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

At one time, Pizza Hut was the favorite for families and friends to feast on its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

However not as many patrons are choosing the restaurant currently, and it is closing half of its British 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,” explains one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, aged 24, she says “it's no longer popular.”

In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad station, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”

As ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to run. As have its restaurants, which are being cut from 132 to just over 60.

The business, like many others, has also faced its costs rise. In April this year, employee wages rose due to rises in minimum wages and an increase in employer taxes.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

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

Although Pizza Hut does offer pickup and delivery through external services, it is losing out to larger chains which focus exclusively to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” says the expert.

But for the couple it is justified to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” says one of the diners, echoing current figures that show a decrease in people frequenting quick-service eateries.

During the summer months, informal dining venues saw a six percent decline in customers compared to last summer.

Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.

An industry leader, senior partner at a leading firm, explains that not only have grocery stores been offering high-quality oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the success of quick-service brands,” comments the analyst.

The increased interest of low-carb regimens has boosted sales at poultry outlets, while reducing sales of dough-based meals, he adds.

Because people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last several years, including popular brands, has “dramatically shifted the general opinion of what quality pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing 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?
“The decision is simple.”
An independent operator, who runs a pizza van based in a regional area says: “It's not that lost interest in pizza – they just want improved value.”

The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

At a small pizza brand in Bristol, the founder says the sector is diversifying but Pizza Hut has not provided anything fresh.

“You now have slice concepts, London pizza, thin crust, artisan base, Neapolitan, deep-dish – it's a wonderful array for a pizza-loving consumer to explore.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the chain.

Over time, Pizza Hut's market has been sliced up and distributed to its fresher, faster competitors. To sustain its costly operations, it would have to charge more – which industry analysts say is difficult at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the buyout aimed “to ensure our customer service and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the open outlets and takeaway hubs and to assist staff through the restructure.

However with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and working with existing delivery apps comes at a cost”, experts say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a effective strategy to evolve.

Christina Williams
Christina Williams

Lena is a seasoned digital marketer and blogger passionate about helping others succeed in the online world.