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

Once, Pizza Hut was the go-to for families and friends to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

However a declining number of customers are choosing the brand these days, and it is reducing 50% of its UK outlets after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she comments “it's no longer popular.”

According to a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the seventies are now not-so-hot.

“The manner in which they do their buffet and their salad station, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

As grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its restaurants, which are being sliced from 132 to 64.

The chain, in common with competitors, has also faced its operating costs go up. This spring, labor expenses increased due to increases in the legal wage floor and an rise in employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Depending on your choices, Pizza Hut and Domino's prices are comparable, explains a food expert.

Even though Pizza Hut does offer pickup and delivery through external services, it is missing out to major competitors which specialize to off-premise dining.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are quite high,” says the analyst.

But for Chris and Joanne it is justified to get their date night sent directly.

“We definitely eat at home now more than we eat out,” comments the female customer, matching latest data that show a drop in people frequenting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

Moreover, a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, points out that not only have retailers been selling high-quality prepared pies for quite a while – some are even selling pizza-making appliances.

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

The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.

Because people dine out more rarely, they may look for a more premium experience, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.

The growth of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “dramatically shifted the consumer view of what good pizza is,” notes the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in a county in England says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

From the perspective of Pizzarova in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything innovative.

“Currently available are individual slices, regional varieties, new haven, fermented dough, wood-fired, Detroit – it's a heavenly minefield for a pie fan to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or attachment to the company.

Over time, Pizza Hut's market has been sliced up and allocated to its fresher, faster competitors. To sustain its expensive staffing and restaurants, 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 overseas branches said the rescue aimed “to ensure our guest experience and retain staff where possible”.

It was explained its key goal was to keep running at the open outlets and takeaway hubs and to assist staff through the restructure.

Yet with large sums going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the industry is “complex and using existing third-party platforms comes at a expense”, analysts say.

Still, experts suggest, lowering overhead by exiting oversaturated towns and city centres could be a smart move to adjust.

Brian Walker
Brian Walker

A tech enthusiast and digital strategist with over a decade of experience in helping businesses adapt to technological changes.