How the Public Turned Away from Its Craving for Pizza Hut

In the past, Pizza Hut was the favorite for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

Yet not as many customers are frequenting the chain currently, and it is shutting down half of its UK locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she states “it's fallen out of favor.”

According to young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now less appealing.

“The manner in which they do their buffet and their salad bar, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

Since ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. Similarly, its restaurants, which are being sliced from 132 to just over 60.

The company, in common with competitors, has also experienced its operating costs go up. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer social security payments.

Two diners explain they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's rates are close, says a food expert.

While Pizza Hut has off-premise options through delivery platforms, it is missing out to major competitors which focus exclusively to the delivery sector.

“Another pizza company has taken over the delivery market thanks to intensive advertising and ongoing discounts that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the expert.

Yet for these customers it is worth it to get their special meal brought to their home.

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

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

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

A hospitality expert, senior partner at a leading firm, points out that not only have supermarkets been offering premium ready-to-bake pizzas for years – some are even selling home-pizza ovens.

“Evolving preferences are also having an impact in the success of casual eateries,” comments Mr. Hawkley.

The growing trend of high protein diets has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he continues.

Since people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more dated than premium.

The rise of premium pizza outlets” over the last several years, for example popular brands, has “fundamentally changed the public's perception of what quality pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk comments: “It's not that lost interest in 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 had difficulty because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a UK location, the proprietor says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“There are now by-the-slice options, London pizza, New Haven-style, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”

Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or attachment to the brand.

Gradually, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which commentators say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the buyout aimed “to protect our guest experience and protect jobs where possible”.

He said its immediate priority was to maintain service at the open outlets and takeaway hubs and to help employees through the change.

Yet with large sums going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the market is “complex and working with existing third-party platforms comes at a expense”, analysts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a good way to adjust.

Deborah Porter
Deborah Porter

A tech enthusiast and certified Microsoft expert with over a decade of experience in software training and digital efficiency.