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

In the past, the popular pizza chain was the top choice for groups and loved ones to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer customers are frequenting the brand these days, and it is reducing half of its UK locations after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, 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 recognized for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their all-you-can-eat 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 ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to operate. As have its restaurants, which are being sliced from 132 to just over 60.

The chain, like many others, has also faced its costs rise. Earlier this year, employee wages increased due to increases in the legal wage floor and an higher rate of employer social security payments.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's costs are close, says an industry analyst.

While Pizza Hut provides off-premise options through delivery platforms, it is losing out to major competitors which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the analyst.

But for the couple it is acceptable to get their evening together delivered to their door.

“We absolutely dine at home now instead of we eat out,” says the female customer, matching latest data that show a decline in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a six percent decline in patrons compared to the year before.

Moreover, a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, senior partner at a leading firm, notes that not only have supermarkets been offering high-quality oven-ready pizzas for a long time – some are even selling countertop ovens.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” says the analyst.

The growing trend of protein-rich eating plans has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

As people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The rise of artisanal pizza places” over the last several years, such as popular brands, has “dramatically shifted the public's perception of what excellent pie is,” notes the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who owns a pizza van based in a regional area 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 had difficulty because it failed to adapt with evolving tastes.

From the perspective of Pizzarova in a UK location, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything innovative.

“Currently available are by-the-slice options, regional varieties, thin crust, fermented dough, wood-fired, rectangular – it's a wonderful array for a pie fan to discover.”

The owner says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the company.

In recent years, Pizza Hut's customer base has been sliced up and spread to its more modern, agile competitors. To keep up its costly operations, it would have to raise prices – which commentators say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to ensure our guest experience and retain staff where possible”.

The executive stated its first focus was to maintain service at the surviving locations and delivery sites and to assist staff through the change.

However with so much money going into maintaining its outlets, it likely can't afford to invest too much in its takeaway operation because the sector is “complicated and using existing external services comes at a price”, commentators say.

Still, experts suggest, cutting its costs by leaving crowded locations could be a good way to adjust.

Lisa Rice
Lisa Rice

A food industry analyst with over a decade of experience, specializing in consumer trends and product reviews.