Why the Public Lost Its Craving for Pizza Hut

At one time, the popular pizza chain was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

But fewer diners are visiting the chain nowadays, and it is reducing a significant portion of its UK restaurants after being acquired following financial trouble for the second time this year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she comments “it's not a thing anymore.”

For young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

As ingredient expenses have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its restaurants, which are being sliced from 132 to 64.

The company, similar to other firms, has also faced its expenses increase. In April this year, labor expenses jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's costs are comparable, notes a culinary author.

While Pizza Hut provides pickup and delivery through third-party apps, it is falling behind to larger chains which specialize to off-premise dining.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to intensive advertising and frequent offers that make consumers feel like they're saving money, when in reality the standard rates are on the higher side,” says the specialist.

However for the couple it is acceptable to get their evening together brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, echoing current figures that show a decline in people going to informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in patrons compared to the previous year.

Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, notes that not only have supermarkets been providing good-standard prepared pies for quite a while – some are even offering home-pizza ovens.

“Lifestyle changes are also playing a factor in the performance of fast-food chains,” states the analyst.

The increased interest of protein-rich eating plans has driven sales at chicken shops, while reducing sales of dough-based meals, he notes.

Because people visit restaurants less frequently, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The growth of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what quality pizza is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who owns a pizza van based in a regional area says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

Dan 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.

At a small pizza brand in a UK location, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything new.

“There are now slice concepts, artisanal styles, new haven, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to explore.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the brand.

Gradually, Pizza Hut's share has been divided and spread to its more modern, agile rivals. To keep up its costly operations, it would have to raise prices – which commentators say is tough at a time when personal spending are shrinking.

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

The executive stated its first focus was to keep running at the surviving locations and delivery sites and to assist staff through the transition.

But with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complex and using existing third-party platforms comes at a cost”, experts say.

But, he adds, reducing expenses by withdrawing from competitive urban areas could be a smart move to adapt.

John Barker
John Barker

An experienced digital marketer and e-commerce consultant with a passion for helping businesses thrive online through data-driven strategies.