How the Public Turned Away from Its Craving for the Pizza Hut Chain

Once, Pizza Hut was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

But not as many diners are frequenting the chain nowadays, and it is shutting down 50% of its UK outlets after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”

As food prices have soared, Pizza Hut's buffet-style service has become quite costly to maintain. The same goes for its locations, which are being sliced from over 130 to 64.

The business, like many others, has also seen its costs rise. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an higher rate of employer social security payments.

Two diners mention 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 “too expensive”.

Based on your order, Pizza Hut and Domino's costs are close, explains a culinary author.

Even though Pizza Hut provides pickup and delivery through third-party apps, it is losing out to major competitors which specialize to the delivery sector.

“Domino's has taken over the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the expert.

However 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, echoing recent statistics that show a decline in people visiting casual and fast-food restaurants.

Over the summer, quick-service eateries saw a six percent decline in diners compared to the year before.

Moreover, another rival to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been selling good-standard oven-ready pizzas for a long time – some are even selling countertop ovens.

“Lifestyle changes are also having an impact in the performance of casual eateries,” comments the expert.

The increased interest of low-carb regimens has increased sales at chicken shops, while affecting sales of high-carbohydrate options, he notes.

Because people visit restaurants more rarely, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more retro than luxurious.

The growth of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” says the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who runs a small business based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

According to a small pizza brand in a UK location, the founder says the sector is diversifying but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, regional varieties, new haven, sourdough, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the company.

In recent years, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to charge more – which industry analysts say is tough at a time when personal spending are tightening.

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

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to help employees through the transition.

But with so much money going into maintaining its outlets, it may be unable to invest too much in its delivery service because the industry is “complicated and partnering with existing third-party platforms comes at a cost”, analysts say.

But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adjust.

Stephanie Lawrence
Stephanie Lawrence

A wellness coach and writer passionate about helping others achieve a fulfilling and healthy lifestyle through mindful practices.