providing high-quality oven-ready pizzas for a long time – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the success of quick-service brands,” states Mr. Hawkley.

The rising popularity of high protein diets has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.

Because people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than luxurious.

The rise of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “dramatically shifted the general opinion of what excellent pie is,” notes the food expert.

“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 downfall,” she states.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a pizza van based in a regional area says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At a small pizza brand in Bristol, the founder says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“Currently available are individual slices, regional varieties, new haven, artisan base, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or loyalty to the chain.

In recent years, Pizza Hut's share has been fragmented and distributed to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to charge more – which experts say is challenging at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and save employment where possible”.

He said its key goal was to keep running at the open outlets and off-premise points and to help employees through the change.

But with so much money going into maintaining its outlets, it likely can't afford to allocate significant resources in its delivery service because the sector is “difficult and using existing third-party platforms comes at a price”, analysts say.

Still, experts suggest, cutting its costs by exiting crowded locations could be a effective strategy to adapt.

Jessica Fisher
Jessica Fisher

A tech-savvy writer passionate about blockchain innovations and virtual reality gaming, with years of experience in the crypto casino industry.