Why the Public Lost Interest in Its Appetite for Pizza Hut

In the past, the popular pizza chain was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However fewer customers are choosing the chain currently, and it is shutting down half of its British locations after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

According to young customer Martina, certain features Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.

“How 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?’”

As food prices have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its locations, which are being sliced from a large number to just over 60.

The chain, in common with competitors, has also faced its operating costs go up. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

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

While Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to big rivals which specialize to this market.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” notes the analyst.

However for Chris and Joanne it is worth it to get their date night sent directly.

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

During the summer months, quick-service eateries saw a six percent decline in patrons compared to the previous year.

There is also another rival to ordered-in pies: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at an advisory group, notes that not only have grocery stores been selling high-quality oven-ready pizzas for quite a while – some are even promoting countertop ovens.

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

The increased interest of protein-rich eating plans has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he notes.

Because people visit restaurants not as often, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “dramatically shifted the public's perception of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a large brand 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.”
Dan Puddle, who owns a pizza van based in Suffolk says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

From the perspective of an independent chain in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything innovative.

“Currently available are individual slices, artisanal styles, thin crust, sourdough, wood-fired, Detroit – it's a wonderful array for a pizza enthusiast to discover.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the company.

Gradually, Pizza Hut's share has been fragmented and distributed to its more modern, agile competitors. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is challenging at a time when personal spending are decreasing.

The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining experience and protect jobs where possible”.

The executive stated its first focus was to continue operating at the surviving locations and delivery sites and to help employees through the change.

However with significant funds going into running its restaurants, it may be unable to invest too much in its off-premise division because the industry is “difficult and partnering with existing third-party platforms comes at a cost”, experts say.

However, it's noted, lowering overhead by exiting competitive urban areas could be a effective strategy to adjust.

Emma Brown
Emma Brown

A tech enthusiast and sports fan passionate about developing apps for live sports streaming and digital entertainment solutions.