How the Public Turned Away from Its Craving for Pizza Hut

At one time, the popular pizza chain was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

Yet fewer customers are frequenting the restaurant nowadays, and it is reducing a significant portion of its British locations after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “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.”

In the view of young customer Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now outdated.

“How they do their buffet and their salad bar, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How can they?’”

Since food prices have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its locations, which are being cut from over 130 to 64.

The chain, similar to other firms, has also faced its operating costs go up. This spring, labor expenses rose due to rises in minimum wages and an higher rate of employer taxes.

Two diners mention they would often visit at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's rates are similar, notes a food expert.

While Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to big rivals which focus exclusively to this market.

“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the original prices are on the higher side,” explains the analyst.

Yet for Chris and Joanne it is justified to get their evening together sent directly.

“We absolutely dine at home now rather than we eat out,” explains Joanne, matching recent statistics that show a decline in people frequenting informal dining spots.

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

There is also one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have grocery stores been providing good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.

“Evolving preferences are also having an impact in the success of fast-food chains,” states Mr. Hawkley.

The growing trend of low-carb regimens has boosted sales at chicken shops, while reducing sales of dough-based meals, he adds.

As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, including popular brands, has “dramatically shifted the general opinion of what good pizza is,” says the industry commentator.

“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 states.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates a pizza van based in Suffolk explains: “It's not that stopped liking pizza – they just want improved value.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

According to Pizzarova in a city in southwest England, the founder says the industry is broadening but Pizza Hut has not provided anything fresh.

“There are now slice concepts, artisanal styles, New Haven-style, fermented dough, traditional Italian, deep-dish – it's a delightful challenge for a pizza-loving consumer to try.”

He says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the company.

In recent years, Pizza Hut's customer base has been sliced up and allocated to its more modern, agile rivals. To sustain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when household budgets are decreasing.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our customer service and retain staff where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the restructure.

However with so much money going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the market is “complex and using existing third-party platforms comes at a cost”, analysts say.

However, it's noted, cutting its costs by exiting competitive urban areas could be a good way to evolve.

Jill Wright
Jill Wright

A tech enthusiast and software developer with a passion for exploring emerging technologies and sharing practical insights.